The Global Research Analyst Settlement (GRAS) was an important enforcement response to misconduct over 20 years ago by 12 firms that had published biased research to curry favor with investment banking clients during the dot-com era. In addition to fines and other sanctions, the GRAS imposed special undertakings on these firms to address conflicts of interest between their research and investment banking functions.
Recently, the SEC consented to amendments to the GRAS that terminated these undertakings in recognition of changes that have been made to the regulatory regime for equity research.
The SEC made the right decision. Like most enforcement undertakings, the GRAS restrictions were never meant to last in perpetuity. Indeed, express language in the GRAS presumed they would eventually be retired once an enhanced regulatory framework was established that would apply to all firms, not just the original 12 subject to the GRAS. And in fact, actions by Congress, the SEC and FINRA have accomplished just that: creating a robust regulatory regime to safeguard the integrity of equity research that amply justifies retiring the GRAS.
Source: Time to Move On: The SEC Was Right to Retire the Global Research Analyst Settlement | FINRA.org