NIRI Comments on MiFID II and Urges SEC to Promote Coverage of Small and Mid-Cap Issuers
On October 26, the SEC issued three no-action letters regarding the European Union’s Markets in Financial Instruments Directive (MiFID II). On October 31, the National Investor Relations Institute (NIRI) shared a letter thanking the SEC for the no-action letters and urging the SEC to promote coverage of small public companies.
The letter highlights a decrease in research coverage of smaller companies that will only be exacerbated by MiFID. NIRI suggests that the SEC should work with broker-dealers, independent research providers, investment managers, IR professionals, and European regulators to develop recommendations to promote more research coverage of small- and mid-cap companies in both the United States and Europe during the 30-month period of no-action relief.
Read the full letter HERE.