It's no secret that sellside analysts too freely issue "buy" recommendations, are too slow to lower projections or issue downgrades, and generally are too beholden to their bankers. But it's one thing to have in place a system that everyone knows is less than kosher, and quite another to codify it.

Peter Houghton, European head of equity research at JP Morgan Chase, has come under the financial media spotlight after The Times in London last week reported that he had issued "mandatory" rules requiring analysts to provide prepublication review of their research by the covered company and its banker.