Critics slam limits on independent research

Crawford, Gregory
October 2005
Pensions & Investments;10/31/2005, Vol. 33 Issue 22, p4
This article reports that money managers could be shortchanging their investors by limiting the amount of independent investment research they are willing to pay for, critics of such limitations charge. New guidance issued by the U.S. Securities & Exchange Commission (SEC) on using commissions to pay for research clearly puts independent research on par with brokerage house research. Scott Cleland, founder and chief executive officer of Precursor Group Inc., a Washington-based independent research firm, said that research is supposed to be paid based on performance and based on need. John D. Meserve, president of BNY Research, Commission and Payment Services LLC, New York, a unit of Bank of New York, remarked that there are deep-seated urban myths or a view that when the SEC does examinations, there's an acceptable level of what you pay for third-party research.


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