Ann: 1-Page Quarterly Commentary and Appendix 4C - 31 Jan 2016, page-23

Sure - technically ECM and research are separate, but in my experience the smaller the broker the more the blur. Plus there are quite a few smaller brokers who make more money off ECM deals than commissions. A value add for a smaller broker (to help win/keep the deal/s) is that they will cover the stock when the big guys won't. There is a clear conflict of interest.

I don't think it is a coincidence when as is often the case:

- a bank IPOs a company -> positive analyst initiation with a BUY
- broker 'house' stocks' (ones the broker does most of the raisings for) -> positive analyst research and often a BUY