News | 02.04.19
End the Clash over EU Research Rule, SEC Urged
The SEC is being urged to align its regulations on funding investment research with those of the EU's revised Markets in Financial Instruments Directive (MiFID II), which clashes with the' “soft dollar,” law that requires a U.S. business that sells research for “hard” dollars to be a registered investment adviser. The difference between the two prompted the SEC to issue a 30-month reprieve for U.S. banks and brokers to directly charge EU asset manager clients for research. Only asset managers investing on behalf of EU investors can bypass the rules. The SEC must decide whether to extend the arrangement beyond July next year but stakeholders, including the Council of Institutional Investors and asset manager MFS, want the regulator to let all managers implement the MiFID II model.
Read the full article on Financial Times FTfm