Series 24: Disclosure Requirements

Disclosure Requirements

A member firm must disclose in research reports and a research analyst must disclose in public appearances:

1. 1. whether the analyst or a family member has a financial interest in the securities of the subject company and the nature of that interest
2. 2. whether the member firm or its affiliates have owned 1% or more of the company’s common stock as recently as the month previous to the report or appearance

A member firm must disclose in research reports:

1. 1. whether the analyst has received compensation from the subject company during the past 12 months or from the firm’s own investment banking revenues
2. 2. whether the firm or any affiliate has participated in managing a public offering of securities or been paid for investment banking services from the subject company over the past twelve months or expects to be compensated over the next three months. If a firm or an affiliate has been paid for services other than investment banking or been a client of the subject company over the past twelve months, the firm must disclose what types of services it has provided.

A research analyst must disclose in public appearances:

1. 1. whether the member firm or an affiliate has received compensation from the subject company over the past 12 months
2. 2. whether the analyst has received compensation from the subje