Exclusive: Hong Kong to standardise pre-deal research

Author: | Published: 28 Oct 2011

Hong Kong’s investment banking sector is set to change forever with an industry-wide standardisation of pre-deal research processes, IFLR can reveal.

The move is being orchestrated by a specially-formed consortium of 20 of the city’s largest investment banks including Goldman Sachs, Credit Suisse, HSBC, JP Morgan, Bank of America Merrill Lynch, UBS and Citi . It will include the introduction of industry-standard documentation as well as best practice guidelines governing interaction among all parties to an offering, including issuer companies, counsels and research analysts.

It will come into effect on October 31 in conjunction with the introduction, by Hong Kong’s Securities and Futures Commission (SFC), of new pre-deal research rules which will further expand the scope of conflicts-of-interest requirements governing analyst conduct when preparing investment research reports.

One Hong Kong general counsel close to the matter told IFLR the introduction of new rules had provided the sector with...