Regulators in various regions have recently asked securities firms and other related institutions to strengthen their management of public commentary, particularly from chief economists, securities analysts, and fund managers. The move aims to enhance the regulation of public statements, emphasizing the need for professionals to adhere to industry standards and avoid making provocative comments or compromising their integrity for the sake of attention or catering to hot topics. The rules also stress the importance of maintaining a professional stance and avoiding the temptation to push boundaries in pursuit of popularity.
In response, some investment banks have issued internal circulars to reinforce the management of their analysts, emphasizing the need for them to uphold their professional code of conduct, focus on research reports as the sole source of opinion, and resist the urge to sensationalize their comments for the sake of attracting clients or conforming to the latest trends.
While this new regulatory push may impact some experts, several chief economists in this group seem to believe that they are not bound by these restrictions.