ASIC Broker Disclosure Crackdown

Submitted by Marco on 20 April, 2006 - 09:12

ASIC is cracking down on brokers - with the vision of having them disclose any connections - or fees that they receive from companies they review in their research notes. Given the recent events and news from Citigroup and the Westpoint collapse, ASIC has called for submissions to a discussion paper detailing case studies of examples where there has been conflicts of interest. In the discussion paper, ASIC presents how retail and wholesale financial advisers and fund managers in their research reports currently manage their conflicts of interest. There is also a proposal to alter the disclosure rules for the stockbrokers on the daily research notes of investment strategies and recommendations. As a Share Trader, this would be quite interesting to see - however it would be quite a bulky document I would assume. Anyway, something to look forward to in future...

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