BAS fined $26m for false research reporting


BAS will pay $26 million in disgorgement penalties and agree to a censure and a cease and desist order. The SEC found that BAS experienced a breakdown in internal controls to detect and prevent misuse of its research reports by the firm and its employees between January 1999 and December 2001.

Despite BAS sales and trading employees knowing of forthcoming research changes involving upgrades and downgrades, BAS failed to provide clear guidance regarding the handling of the research, and on at least two occasions traded before the research reports were issued. The SEC also concluded that BAS failed to address conflict of interest issues that compromised the independence and integrity of its analysts.

BAS will henceforth retain an independent consultant to conduct a review of the firm's internal controls and prevent the misuse of information regarding forthcoming research reports.

BAS neither confirmed nor denied the Commission's findings.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here