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US fallout on UK analysts

Are UK investment analysts little more than the salesmen for corporate finance arms of investment banks that some of their US colleagues have proved? Howard Davies, FSA chairman and consummate diplomat, did not go that far in his comments on the publication of CP171 “Conflicts of interest: investment research and issues of securities” last month “but we have found evidence of systematic bias in analyst recommendations, and of bad management of conflicts of interest,” he admitted.

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