Reuters - U.S. securities regulators are examining weekly meetings at Goldman Sachs Group Inc, where research analysts offer tips to traders and then to big clients, the Wall Street Journal reported on its website.
Goldman will be asked to provide more information about the meetings by examiners from Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC), the paper said, citing people familiar with the matter.
The WSJ, citing internal Goldman documents, said the short-term tips given at the meetings differed from long-term research. In the distribution of trading tips, there have been no accusations of securities law violations against Goldman, the paper said.
It quoted a Goldman spokesman as saying: “We believe the disclosure we have now is entirely appropriate. Analysts are not allowed to express differing views without publishing that view.”
Goldman and FINRA could not be immediately reached for comment by Reuters.
SEC spokesman John Nester declined to comment on Goldman, but said, “as a general matter, broker-dealers have obligations to use research information properly, disclose conflicts of interests by research analysts, and ensure their publicly available research is consistent with privately expressed views.”