Toughen up

Analysts working for stockbrokers should be subject to tough regulations, according to the Irish Association of Investment Managers.

IAIM secreatry general Anne Fitzgerald said that the precedents set in the U.S. were important warning signs for the industry.

Merrill Lynch recently paid $100 million to settle claims that analysts misled investors.

Fitzgerald said that there is concern that analysts in Ireland are less than objective about their advice.

“You often get ‘hold’ or ‘long-term hold’ but rarely a ‘sell’ recommendation,” she said.

“There should be a discussion on whether analysts employed by stockbrokers should be allowed to hold shares. Over the years some of them have made a lot of money on their investments.”