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Ivy Schmerken
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MiFID II Reaches Across the Pond: Is This the Calm Before the Storm?

Despite the view that MiFID II is a European regulation, US investment managers are experiencing disruption as they align their research payment and execution practices with the influential standard.

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May 31, 2002

SIA Questions SEC Analyst Reforms

By Gregory Bresiger

A large securities industry group said smaller firms may be hurt by some of the analyst reforms recently approved by the SEC. The regulations toughen the requirements that legal and compliance staffs have in communicating with one another, especially in the relationships between the investment banking and research sides of the firm.

The disclosure of information on non-public deals, according to the Securities Industry Association, will hurt the ability of small firms to provide research and underwrite offerings of companies.

"These regional broker dealers play a particularly important role in companies. That, in turn, makes it harder for these companies to raise the funds they need to expand and hire more workers," according to Stuart Kaswell, general counsel for the SIA. Still, the SIA said that it supports the bulk of the analyst reforms.