The North American Securities Administrators Association has formed a task force to look at the issue of analyst independence.

In a statement, NASAA president Joseph Borg, said that last week, the board of directors for the NASAA “voted to form a multi-state task force that will focus on the issues raised by the New York Attorney General in investigating underwriting and analysts’ research issues and possible securities law violations by Wall Street firms”.

New York’s AG, Eliot Spitzer had accused Merrill Lynch analysts of falling victim to conflicts of interest between their research clients and the firm’s investment banking operations. Last week, Merrill and the AG reached a settlement requiring Merrilll to make several improvements to its disclosure of possible conflicts. Spitzer is said to be investigating similar allegations against other Wall Street firms.

Borg reported that the task force will be chaired by New Jersey. “The investigation will center on practices that adversely affected thousands of Main Street investors nationwide. By forming the task force, we are coordinating that effort and leveraging resources.”