Who knows. I guessin soft dollar standards with a hint of prudent investor rule
ROS with Soft dollars is for certain since these are unique to level two. sprinkle in some of the regular stuff too. remember that for a research analyst compensation: according to ROS The compensation should be based off of accuracy of forecast at time of recommendation and a year or so later. You need to compensate them not only for making an investment recommendation that is suitable, but also for making recommendations that perform over time. You may tie their compensation to the overall performance of the company but NOT to investment banking activity if they (or a team they are on) have to with that or corp finance.
have a question. If the analyst compensation is based off of accuracy of the forecast and company performance, but almost all of company revenues come from IB, this is ok? As long as the analyst doesn’t work with IB?
justinkc Wrote: ------------------------------------------------------- > have a question. > > If the analyst compensation is based off of > accuracy of the forecast and company performance, > but almost all of company revenues come from IB, > this is ok? As long as the analyst doesn’t work > with IB? If it’s based on company revenues, its fine. If its based solely on IB revenue, that is not fine.
what is ROS?
slugamon Wrote: ------------------------------------------------------- > what is ROS? Research Objectivity Standards