FCA scraps MiFID research rules on small-caps

£200m threshold

Kathleen Gallagher
clock • 1 min read

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

  • 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.

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Simplified advice regime will boost financial resilience

Simplified advice regime will boost financial resilience

'What's been tabled will help to ease the nation's cash obsession'

David Tiller
clock 01 December 2022 • 3 min read
FCA moves to create simplified financial advice regime

FCA moves to create simplified financial advice regime

‘Proportionate qualifications to keep costs lower’

Jenna Brown
clock 30 November 2022 • 7 min read
Consumer Duty rules define 5.6 million as ‘vulnerable investors’

Consumer Duty rules define 5.6 million as 'vulnerable investors'

Health, life events and financial resilience play a factor

Jenna Brown
clock 30 November 2022 • 1 min read