Regulatory Alerts2007-12-21 | Interpretation of certain terms used in section 31 (2) sentence 4 and section 34b of the Securities Trading Act in conjunction with the Financial Analysis RegulationBaFin Letter on the Interpretation of Financial Analysis Terms under Sections 31 and 34b of the Securities Trading Act
The Federal Financial Supervisory Authority (BaFin) issued this letter to clarify the application of sections 31 and 34b of the Securities Trading Act alongside the Financial Analysis Regulation. It defines financial analyses in both narrower and broader senses, specifying that they must convey detailed consideration of instruments or issuers through direct or indirect investment recommendations intended for public distribution. The guidance also establishes compliance standards for marketing communications, mandates the disclosure of conflicts and financial interests, and recommends that issuers refrain from covering analysts' travel costs to prevent potential biases.
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