MiFID 2 introduces new measures governing the funding of research in order to protect investors and limit the risks of conflicts of interests.
To support all the relevant stakeholders in the implementation of these new measures, the French Markets Regulator (Autorité des Marchés Financiers) has decided to publish an explanatory guide.
On this post
MIFID II regulatory context
From 3 January 2018 onwards, individual portfolio managers that receive research will be faced with 2 options:
- either they pay for it from their own resources, or
- they invoice their discretionary management clients under certain conditions, as described in the delegated directive of 7 April 2016.
Alongside the consultation, the AMF has been actively involved in the discussions on interpretative measures – level 3 texts – within ESMA with the object of establishing a harmonised application of these new rules at a pan-European level.
Since October 2016, ESMA has published a number of questions and answers (Q&As), on the matter, the latest of which were posted on ESMA’s website on 6 June 2017.
At the same time, the provisions of the delegated directive have been incorporated into French positive law within the General Regulation of the AMF.
It was with the aim of summing up the current state of the regulation of the funding of research, and also in response to a number of market participants’ questions that the AMF decided to publish this Guide.
Mifid II on corporate access, research budget and operational rules
The Guide is set out in seven sections, under the headings below. Each topic is addressed in the form of a series of Q&As, with references to the relevant legal texts and accompanied by a presentation of the key underlying principles.
Each section’s contents are as follows:
- Scope of application of the funding of research
- Definition of research
- Minor non-monetary benefits
- Macroeconomic analysis
- Corporate access
- Operation of the research budget
- Research Payment Account