MiFID Research Rule Has Been a Success, EU Regulator Says (1)

Europe’s markets authority pushed back at the idea that regulation was damaging the production of analysis on companies.

In its most comprehensive assessment of MiFID II restrictions, the European Securities and Markets Authority said Wednesday that the region’s signature piece of regulation is working, the quality of investment research is improving and there has been no “material evidence of harmful effects.”

MiFID II is believed by critics to have reduced coverage of smaller companies after banks were banned from funding research through clients’ trading fees. ESMA disagreed, saying any fall-off in company coverage was a trend that started long before...