All regulated firms who publish research would be required to publish a policy explaining how they manage conflicts of interests in their business, said the FSA in new proposals.
It said firms without such policies would not be allowed to claim or imply that they were producing objective, unconflicted research on designated investments, including shares, fixed income and derivatives.
Under the proposals, senior managers would be responsible for developing and implementing conflict management policies, which would have to comply with key standards developed by the FSA.
It said analysts should not be involved in any activity that could conflict with their ability to produce objective research, such as attending road shows or pitches. Other standards include not allowing someone with conflicting responsibilities to supervise an analyst or decide on the content of research.
The consultation period for these proposals runs until 24 December 2003, with the aim that firms will have implemented the new rules by the summer of 2004.
