FCA is consulting, as part of its wider capital markets reform work, on a set of changes to the conduct and organisational requirements on research and best execution. The aim is that the rules continue to achieve their objectives, but in a more efficient way.
The changes will affect both MiFID investment firms and market operators as well as Article 3 firms, banks and CIS that provide investment services and unregulated research providers. The changes will:
- broaden the list of what is considered a minor non-monetary benefit to include research on SMEs with a market cap below £200m and FICC research, so that these are not subject to the rules on inducements;
- change how the inducement rules apply to openly available research and research provided by independent research providers;
- remove the obligation on execution venues to provide RTS 27 reports, and the obligation on executing investment firms to produce RTS 28 reports.
Comments are due by 23 June.