Standard & Poor’s Equity Research Services released the firm’s research objectivity policy on Monday, outlining its policies and code of professional conduct.
The S&P Policy provides an explanation of the policies and procedures that are designed to assist in ensuring that its equity analysis and opinions are free of potential conflicts of interest and the appearance of conflicts. It outlines key policies and procedures that are in place to address, among other things, analyst communication with the public, research report disclosures and timeliness, supervisory responsibilities and analyst relationships with subject companies.
“Standard & Poor’s has always had a strong commitment to independence and analytical integrity,” said Kenneth Shea, managing director of S&P’s Global Equity Research. “But in the current investment climate, when many investors and their advisors are rightly concerned about the independence and objectivity of investment research, it is critical that leading firms like Standard & Poor’s meet or exceed the sound guiding principles promulgated by the highly respected CFA Institute.”
Although many of the stated policies have been in place for a number of years, Standard & Poor’s says it is publicizing them to demonstrate support of the CFA Centre for Financial Market Integrity and its own research objectivity standards.
“We welcome Standard & Poor’s use of the CFA Centre’s Research Objectivity Standards as a guideline for refining its own formal policy,” said Jonathan Boersma, director for standards of practice at the CFA Centre. “Our standards — developed to benefit investors who rely on research to guide their portfolio decisions— promote the highest standards of professional excellence and integrity.”
S&P publishes research objectivity standards
Policies designed to show firm’s analysis is free of potential conflicts of interest
- By: James Langton
- August 23, 2005 August 23, 2005
- 07:40