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Brussels, 28 November 2002
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Internal Market Commissioner Frits Bolkestein said: “Investors need quality research
and analysis to help them make investment decisions and feel confident that
analysts’ recommendations are soundly-based and objective. There has been
considerable debate over the past year or so about the objectivity of analysts
carrying out research in major investment banks. This has been highlighted in
particular by a number of recent cases in the US, where business concerns in other
parts of the firm appear to have compromised analysts’ work. This group will advise
the Commission on how best to ensure high standards of analyst integrity and
objectivity so that investors throughout the EU can benefit from high quality
research.”
In today’s financial markets, investment research is used in a variety of situations. It
is often published and so available to a wide range of companies and individuals
making investment decisions. In particular, it is used to guide investment decisions
made by pension funds and insurance companies. But increasingly, research has
also played an important role in generating investment banking business, which can
lead to conflicts of interest for the analysts concerned.
Recently agreed EU legislation and legislative proposals – the Market Abuse
Directive (see IP/02/1547) and the proposed Investment Services Directive
(IP/02/1706) – will introduce some regulatory provisions which affect analysts.
This market-focused group will examine the role played by investment research and
the different interests of the various stakeholders – such as securities issuers,
investment banks, brokers and investors. It will report its findings to the Commission
services within six months. The group will focus in particular on:
− how conflicts of interest can best be managed to ensure analyst objectivity;
− how research is paid for, and by whom, and
− the role of best practice codes and regulation in delivering investor protection.
The members of the group are:
Ian Mackintosh
Chair
Independent consultant
Bernard Coupez
Vice-chair
Head of Global Research, BNP Paribas Asset Management
and President of French Society of Financial Analysts
(SFAF)
John Barrass
Vice President, Global Affairs – Europe, Association for
Investment Management and Research (AIMR)
Marcello Bianchi
Commissione Nazionale per le Società e la Borsa
(CONSOB, the Italian securities markets regulator)
David Cooper
Head of Equities Compliance, HSBC, London
Volker Firchau
Head of corporate bond research, Bayerische Landesbank
Bruno Gizard
Deputy Secretary General, Conseil des Marchés Financiers
(CMF, the French securities markets regulator)
Paul Goldschmidt
Consultant, former Director of the Financial Operations
Service, European Commission
Howard Jones
Saïd Business School, Oxford University
Dr Wolfgang Kirsten
Managing Director Asset Management, Union Investment
Luxembourg
Ignacio Gómez Montejo
Managing Director, Investment Team, International Capital
Research and ex-member of Board of Directors of Spanish
Institute of Financial Analysts
Andreas Neubauer
Head of Equity Research Germany, Deutsche Bank AG,
Frankfurt
Fergal O’Driscoll
Managing Director, Global Investment Research, Goldman
Sachs International, London
Jean-Pierre Paelinck
Secretary-General, Euroshareholders
Derry Pickford
Economic Analyst, Smithers & Co
Michiel Plakman
Robeco North America Equity Fund and President of
Netherlands Society of Investment Professionals
John Plender
Journalist, Financial Times
Fritz H Rau
Chairman of the European Federation of Financial Analysts
Societies (EFFAS) and Chairman of the DVFA (German
Society of Investment Analysis and Asset Management)
Board of Directors
Penelope Tham
Director, Global Equities Compliance, Deutsche Bank,
London
Pascal Thébé
Head of Actuarial, Product and Marketing Dept, AXA France
Assurance
Giampaolo Trasi
Director Asset Allocation, IMI & Deputy Chairman, Italian
Society of financial analysts (AIAF)
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