The Commission has published frequently asked questions (FAQs) that clarify EU investment firms' obligations when they seek out brokerage and research services from broker-dealers in non-EU countries.
The guidance has been published following concerns raised with the FCA by UK market participants that, post-3 January 2018, they would be unable to continue to access US research (or research in other-non-EU jurisdictions) in compliance with the MiFID II requirements.
In response, the Securities and Exchange Commission (SEC) has issued no-action letters broadly confirming:
- "Broker-dealers, on a temporary basis, may receive research payments from money managers in hard dollars or from advisory clients' research payment accounts;
- Money managers may continue to aggregate orders for mutual funds and other clients;
- Money managers may continue to rely on an existing safe harbor when paying broker-dealers for research and brokerage."