Wednesday, October 19, 2005

Are Your Research Analysts Registered?

Last year the NASD required research analysts to be registered with NASD after passing new research analyst examinations. Existing analysts were granted a one year grace period for the new registration requirements, *if* the firm applied for the registration in a timely fashion.

The NASD is now instituting actions against firms who have not registered their analysts, and announced a fine of $150,000 against Green Street Advisors for not registering their analysts.

Aside from demonstrating that the NASD is serious about registration, the case demonstrates the need for compliance. The NASD made a point of stating that the firm continued to allow the analysts to issue reports (104 of them to be exact) AFTER the firm was aware of its failure to register the analysts.

No doubt that the continuation of the prohibited practice after notice added to the severity of the fines.
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