{"id":13238,"date":"2011-11-16T10:11:06","date_gmt":"2011-11-16T00:11:06","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=13238"},"modified":"2021-04-15T10:20:05","modified_gmt":"2021-04-15T00:20:05","slug":"asic-proposes-tighter-regulation-of-researchers","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2011\/11\/16\/asic-proposes-tighter-regulation-of-researchers\/","title":{"rendered":"ASIC Proposes Tighter Regulation of Researchers"},"content":{"rendered":"<p>The Australian Securities and Investments Commission (ASIC) has released a consultation paper proposing tighter regulation of industry research houses.<\/p>\n<p><!--more-->The paper, titled &#8216;Strengthening the regulation of research report providers (including research houses)&#8217;, sets out a range of recommendations designed to manage conflict of interest and improve confidence in the independence and quality of research reports.<\/p>\n<p>The recommendations set out to address the following key issues, identified by ASIC during discussions with a select group of research houses, industry associations and their members:<\/p>\n<ul>\n<li>The incidence (or the perception of) conflict of interests potentially arising through research houses&#8217; revenue model, ancillary businesses and analyst arrangements<\/li>\n<li>The adequacy of skills and experience of research analysts in producing quality research, and<\/li>\n<li>The lack of transparency and comparability for research methodology<\/li>\n<\/ul>\n<p>ASIC said it also identified an apparent &#8216;expectations gap&#8217; between financial advisory firms and research houses about the nature and role of research in its review. \u00a0In particular, advisers expressed a view that research houses should undertake more in-depth research, whereas some research houses saw their role as providing product coverage for a range of products in each market segment and identifying the &#8216;best of breed&#8217; products.<\/p>\n<h6>Research can influence which products individual advisers recommend to their clients<\/h6>\n<p>ASIC Chairman, <strong>Greg Medcraft<\/strong>, said research was an important consideration for ASIC in light of its priority to promote confident and informed investors.<\/p>\n<p>&#8220;Research can influence which products individual advisers recommend to their clients&#8221;, Mr Medcraft said.<\/p>\n<p>&#8220;As such, the quality of research and the conduct of research houses have a material impact on the integrity of the financial planning industry, and the quality of the advice they produce.&#8221;<\/p>\n<p>Submissions in response to the consultation paper are due on 3 February 2012.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Australian Securities and Investments Commission (ASIC) has released a consultation paper proposing tighter regulation of industry research houses.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-13238","post","type-post","status-publish","format-standard","category-compliance-regulation"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/13238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=13238"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/13238\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=13238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=13238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=13238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}