The Financial Conduct Authority (FCA) will scrap MiFID rules on research for companies with a market cap of less than £200m in order to increase the research coverage from SME issuers and “create a regime that is proportionate to the risks of inducements that arise”.
In a policy statement issued on Tuesday (30 November), the FCA said the new inducement rules mean research on firms below the threshold can be provided by brokers to asset managers on a "bundled basis" or for free. Other changes include exemptions for third party research on fixed income currencies and commodities (FICC) instruments and research from research providers that do not supply execution services or are part of a company that do. Finally, it clarified that openly available written research does not fall within the scope of the inducement rules. The FCA received 59 respons...
To continue reading this article...
Join Professional Adviser
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence.
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters.
- Make smart business decisions with the latest developments in regulation, investing retirement and protection.
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes.
