NASD’s Disclosure Proposal Draws Support

A regulatory proposal to make stock analysts disclose potential conflicts of interest drew support from 99% of the more than 800 investors, brokers and financial-services firms that commented on the plan, National Assn. of Securities Dealers documents show.

The NASD proposal seeks to let investors gauge the objectivity of stock recommendations issued by Wall Street analysts. It would make analysts disclose personal holdings in stocks they recommend, as well as their firms’ investment banking business with companies under review.

The NASD, which invited public comment on the plan in July, will decide this week whether to send it to the Securities and Exchange Commission for final approval, a spokeswoman said. The NASD released the comment letters Thursday.

NASD Chairman Robert Glauber said he wants his board to seek action by the SEC.

“The goal here is to give more information to investors so they can use the research information more wisely,” he said. Glauber, 62, was elected chairman Thursday by the NASD board, replacing Frank Zarb, who is retiring this month.