Analysts will be required to certify that their research reports are truthful and accurate, thanks to a new rule approved Thursday by the
Securities and Exchange Commission
, media reports said.
The regulation requires analysts to certify that the views they give in research reports are really their own, and analysts also must disclose any compensation they receive that might influence their recommendations.
Wall Street brokerages have been in hot water for issuing positive reports on stocks that analysts privately badmouthed. The SEC in December unveiled plans for a settlement with about a dozen Wall Street firms for alleged conflicts of interest that involved analysts.
SEC Chairman Harvey Pitt said the new rule should help make investors more confident about analysts' recommendations.