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SEC asked to resolve research rift between Europe and US

European rules on research payments will clash with those imposed by the SEC, say organisations including the IA and ICI Global

Research rule inequality between the US and EU is causing concern
Research rule inequality between the US and EU is causing concern Photo: iStock

Trade bodies from both sides of the financial services industry have united to demand relief from US regulations that clash with new EU rules on investment research payments coming into force in 2018.

The source of chagrin for both buyside and sellside lobby groups is the EU's Mifid II rulebook, which bans fund managers from paying banks for investment research directly out of clients' funds, as this is seen as an inducement to trade with that bank.

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