BusinessBusiness

Nomura Acts Over Analysts

Nomura has confirmed it will introduce restraints on the flow of information between securities' analysts and staff in charge of underwriting public share offerings, following the allegations against brokerage houses in the States of issuing biased stock research.

The move is intended to quell any suspicion that its analysts might over-rate the performance of companies whose shares the brokerage firm is trying to sell.

Japan's Nihon Keizal Shimbun newspaper has also said that the firm will introduce US qualified supervisors to check analysts' reports for accuracy and objectivity.

The moves come after Japan's Securities Dealers Association called on member frims to do more to ensure the independence of their analysts.

Rival Nikko Salomon Smith Barney is also to bring in similar new procedures.

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