1. Increase awareness of the financial interests behind investment research
- Investorside Research is created purely for the purpose of supporting investment decisions through objective research; while "Company-Side Research" is created for the primary purpose of selling companies' securities to investors, a potential financial conflict with investor interests.
2. Educate investors to promote better research alignment with their interests
- Inform investors how their assets currently fund and perpetuate research conflicts.
- Encourage investors and pensioners to seek more transparency and accountability over how their portfolio commissions are spent on research and how credit ratings are funded.
3. Promote truth in advertising and fair representation of investment research to investors
- Disclosure of research conflicts alone is insufficient; what's most important is that research should not be represented or marketed as objective or independent, if it is not.
- If "research" is oriented toward enhancing investment banking or promoting trading advantages, it should be so labeled prominently, like printed advertisements are in the news media to ensure no confusion.
4. Reduce regulatory and industry barriers to competition
- Ensure regulations and industry practices do not protect and perpetuate the entrenched dominance of company-side research from Investorside research competition.
- Enable market forces and competition to meet investor demand for objective research, while remaining vigilant to anti-competitive behavior.
5. Promote "Best Research Payment Practices"
- Un-bundle research from banking and proprietary trading through more transparency and official separate accounting/reporting of research, trading and banking, revenues and expenses.
- Ensure payments disclosed as compensation for research services actually go to research and are not diverted for other services.