SIFMA AMG Submits Comments to European Commission Regarding Investment Research

The Asset Management Group of SIFMA ("SIFMA AMG") provided comments to the European Commission regarding the potential impact of the European Securities Markets Authority December 2014 MiFID II technical advice as it pertains to potential dealing commissions regulation.

SIFMA AMG stated that it is concerned with the technical advice's proposed restrictions on the ability of investment managers to use the resources of their clients to pay for research. According to SIFMA AMG, the U.S. dealing commissions process operates under a "system of transparency," with legally required disclosures and the option for investors to follow up with further questions.

Additionally, SIFMA AMG stated, there is no indication of any desire to change the regulatory structure of the U.S. commission dealings system, and any major change likely would require the U.S. Congress to pass legislation. According to SIFMA AMG, if the EU were to change the way in which dealing commissions operated, as proposed in the technical advice, then "the dual nature of the compliance regimes would have a potential deleterious effect on the quality of research available within the EU," which could drive financial services business outside the EU.

See: SIFMA AMG Comment Letter.