LONDON, July 7 Britain's finance industry
watchdog is reviewing letters received from bankers regarding
the conduct of independent advisers towards company analysts
during stock market listings, a source familiar with the matter
said on Monday.
A report in the Sunday Times said that the Financial Conduct
Authority was considering launching an inquiry into advisers,
following complaints from major banks that they had attempted to
influence the views of independent research analysts on the
companies they are helping to list.
The source said that the FCA had received letters and was
reviewing them in line with normal practice. The FCA had not yet
decided whether to launch an investigation, the source said.
Advisers, such as Lazard, Rothschild and STJ Advisors, help
to choose banks to handle a stock market listing and the
advisers also guide the company that is listing through the
Their role has come under the spotlight as the European
initial public offerings (IPO) market surges, more than tripling
in 2014 against the same period last year according to Thomson
Bankers said advisers, who are allowed to meet with
independent analysts during the listing process, have a level of
influence over them which they themselves are not allowed to
have. Traditionally advisers provide analysts with information
on the company.
(Reporting by Freya Berry. Editing by Alexander Smith and Jane