In response to motions filed by several major investment banks, the SEC agreed to modify certain long-standing restrictions placed on such banks as part of a court settlement (the “Global Research Analyst Settlement”) from 2003 and 2004. SEC Commissioners noted this action as an important step toward eliminating outdated and costly requirements on firms and improving the availability of equity research in the U.S. securities markets. The Global Research Analyst Settlement was a result of the dot-com bubble in the late 1990s that eventually burst. Investment bankers were alleged to have influenced research analysts, biasing their work product to attract investment banking business based on favorable company reports. The SEC, the then-NASD (now FINRA), the NYSE, the North American Securities Administrators Association, and the New York State Attorney General settled with 12 major broker-dealer firms for failing to manage conflicts of interest between their research analysts and investment bankers. The settlement required these broker-dealers to wall off research analysts from investment banking by undertaking several prescriptive measures. However, as a product of an enforcement action, these undertakings never went through a notice-and-comment rulemaking process. The very terms of the settlement itself contemplated that future rulemakings in this area would follow, and that the Commission should reevaluate its application over time. Since 2004, the regulatory framework in this area has developed dramatically. The SEC adopted Regulation AC, which generally requires research analysts to certify the truthfulness of the views they express in research reports and public appearances, and to disclose whether they have received any compensation related to the specific recommendations or views expressed in those reports and appearances. Additionally, in 2015, FINRA adopted Rule 2241, which sought to address the same conflicts of interest targeted by the Global Research Settlement, but in a more principles-based manner. SEC Commissioners highlighted the fact that since the settlement in 2004, there has been a lot less research out of Wall Street, particularly for small and medium-sized companies. The hope is that the action will increase coverage and the quality of research regarding such issuers.