According to Merrill Lynch’s Web Site the New York-based brokerage behemoth supports the principle of analyst certification, and intends to adopt it for its own analysts.
The firm added that it intends to comment to the Securities and Exchange Commission on how best to develop and fully implement this principle in broker dealer research practices.
“We support the objectives of the SEC to enhance investor confidence in analyst opinions and research compensation practices and welcome any responsible steps toward that end,” said Robert McCann, head of global securities research and economics.
The firm says that it is committed to providing transparency and clarity in research for its clients and believes adoption of the principle of certification can be an additional important step toward reinforcing investor confidence. “Merrill Lynch will continue to lead efforts to reassure investors that all research recommendations are made with objectivity, integrity and a clear analytical framework,” said McCann.