NEW YORK - Credit Suisse First Boston said Monday that it would prohibit research analysts from owning securities in companies they cover and that any such securities they now own must be sold by Sept. 30.
The unit of Zurich's Credit Suisse Group is the second investment bank to issue such a policy. Merrill Lynch & Co. made a similar announcement last week.
Credit Suisse First Boston said the policy applies to equity and fixed-income research analysts, research associates, and other members of an individual analyst's team, as well as spouses, partners, minor children, or other dependents. There may be some exceptions to the Sept. 30 deadline if it would impose "undue financial penalties" on the analysts, the company said.
The CSFB and Merrill announcements came in the wake of public and governmental uproar over conflicts of interest that may compromise investment banks' research reports.
Since the collapse of the bull market last year, politicians and private investors have been accusing Wall Street of misleading investors by not disclosing whether they owned stocks they were recommending. Such recommendations conceivably could win their firms lucrative investment banking business.