A REPORT on the independence of research analysts within the banking industry by the Australian Securities and Investments Commission has identified that while Australia was not likely to face the "extent and serious misconduct that occurred in the US", there are a number of compliance issues that need addressing.
The review was established to consider the extent to which investment banks identified and managed "conflicts of interest".
Some of the compliance issues identified include the deficiencies relating to the management and disclosure of conflicts of interest with the investment banking industry and that industry guidelines developed by the Securities and Derivatives Association and the Securities Industry of Australia had not been adopted as fully as had been intended.
ASIC executive director of financial services regulation Ian Johnston said the review was conducted as a surveillance campaign rather than an investigation.
"While none of the findings in the report are indicative of breaches of the law, ASIC cannot say that the industry is without flaw or is immune from misconduct because its review was necessarily limited to a sample selection of entities and a limited period of time," he said.
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