U.K. Plans to Scrap MiFID Research Rule for Small Firms, Bonds
- Companies valued at under 200 million pounds will be exempt
- Regulator hopes to encourage more research on small-caps
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Britain’s market watchdog proposed easing landmark restrictions on investment research for small companies and fixed income markets in its first efforts to rewrite these rules since the U.K. left the European Union.
The Financial Conduct Authority said analysts’ work on firms with a market value less than 200 million pounds ($278 million) would be exempt from unbundling rules, which were introduced by the EU’s MiFID II reforms to force investors to pay for research separately from trading.