ASIC moves to simplify sell-side research guidance to support capital raising activity | ASIC

The update concerns ASIC's streamlined guidance on conflict of interest management, research integrity, and analyst independence in sell-side research, which are core conduct of business obligations for AFS licensees.

Mandatory inheritance: Conduct of Business is a child of Governance, so Governance must be raised as the secondary tag.

The update concerns sell-side research guidance for investment banks and stockbrokers assisting clients with investment decisions, particularly IPOs, which relates to advisory and dealing services but does not directly regulate a specific retail product.

The update mentions research to assist with investment decisions and capital raising, which touches on share dealing and equity investment processes, though the guidance is primarily procedural rather than product-specific.

The update proposes streamlined principles-based guidance on conflict-of-interest management, research integrity, and analyst independence for sell-side research, which relates to Controls Implementation obligations around managing identified risks through practical arrangements.

The update also addresses governance-level expectations for AFS licensees to establish and maintain effective arrangements for managing conflicts and preserving research independence, which touches on Governance and Oversight accountability, though the primary focus is on the practical control arrangements themselves.

The update concerns sell-side research guidance for investment banks and stockbrokers assisting clients with investment decisions, particularly IPOs, which relates to investment advice and dealing activities, though the primary focus is on regulatory guidance simplification rather than a specific business activity mandate.

The guidance also addresses research analyst participation in IPO capital raising and order execution processes, making investment dealing a secondary consideration, though the update's emphasis on guidance principles rather than specific operational changes limits confidence.

The update concerns ASIC's streamlined guidance on conflict-of-interest management, research integrity, and analyst independence obligations for sell-side research providers, which reflects conduct-of-business standards for how investment firms must behave when producing research and advising clients.

The emphasis on managing conflicts of interest and preserving research independence in the IPO and capital-raising context also touches on best-execution and fair-dealing principles that underpin investment conduct standards.

Compliance functions must interpret and monitor adherence to the revised sell-side research guidance, including conflict-of-interest management, inside-information handling, and analyst-independence obligations under the principles-based framework.

Legal teams will need to review contractual arrangements and governance structures for research analysts to ensure compliance with the updated conflict-of-interest and independence requirements, though this is a supporting rather than primary obligation.