Rapid Ratings wins Lehman Bros contract
Corporate credit and equity risk rating agency Rapid Ratings has won a lucrative contract to provide global investment bank Lehman Brothers with independent equity research.
The Brisbane-based agency, which is 70 per cent owned by debt collector firm Collection House, will provide Lehman Brothers with composite risk reports which combine share price and credit rating trends to identify equity buy, sell or hold signals for clients.
The contract win for Rapid Ratings comes as the US Securities and Exchange Commission moves to impose new regulations forcing US broking firms to include independent second opinions when offering clients advice from their own research departments.
The new regulations are part of “The Global Settlement” where 10 top Wall Street firms, accused of conflicts of interest between their investment banking and research departments, have been forced by the US Attorney General to cough up US$430 million ($623 million) to fund independent research for investors.
A spokesperson for Rapid Ratings could not confirm the monetary value of the contract but says the agency will be employing at least one extra analyst to take on the new work load associated with the deal.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
