New York Financial Planning Newsroom

As A Part Of This Settlement, Final Judgments Were Entered

The U.S. Securities and Exchange Commission ("SEC"), NASD, Inc. ("NASD), the New York Stock Exchange, Inc. ("NYSE"), and state regulators conducted investigations of potential conflicts of interest in equity research analysis that culminated in the Global Research Analyst Settlement. As a part of this Settlement, Final Judgments were entered on October 31, 2003 and September 24, 2004 in the federal court action between the SEC and twelve financial institutions and two individuals ("Settling Parties"). The website http://www.sec.gov/spotlight/globalsettlement.htm contains links to all of the Final Judgments and Orders entered in the SEC's actions and related information regarding the Global Research Analyst Settlement. The Global Research Analyst Settlement included the following components: (1) structural reforms in the relationship between investment banking and research; (2) approximately $85 million for investor education programs; (3) approximately $450 million for independent investment research; (4) approximately $500 million paid to the states; (5) twelve separate distribution funds totaling $432.75 million created in the SEC actions,' which consist exclusively of monies paid in resolution of the actions brought by the SEC, NASD, and NYSE; and (6) a provision for investors to pursue, to the extent otherwise available, any other remedy or recourse against a Settling Party. The Final Judgments established twelve separate funds for investors who purchased specified stocks through a "Settling Firm" during specified time frame. Appendix A identifies the name of the Settling Party, the size of the fund, the names of the relevant equity securities purchased through each Settling Firm, and the relevant period of purchase of those stocks. The maximum amount available for distribution in each separate fund is limited to the money contained in that fund. The Final Judgments specify the two threshold requirements for an investor to qualify as a fund recipient: 1) The investor must have purchased one of the equity securities listed in Appendix A through a Settling Firm during the relevant period for that security. Court Orders provide the relevant stocks and time periods for the purchase of each security listed in Appendix A for each Distribution Fund. 2) The investor must have suffered a net loss on that stock purchase.

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