Inconsistent Disclosure StandardsAnalysts registered solely with FINRA are not subject to CIRO disclosure requirements, creating inconsistent disclosure standards that can obscure potential conflicts or methods used in analysis.
Independence And Conflict ConcernsUse of non-FINRA-associated analysts covering the company may prompt investor concern about independence and potential undisclosed conflicts in some research notes.
Regulatory Oversight GapsCoverage produced by analysts not registered as FINRA research analysts reduces regulatory oversight of those notes, which may raise questions about the rigor of some research.