Brussels, 28th November 2002
Financial analysts: first meeting of new experts group
The European Commission's new Forum Group on Financial Analysts met for the first time on 27th November in Brussels and elected as its Chair Ian Mackintosh and as Vice-chair Bernard Coupez. The group will make recommendations on the best regulatory and market practice framework for financial analysts within an integrated European capital market. The Forum Group has been set up by the Commission in response to the conclusions of the informal meeting of Economics and Finance Ministers at Oviedo in April 2002 (see IP/02/584).
Internal Market Commissioner Frits Bolkestein said: "Investors need quality research and analysis to help them make investment decisions and feel confident that analysts' recommendations are soundly-based and objective. There has been considerable debate over the past year or so about the objectivity of analysts carrying out research in major investment banks. This has been highlighted in particular by a number of recent cases in the US, where business concerns in other parts of the firm appear to have compromised analysts' work. This group will advise the Commission on how best to ensure high standards of analyst integrity and objectivity so that investors throughout the EU can benefit from high quality research."
In today's financial markets, investment research is used in a variety of situations. It is often published and so available to a wide range of companies and individuals making investment decisions. In particular, it is used to guide investment decisions made by pension funds and insurance companies. But increasingly, research has also played an important role in generating investment banking business, which can lead to conflicts of interest for the analysts concerned.
Recently agreed EU legislation and legislative proposals the Market Abuse Directive (see IP/02/1547) and the proposed Investment Services Directive (IP/02/1706) will introduce some regulatory provisions which affect analysts.
This market-focused group will examine the role played by investment research and the different interests of the various stakeholders such as securities issuers, investment banks, brokers and investors. It will report its findings to the Commission services within six months. The group will focus in particular on:
The members of the group are:
Head of Global Research, BNP Paribas Asset Management and President of French Society of Financial Analysts (SFAF)
|John Barrass||Vice President, Global Affairs Europe, Association for Investment Management and Research (AIMR)|
|Marcello Bianchi||Commissione Nazionale per le Società e la Borsa (CONSOB, the Italian securities markets regulator)|
|David Cooper||Head of Equities Compliance, HSBC, London|
|Volker Firchau||Head of corporate bond research, Bayerische Landesbank|
|Bruno Gizard||Deputy Secretary General, Conseil des Marchés Financiers (CMF, the French securities markets regulator)|
|Paul Goldschmidt||Consultant, former Director of the Financial Operations Service, European Commission|
|Howard Jones||Saïd Business School, Oxford University|
|Dr Wolfgang Kirsten||Managing Director Asset Management, Union Investment Luxembourg|
|Ignacio Gómez Montejo||Managing Director, Investment Team, International Capital Research and ex-member of Board of Directors of Spanish Institute of Financial Analysts|
|Andreas Neubauer||Head of Equity Research Germany, Deutsche Bank AG, Frankfurt|
|Fergal O'Driscoll||Managing Director, Global Investment Research, Goldman Sachs International, London|
|Jean-Pierre Paelinck||Secretary-General, Euroshareholders|
|Derry Pickford||Economic Analyst, Smithers & Co|
|Michiel Plakman||Robeco North America Equity Fund and President of Netherlands Society of Investment Professionals|
|John Plender||Journalist, Financial Times|
|Fritz H Rau||Chairman of the European Federation of Financial Analysts Societies (EFFAS) and Chairman of the DVFA (German Society of Investment Analysis and Asset Management) Board of Directors|
|Penelope Tham||Director, Global Equities Compliance, Deutsche Bank, London|
|Pascal Thébé||Head of Actuarial, Product and Marketing Dept, AXA France Assurance|
|Giampaolo Trasi||Director Asset Allocation, IMI & Deputy Chairman, Italian Society of financial analysts (AIAF)|