Goldman Analysts Barred

As ethics and integrity in the City continue to be at the forefront of investor's minds, Goldman Sachs has now confirmed that it has prohibited research analysts from buying shares in companies they cover. If they already own shares, they are not permitted to dispose of them unless they have issued a general 'sell' notice to clients.

Previously the company's 250 or so analysts were required to state in their research reports whether they or any family members owned stock in the companies mentioned.

Goldman had now tightened its rules in line with the actions already taken by Merrills and Morgan Stanley, who have seen high-profile analysts hit in the past with shareholder lawsuits over allegations of biased research.