Investment Banking research Analyst
The aim of FINRA's equity and debt research analyst and research report rules is to foster objectivity and transparency in research reports and public appearances and provide investors with more reliable and useful information to make investment decisions.
In general, FINRA's equity and debt research rules require clear, comprehensive and prominent disclosure of conflicts of interest in research reports and public appearances by research analysts. The rules further prohibit certain conduct where the conflicts are considered too pronounced to be cured by disclosure. Several of the equity research rules' provisions implement provisions of the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley"), which mandates separation between research and investment banking, proscribes conduct that could compromise a research analyst's objectivity and requires specific disclosures in research reports and public appearances. FINRA's equity research rules also conform to the JOBS Act (The Jumpstart Our Business Startups Act) of 2012.
The following FINRA rules apply to research analysts, research reports, and the registration of research analysts and research principals.
Research Analysts and Research Reports
These rules require equity research analysts to be registered with FINRA and pass a qualification examination or obtain a waiver. The Series 86 / 87 - Research Analyst Qualification Examinations (RS) assess the competency of an entry-level equity research analyst candidate to perform the critical job functions of a research analyst, including preparing and analyzing equity securities or individual companies and industry sector research reports.