Recent evidence suggests that financial analysts have substantial conflicts of interest when publishing their research reports. We argue that not only investors but also listed companies benefit from analyst coverage and suggest that the financial burden of such coverage be shifted entirely to...

The National Association of Securities Dealers and the New York Stock Exchange recently have adopted and then amended new rules relating to research analyst conflicts of interest. However, open questions remain, and these two self‐regulatory organizations (SROs), in collaboration with the SEC,...

Investor trust in the mutual fund industry has been undermined seriously in recent months by the wide range of abuses brought to light by federal and state regulators. While NASD does not have jurisdiction or authority over mutual funds or their advisors, it does regulate the sales practices of...

As part of an ongoing and potentially far‐reaching overhaul of investment company and investment adviser regulation, the Securities and Exchange Commission recently adopted Rule 206 (4)‐7 under the Investment Advisers Act of 1940 and Rule 38a‐1 under the Investment Company Act of 1940....

The challenges involved in meeting the new requirements of Rule 206 (4)‐7 under the Investment Advisers Act of 1940 and Rule 38a‐1 under the Investment Company Act of 1940 will be substantial for some organizations. At a minimum, all organizations will be required to document their...

During 2003, compensation practices for the retail sale of mutual funds came under fire. Recent revelations about failures in the processing of mutual fund breakpoints had triggered a more in‐depth investigation into mutual fund marketing and compensation practice by securities regulators,...

Disputes regarding termination of employment under the Whistleblower provisions of the Sarbanes‐Oxley Corporate Reform Act of 2002 are subject to required arbitration according to the “Boss” decision. This article explores the requirements under self regulatory organization (SRO) rules of...

The expectations of investors, regulators, and indeed management towards the compliance department are changing. For compliance to evolve, management must review its current operations and align its processes more closely with the desires and needs of the stakeholders. With regulators pushing...

In this article, the authors explore the origins of share ownership and its implications for corporate governance. They trace some of the current problems with governance structure that exist in public companies and what solutions can be applied to correct these problems. The authors also offer...

On December 17, 2003 the Securities and Exchange Commission (SEC) approved an overhaul of the New York Stock Exchange’s (NYSE’s) system of corporate governance. After questions arose concerning the NYSE’s ability to discharge its self‐regulatory functions following the resignation of...