Sponsored search: the Paris marketplace struggles to agree on a charter

The president of the AMF had announced it with great fanfare, during the sixty years of the SFAF (French Society of Financial Analysts), last October. The Paris marketplace was to adopt a charter of best practices to regulate sponsored research by the end of the year. This charter was important because equity research, undermined by the European MiFID 2 directive which came into force in 2018, had found in sponsored research, which is paid for by the issuer, the means to reinvent itself. But to prevent Brussels from assimilating it to “advertising information” with limited credibility, or even banning it, it needed to regulate this practice.

The professional associations of the Paris market, the SFAF, the Amafi (French Association of Financial Markets), the AFG (French Management Association), the Af2i (French Association of Institutional Investors), joined by MiddleNext, have been discussing since october. In vain. They are unable to agree on a common charter. “There are two charters on the square: one drafted by Amafi and MiddleNext, the other by SFAF, AFG and Af2i”, indicates a source.

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