New capability provides due diligence on compliance policies and practices of
investment research firms
New York – Integrity Research Associates LLC announced today a new offering to help asset managers assess the risks associated with external research providers. The new service, Integrity ResearchCompliance(SM), conducts in-depth reviews of the compliance policies and procedures of investment research firms.
“The insider trading investigations have heightened concerns about the compliance capabilities of external research providers,” said Michael Mayhew, Integrity’s founder and Chairman. “Our new service gives investors a level of transparency that is hard to replicate on their own.”
Integrity ResearchCompliance(SM) conducts in-depth reviews of the safeguards put in place to prevent the dissemination of inside information and trading violations such as front-running, as well as examining controls on potential business conflicts and the overall compliance culture of the firm.
“The hardest thing for an investor to assess is how diligently written policies are being followed,” said Susan Mathews, a former S.E.C. lawyer who is heading up the new initiative. “During our review, we speak with current and former employees and seek out concrete evidence of what firms are actually doing. Policies are important, but ultimately it is the practices that are critical.”
Mathews recently joined Integrity Research to head up its new compliance practice. She began her S.E.C. career as Senior Counsel and Deputy Ethics Liaison for the Office of Chief Counsel in the Enforcement Division, before being asked to be the regulator liaison for the Global Research Analyst Settlement. In this capacity, she was the point of contact for the twelve investment banks and their independent consultants implementing the independent research provisions of the Settlement.
Integrity also announced that Thomas Sablosky has joined the firm as Vice President, Business Development. Sablosky was previously President of TreeTop Capital Management and Managing Director of Dalton Investments.
Integrity’s new service also provides benefits to research providers. Michael Mayhew explains, “In the wake of the insider trading investigation many asset managers have become reticent about using independent research of any kind. Our new service will help research firms reassure clients and prospective clients about the strength of their compliance platforms.”
Integrity ResearchCompliance is a service mark of Integrity Research Associates LLC.