Analysts in Britain have welcomed a UK regulator's call for companies to stop pressuring analysts to make only positive comments on their performance, amid concerns over the prevalence of corporate bullying.

The Financial Services Authority (FSA) said that brokerages had complained of "significant ... pressure" to give positive coverage.

Some companies "freeze out" certain analysts if they think coverage is negative, the FSA said in a newsletter sent to companies.

"For issuers to cultivate favoured analysts or banks, or to freeze out perceived sources of negative news, is unacceptable behaviour," the FSA said, adding that companies "should not develop special relationships with selected analysts or take measures to keep analysts "in line".

Analysts welcomed the intervention, complaining that bullying by companies is more widespread than is widely known.

"This is definitely a step in the right direction, and we welcome the support," said Mr Michael Oertli, head of European research at UBS.

"It would be a positive development if the FSA helped target and reprimanded companies that chronically intimidated analysts," he added.

A London-based analyst at a US bank said one bank had been so irate at his firm's less-than-positive stance that it ordered coverage be dropped or the firm's analysts would be excluded from contact with management.

The firm didn't drop coverage and was cut off.

The regulator's comments came after brokerage houses had asked the financial watchdog to apply rules on conflicts of interest, already in place for analysts, to companies covered by research.

The FSA said it would not change the rules for listed companies but would keep them under review.