Webinar: SEC “No Action” Relief for MiFID II Clients to End – Part II


Global agency broker, StoneX will be sponsoring a live webinar for buy-side clients and other interested parties featuring three industry experts this Wednesday, April 5th at 12:00 pm to continue discussing the impact of the SEC’s decision not to extend the SIFMA “No Action” relief beyond its current July 3rd, 2023 expiration date.

Next Week’s Webinar

On October 26th, 2017, the SEC Staff issued a “No-Action” letter to SIFMA to help EU Asset Managers and the U.S. Investment Banks that provide them investment research, a temporary bridge to address the differences between U.S. and EU regulations following the establishment of MiFID II.

This no action letter made it clear that the SEC would not bring enforcement action against US brokers for a violation of the Investment Advisers Act of 1940 for accepting cash payments from asset managers subject to MiFID II for their research during the term of the “no action” letter.  On November 4, 2019 the SEC extended this “No Action” relief.

In a prepared speech on July 27th, the SEC Director of Investment Management William Birdthistle made it clear that they do not intend to extend the SIFMA “No-Action” beyond the current July 3rd, 2023 expiration date.  This announcement has set off a great deal of conversation among buy-side and sell-side firms.

This week’s StoneX webinar is designed specifically for institutional investors and other industry participants to hear Stephen Stone, Partner at Morgan Lewis; Gerald Lins, Special Counsel from Eversheds Sutherland; and Michael Mayhew, Chairman, Founder & Global Director of Research at Integrity Research Associates, LLC; address the various complexities surrounding the SEC’s decision to let its “no action” relief lapse in early July, 2023.  Click here to register for Wednesday’s webinar.

A few of the topics that will be addressed during this webinar include:

  • Why did the SEC issue the “No Action” letter in the first place?
  • What are the largest obstacles US brokers face with offering research as an investment advisor?
  • Will the SEC adopt some other regulatory solution to help EU asset managers to pay for US broker research using hard dollars?
  • Will the SEC have grounds to take enforcement action against US brokers who accept cash payments in the EU for research produced in the US?
  • Do EU asset managers have regulatory protection if they adopt the “reimbursed CSA” model to pay for research produced by US brokers?
  • Will the EU adopt a regulatory solution to enable EU asset managers to pay US brokers for their research (e.g. the recent Swedish proposal)?

This panel will address these and other prepared questions, as well as live questions from the online audience.  Click the button below to register for the free online webinar.


About Author

Mike Mayhew is one of the leading experts on the investment research industry. In addition to founding Integrity Research, Mike is on the board of directors of Investorside Research Association, the non-profit trade association for the independent research industry, and a frequent speaker on research industry trends and developments. Mike has over thirty years of research industry experience. Email: Michael.Mayhew@integrity-research.com

Leave A Reply