- Consider the current level of demand investors have for research, factors driving this demand, and evidence of whether the amount, quality and type of investment research is sufficient to meet such demands.
To evaluate options to improve the UK market for investment research and provide recommendations to this effect. In particular:
- The Review may recommend legislative and non-legislative measures for regulators and industry.
- The Review will consider the impact of MiFID II unbundling rules on the levels and quality of investment research and evaluate the likely impact of any proposed changes on investment and fees.
On 3 April Treasury published a Call for Evidence aimed at gathering further views informing these objectives, the deadline for which is 24 April. The IA will be submitting a response.
The wider review, which will run until June 2023, is part of the Government's broader work to increase the attractiveness of the UK as a location for large and small companies to raise capital. While the Chair will determine the exact course the Review will take, the Government expects it will involve consultation with a wide ranger of stakeholders, including the FCA, buy-side and sell-side firms, investors, independent research firms, trading venues, listed and quoted companies, and legal and academic experts.
The IA will be engaging closely with this Review, and has already held initial conversations with Rachel Kent. The Investments & Capital Markets team will be linking closely with the Stewardship, Risk & Tax team to include any VAT-related points.