INMA 9B.1.2 Research recommendations — basic requirements
(1) An INMA firm:
(a) must take reasonable care to ensure that a research recommendation produced or disseminated by it in relation to relevant investments is presented fairly and is not misleading; and
(b) must disclose any conflicts of interest or material interests that the firm has in relation to the relevant investments.
(2) An INMA firm, in any research recommendation produced by it:
(a) must disclose clearly and prominently the identity of the person responsible for its production, and in particular:
(i) the name and job title of the individual who prepared the research recommendation; and
(ii) the firm's name; and
(b) must include the firm's regulatory status in a form required by GENE, Part 3.1.
(3) The firm may comply with subrule (2) in relation to a non-written research recommendation by referring to the place where the disclosures can be easily accessed (for example, the INMA firm's website).
(4) If an INMA firm produces or disseminates a research recommendation, the firm must take reasonable care to ensure that:
(a) facts in the research recommendation are clearly distinguished from interpretations, estimates, opinions and other types of non-factual information;
(b) its sources for the research recommendation are reliable or, if there is any doubt about whether a source is reliable, this is clearly indicated;
(c) all projections, forecast and price targets in the research recommendation are clearly labelled as such and the material assumptions made in producing or using them are indicated; and
(d) the substance of the research recommendation can be substantiated as reasonable if the Regulatory Authority so requests.
(5) Subrule (4) does not apply to a non-written research recommendation if its requirements would be disproportionate to the length of the research recommendation.
|Inserted by QFCRA RM/2019-4 (as from 1st January 2020).|