The U.S. Securities and Exchange Commission agreed to amend the Global Research Analyst Settlement by consenting to end undertakings that it characterized as outdated and costly, with the stated aim of improving the availability of sell-side equity research. The settlement originated from enforcement actions following the late-1990s dot-com period and imposed prescriptive measures on 12 major broker-dealers to separate research from investment banking to address conflicts of interest. The SEC noted that the regulatory framework has since evolved through SEC Regulation AC and FINRA Rule 2241, which addresses similar conflicts through a principles-based approach capable of being updated through notice-and-comment and applied consistently across member firms, alongside additional and sometimes conflicting requirements affecting U.S. firms that provide research to E.U. and U.K. asset managers. The Commission framed the amendment as reducing compliance friction and supporting broader research coverage, particularly for emerging growth and smaller public companies.
U.S. Securities & Exchange Commission 2025-12-05
U.S. Securities and Exchange Commission agrees to amend the Global Research Analyst Settlement by terminating legacy undertakings
The U.S. Securities and Exchange Commission (SEC) will amend the Global Research Analyst Settlement to eliminate outdated undertakings, enhancing sell-side equity research availability. Initially set to separate research from investment banking, the settlement's measures are now redundant due to evolved regulations like SEC Regulation AC and FINRA Rule 2241. The amendment aims to reduce compliance friction and expand research coverage, especially for emerging growth and smaller public companies.