Regulatory Alerts2025-10-22
Final Report on Draft Regulatory Technical Standards for EU Code of Conduct for Issuer-Sponsored Research
The European Securities and Markets Authority (ESMA) has finalized draft regulatory technical standards establishing an EU code of conduct for issuer-sponsored research to revitalize the market for small and medium-sized enterprises. The code requires research providers to adhere to a two-year minimum contract term and a 50% upfront payment to ensure independence, while allowing investment firms to distribute analysis under the 'issuer-sponsored research' label only if these standards are met. ESMA submitted the draft to the European Commission for adoption, noting that non-compliance results in the research being classified as marketing communication rather than issuer-sponsored research.
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