Free Site Registration

SEC Staff Encourages Continued Engagement on Impact of MiFID II Research Provisions

Traders Magazine Online News, December 31, 2018

John D'Antona Jr.

Earlier this year, significant new rules relating to research became effective in the European Union (EU).††In an effort to assist market participants regarding their U.S.-regulated activities as they engage in efforts to comply with the EUís Markets in Financial Instruments Directive (MiFID II), the staff of the U.S. Securities and Exchange Commission†issued three related no-action letters. One letter, from the SECís†Division of Investment Management, provided temporary no-action assurances under the Investment Advisers Act of 1940 to broker-dealers that receive payments in hard dollars or through MiFID-governed research payment accounts from MiFID-affected clients.†These assurances expire on July 3, 2020.

In the year since MiFID II became effective, broker-dealers, investment advisers, issuers and other market participants have had an opportunity to observe the effects of MiFID IIís research provisions.†During this time, SEC staff has also been monitoring and assessing the impact on the research marketplace and affected participants, including investment advisers and broker-dealers.†As part of this effort, SEC staff continues to conduct industry outreach and engage with other regulators, including European authorities.††

ďAs the staff evaluates possible recommendations, it is invaluable to hear from a diverse group of market participants,Ē said SEC Chairman Jay Clayton. ďIn particular, it is important to have data and other information about how MiFID II's research provisions are affecting broker-dealers, investors and small, medium, and large issuers, including whether research availability has been adversely affected. Thank you to all who have been engaging with us on these issues.Ē†

We continue to encourage members of the public†to provide data and other information relating to the effects of MiFID II's research provisions.†

Electronic submissions:

Use the†SECís Internet†submission form†or send an e-mail to:IMMiFIDII@sec.gov

Comments would be appreciated by Jan. 31, 2019 so that they can be of greatest value in the staffís evaluation of possible recommendations. In particular, data and information covering the period from MiFID IIís implementation to a recent date would be particularly useful.††

For more information on related topics, visit the following channels:

Comments (0)

Add Your Comments:

You must be registered to post a comment.

Not Registered? Click here to register.

Already registered? Log in here.

Please note you must now log in with your email address and password.