In March 2023, Treasury launched its investment research review to consider levels of financial services investment research in the UK, and its contribution to UK capital markets competitiveness. The review was part of the measures promised by the Edinburg reforms. It has now published the findings of the review.
The report makes a number of recommendations to the government, FCA and industry, including:
- introduce a Research Platform to help generate research;
- allow additional optionality for paying for investment research;
- allow greater access to investment research for retail investors;
- involve academic institutions in supporting investment research initiatives;
- support issuer-sponsored research by implementing a code of conduct;
- clarify aspects of the UK regulatory regime for investment research and consider introducing a bespoke regime; and
- review the rules relating to investment research in the context of IPOs.
The Chancellor and FCA have welcomed the report. FCA has published a statement highlighting its commitment to a range of work designed to strengthen the UK’s position in global wholesale markets and putting consumer needs first. It promises to build on that strength in the coming months by supporting the reforms announced by the Chancellor in light of the review.