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For immediate release:
Tuesday 26 November 2002
Investment
Research
IMA
response to FSA Discussion Paper 15
The IMA released today its response to
the FSA’s Discussion Paper 15, “Investment Research:
Conflicts and other Issues”.
While welcoming the FSA’s initiative
to examine the issue, the IMA argues that new regulatory
provisions are not necessary to protect institutional
investors from potential conflicts of interest.
In particular, while analyst research may make a
useful contribution, it will rarely be the deciding factor
in fund managers’ investment decisions.
As regards the retail market, the IMA
believes that the potential problems in the UK are less than
in the US, since there has been much less tendency for a
culture of the “star analyst” to emerge here. However,
there may be a need for enhanced disclosure provisions for
research
intended for the retail market, where investors’ knowledge
of the potential conflicts of interest is not so deep.
In the UK, the main audience for analyst research is
institutional clients, who are in general better placed to
judge the nature and extent of any potential conflicts of
interest.
For further information, please
contact:
Richard
Saunders, Chief Executive, IMA, 020 7831 0898
Clare
Arber, Head of Communications, IMA,
020 7831 0898
Notes to Editors:
A
copy of the IMA’s full response is attached.
65
Kingsway London WC2B 6TD
Tel:
+44 (0) 20 7831 0898 Fax:+44 (0) 20 7831 9975
www.investmentuk.org
Investment
Management Association is a company limited by guarantee
registered in England and Wales Registered number 4343737.
Registered office as above.
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