Andrew Bailey keynote speech on MiFID II at the European Independent Research Providers Association

27 Feb 2019 / News

Chief Executive of the Financial Conduct Authority (FCA), Andrew Bailey, gave his keynote speech focusing on the positive impacts and challenges following the implementation of MiFID II.

This coincides with the latest release of our MiFID II Monitor,  in which Keith Hiscock, CEO of Hardman & Co, comments: “A year on from MiFID II, we may be seeing a reallocation of broker research resources from well-researched large cap stocks towards smaller cap companies. But coverage of the largest stocks continues to dominate research output and most companies still struggle to have their story told by more than two or three analysts.

Andrew Bailey in his keynote speech highlighted:

“Many have expressed concerns about the potential negative impact of the new rules on the research coverage of smaller companies and the liquidity of their shares on secondary markets.

To ease this potential impact, we took certain steps ahead of MiFID II by:

  1. allowing free distribution of research that supports capital raising events;
  2. allowing issuer-sponsored research – an important source of coverage for smaller companies – to be freely circulated; and
  3. clarifying that research made publicly available cannot be an inducement.”

Andrew Bailey, CEO of the FCA

Read the full speech

Further Reading:

Hardman & Co has produced a series of research pieces on the impact of MiFID II, the relationship between research coverage and liquidity, and the importance of retail investors for liquidity. Publications include:


In addition (copies available on request):

MiFID II – Impact on research & stock market liquidity (Keith Hiscock – 2017)

Why broker research coverage of non-clients is collapsing (Jason Streets – 2016)