Sponsored equity research threatened due to disagreements over Place de Paris

Posted on Dec. 2021 at 13:17Updated Dec 6, 2019 2021 at 14:45

At the end of October, financial analysts were optimistic. Robert Ophèle, on the occasion of the sixty years of the SFAF (French Society of Financial Analysts), announced that finally, the charter of good practices aimed at supervising sponsored research would see the light of day. Sponsored research is one of the means that equity research, in difficulty since the entry into force of the Mifid 2 directive, has found to reinvent itself.

Sponsored research is paid for by the company which has an interest in having its title tracked. The profession needs a charter to prevent Brussels from equating this research with not very credible “infomercial”, and from subjecting it to even more regulatory obligations. Extremely common among Anglo-Saxons, this practice has more than doubled since MiFID 2. Today, 212 companies use it in France, against only 100 three years ago.

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