Back Custom print Link Text Only Rich Text Print

  • Investment Research

    • BC-8.12.8

      Where a conventional bank licensee issues investment research, its conflict of interest policy must specify the types of investment research issued by it. A conventional bank licensee that prepares and publishes investment research must have adequate procedures and controls to ensure:

      (a) The effective supervision of investment analysts by following at the very least the items listed in Paragraph BC-8.13.11;
      (b) That any actual or potential conflicts of interest are managed in accordance with Rule BC-8.12.1; and
      (c) That the investment research issued to customers is not biased.

      Added: April 2008

    • BC-8.12.9

      Conventional bank licensees that publish investment research must take reasonable steps to ensure that the investment research:

      (a) Identifies the types of customers for which it is principally intended;
      (b) Distinguishes fact from opinion or estimates, and includes references to sources of data used;
      (c) Specifies the date when it was first published;
      (d) Specifies the period the ratings or recommendations are intended to cover;
      (e) Contains a clear and unambiguous explanation of the rating or recommendation system used;
      (f) Includes a price chart or line graph depicting the performance of the financial instrument for the period that the conventional bank licensee has assigned a rating or recommendation for that financial instrument, which must also show the dates on which the ratings were revised; and
      (g) Includes a distribution of the different ratings or recommendations, in percentage terms:
      (i) For all financial instruments in respect of which the conventional bank licensee publishes investment research; and
      (ii) For financial instruments, if any, where the conventional bank licensee has undertaken corporate finance business with or for the issuer over the past 12 months.

      Added: April 2008

    • BC-8.12.10

      A conventional bank licensee must take reasonable steps to ensure that when it publishes investment research, disclosure is made of the following matters:

      (a) Any financial interest or material interest that the investment analyst or a close relative has, which relates to the financial instrument;
      (b) Any shareholding by the conventional bank licensee or its associate of 1% or more of the total issued share capital of the issuer;
      (c) Whether the conventional bank licensee or its associate acts as corporate broker for the issuer;
      (d) Any material shareholding by the issuer in the conventional bank licensee;
      (e) Any corporate finance business undertaken by the conventional bank licensee with or for the issuer over the past 12 months, and any future relevant corporate finance business initiatives; and
      (f) Whether the conventional bank licensee is a market maker in the financial instrument.
      Amended: January 2011
      Added: April 2008

    • BC-8.12.11

      If a conventional bank licensee acts as a manager or co-manager of an initial public offering or a secondary offering it must take reasonable steps to ensure that it does not publish investment research relating to the financial instrument during the period beginning on the day of publication of the listing particulars or a prospectus relating to the offering of that financial instrument and ending on the 30th calendar day after the day on which the financial instrument is admitted to trading.

      Amended: January 2011
      Added: April 2008

    • BC-8.12.12

      A conventional bank licensee and its associates must not knowingly execute an own account transaction in a financial instrument, which is the subject of investment research, prepared either by the conventional bank licensee or its associate, until the customers for whom the investment research was principally intended have had a reasonable opportunity to act upon it.

      Amended: January 2011
      Added: April 2008

    • BC-8.12.13

      The restriction in Rule BC-8.12.11 does not apply if:

      (a) The conventional bank licensee or its associate is a market maker in the relevant financial instrument;
      (b) The conventional bank licensee or its associate executes an unsolicited transaction for a customer; or
      (c) It is not expected to materially affect the price of the financial instrument.

      Added: April 2008