INMA S4.5 Investment research recommendations — requirements for dissemination of third party recommendations

(1) If a research recommendation produced by a third party is substantially changed before dissemination by an INMA firm, the firm must ensure that:
(a) the disseminated material clearly describes the change in detail;
(b) if the change consists of a change of the direction of the recommendation (for example, changing a 'buy' recommendation into a 'hold' or 'sell' recommendation), the firm complies with section S4.3 to the extent of the change, as if the firm were the producer of the research recommendation; and
(c) it has a formal written policy under which the persons receiving the research recommendation are directed to where they can have access to the identity of the producer of the research recommendation, the research recommendation itself, and the disclosure of the producer's interests or conflicts of interest, to the extent that they are publicly available.
(2) Subrule (1) does not apply in relation to news reporting on research recommendations produced by a third party if the substance of the research recommendation is not changed.
(3) If an INMA firm disseminates a summary of a research recommendation produced by a third party, it must ensure that the summary:
(a) is fair, clear and not misleading;
(b) identifies the source research recommendation; and
(c) identifies where the third party's disclosures (to the extent that they are publicly available) relating to the source research recommendation can be directly and easily accessed (for example, by a hyperlink to the disclosures on an appropriate web page of the firm).
Inserted by QFCRA RM/2019-4 (as from 1st January 2020).