Asset Management

UK watchdog proposes overhaul of Mifid II research rules

The FCA proposed changes focus on research coverage of firms with a market cap of less than £200m

The Financial Conduct Authority wants to scrap some of the most burdensome EU rules on investment research, offering a potential lifeline to smaller UK companies which have little or no analyst coverage.

The UK regulator published a consultation paper on 28 April in which it proposed ditching investment research rules for firms with a market capitalisation of less than £200m to “reflect and address the potential market failure in the form of low levels of coverage in research”.

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