The US SEC has announced an extension of the SEC staff ‘no action letter’, which addresses the potential conflict between US regulation and MiFID II, until 3 July 2023. The existing relief was due to expire on 3 July 2020.
During the remainder of the current period and the extended period of the no-action relief, broker- dealers subject to the US regime may receive payments for unbundled research from firms subject to MiFID II or equivalent rules of EU member states without being considered an investment adviser under US law. This will also apply to UK firms in the event of EU withdrawal before or during the extended period.
The FCA’s own multi-firm review findings published in September 2019 found that rules have improved asset managers’ accountability over costs, saving millions for investors. We will carry out further work in 12-24 months’ time to assess firms’ ongoing compliance with our rules and developments in the market for research.
