Activity Quote by Mary Schapiro
“Brokerage firms and their executives cannot use threats regarding research activities as a way to obtain investment banking business. The threat to drop research coverage if Piper were not selected as the lead underwriter for a secondary offering was totally inappropriate and undermines the integrity of the market.”
About This Quote
Source Regulatory hearing: SEC, 2018
Using research threats to coerce banking business compromises market integrity.
In simple terms: Threats to research undermine fair markets.
Key Takeaway
Uphold ethical standards in finance.
Themes
finance
ethics
regulation
Mood
serious
concerned
Type
policy
educational
When to use this quote
- investment banking negotiations
- anal coverage
- compliance training
Key Concepts
conflict of interest
market abuse
research independence
Questions to Reflect On
- How can firms ensure research independence?
- What penalties deter coercive practices?
A Different Perspective
Enforcement may be limited without whistleblower protections.
![“[Adviser is] the ones who do the job very well are the ones who lay out the range of options, filter down the range of options that are available to the president, lay them out in an honest, brokerage way and then let the president make the choice among those options.” quote by Lawrence O'Donnell](https://sms4smile.com/quotes/img-quotes/c4c/lawrence-o-donnell-1701_adviser_adviser-is-the-ones-who-do-the-job-very_910002.jpg)
