FCA scraps MiFID research rules on small-caps

£200m threshold

Kathleen Gallagher
clock • 1 min read
FCA scraps MiFID research rules on small-caps
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FCA scraps MiFID research rules on small-caps

The Financial Conduct Authority 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 today, 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. FCA looks to scrap MiFID research rules on s...

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