Merrill Lynch has suspended two retail analysts over research into the retailer Sainsbury’s which triggered a Financial Services Authority (FSA) selective disclosure investigation.
According to a statement issued by Merrill, analysts Andrew Fowler and John Kershaw were yesterday put on immediate administrative leave.
The investment bank said that the suspension does not imply any wrongdoing on the part of either analyst, but that the steps taken were standard procedure when “issues of this kind” arise and were taken to “maintain the highest standards of professionalism.”
Fowler and Kershaw had written a note regarding profits at the supermarket chain following a conversation with Sainsbury’s 11 days before yesterday’s announcement of a business overhaul.
In the note, a profit forecast was cut by 10% following Sainsbury’s “helpfully pointing out” that a previous £177m 1st half profit was too high. The FSA is still looking into the issues regarding selective briefings raised by the note.
