SEC grants welcome reprieve to US sell-side firms on MiFID II research rules

EU-US clash

Mike Sheen
clock • 3 min read

US regulator the Securities and Exchange Commission (SEC) confirmed today it would be granting broker-dealers temporary "no action relief" from a regulatory clash with Europe's MiFID II regulations, calming industry fears that UK investment firms could be cut off from US research when the legislation comes into force in January 2018.

Global regulators have been slow to provide answers as to how firms will access research from countries where the sale of research is prohibited, such as the US, when the European legislation specifically forbids sell-side firms from providing ‘free research'. BofA strikes out with MiFID II research solution However the SEC, whose rules currently forbid US broker-dealers from receiving payments for research unless registered as an investment adviser, has said that "on a temporary basis" the sell-side may "receive research payments from money managers in hard dollars or from advisory c...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on US

JP Morgan AM's Karen Ward: Investors should not 'trade' the US election
US

JP Morgan AM's Karen Ward: Investors should not 'trade' the US election

Focus on policy impact on inflation

Valeria Martinez
clock 14 March 2024 • 2 min read
Royal London AM launches Irish-domiciled US Equity fund
US

Royal London AM launches Irish-domiciled US Equity fund

Managed by Chris Parr

clock 13 March 2024 • 1 min read
LGIM CIO Laud: Magnificent Seven could be reaching bubble territory
US

LGIM CIO Laud: Magnificent Seven could be reaching bubble territory

Favours thematic approach to AI

Valeria Martinez
clock 11 March 2024 • 2 min read
Trustpilot