The New York attorney general has secured an agreement with BlackRock to permanently discontinue the practice of systematically surveying analysts for their opinions on firms they cover.
The attorney general’s office says the design, timing and structure of the surveys allowed BlackRock to obtain information that could be used to get ahead of future analyst revisions.
“Our agreement with BlackRock to end its global analyst survey program and co-operate with my office’s Wall Street-wide investigation into the early release of analyst sentiment is a major step forward in ensuring fairness to our financial markets and ensuring a level playing field for all investors,” says attorney general Eric Schneiderman.
BlackRock has agreed to pay US$400,000 for the cost of the investigation but didn’t face a fine or penalty. The company also didn’t admit or deny the allegations.
Barclays Global Investors developed the survey program in 2003. That company was acquired by BlackRock in 2009.
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