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New Regulation Analyst Certification Rules: Regulation AC

March 01, 2003

By Investment Management Practice Group

In February 2003 the Securities and Exchange Commission adopted Regulation Analyst Certification which requires that brokerdealers, and certain persons associated with a broker-dealer, include in research reports certifications by the research analyst that (a) the views expressed in the report accurately reflect the analyst’s personal views and (b) disclose whether or not the analyst received compensation or other payments in connection with specific recommendations or views. Regulation AC also requires brokerdealers to obtain periodic certifications by research analysts in connection with the analysts’ public appearances. By requiring these certifications and disclosures, Regulation AC is intended to “promote the integrity of research reports and investor confidence in those reports” and to enhance investors’ ability to evaluate the utility of analyst reports to their investment decisions.

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