As a result of the alleged conflicts of interest between analysts and underwriting,which of the following changes were implemented?
I. Analysts cannot participate in nor attend certain presentations to potential investors conducted by investment bankers associated with underwriting an issue.
II. Analyst compensation can no longer be tied to the amount of underwriting business a firm generates.
III. Securities firms must divest stock research divisions to ensure independence from their investment banking business.

Question

Quizplus · Accepted Answer

I and II are correct. Analysts were restricted from participating in presentations to avoid conflicts of interest, and their compensation was decoupled from the firm's underwriting business to ensure their analyses remained unbiased. However, there was no requirement for firms to divest their stock research divisions entirely.

As a Result of the Alleged Conflicts of Interest Between