Activities of Claude GRUFFAT related to 2022/0405(COD)
Shadow reports (1)
REPORT on the proposal for a directive of the European Parliament and of the Council amending Directive 2014/65/EU to make public capital markets in the Union more attractive for companies and to facilitate access to capital for small and medium-sized enterprises and repealing Directive 2001/34/EC
Amendments (9)
Amendment 15 #
Proposal for a directive
Recital 4
Recital 4
(4) In order to revitalise the market for investment research and to ensure sufficient research coverage of companies, in particular the small and medium capitalisation companies, further alleviation of the research unbundling rules are necessary. By increasing from EUR 1 billion toSMEs continue to be characterised by lower amount of analyst research, higher probability of losing coverage, worse quality of research and limited secondary market liquidity, as compared to larger firms. According to ESMA findings, this situation appears to have been neither improved nor worsened by the MiFID II research unbundling provisions. For this reason, an expansion of the EUR 10 billion the threshold of companies’ market capitalisation below which the unbundling rules do not apply, more small and medium capitalisation companies, and in particular more medium capitalisation companies will benefit from a larger research coverage, bringing those companies more visibility from potential investors and thus increasing their capacity to raise funding in the marketis not likely to have a positive impact on research for small and medium capitalisation companies, while on the other hand it would reduce transparency and clarity for investors and weaken rules against conflict of interest. In order to revitalise the market for investment research and to ensure sufficient research coverage of companies, in particular the small and medium capitalisation companies, further measures are therefore necessary to promote ad strengthen the capacity to produce and distribute research through both public funding programmes and supervisory initiatives, while improving at the same time the rules to prevent conflict of interest associated with research sponsored by issuers.
Amendment 18 #
Proposal for a directive
Recital 5
Recital 5
(5) In addition, to further support the coverage of small and medium capitalisation companies by investment research, research material paid fully or partially by issuers should be labelled as ‘issuer-sponsored research’. To ensure an adequate level of objectivity and independence of such research material, such material should be produced in line with a code of conduct developed or endorsed by a market operator registered in a Member State or by a competent authority. In order to support moreby ESMA by means of regulatory technical standards. For this purpose, investment firms should have in place governance and organisational procedures to ensure that the issuer-sponsored research they produce, use or distribute is produced in compliance with the EU code of conduct and with the requirements laid down in this Directive. Member States should ensure that competent authorities have all the necessary supervisory and investigatory powers to ensure that the investment firms comply with the requirements. In order to ensure the necessary visibility of the issuer-sponsored research, issuers should have the possibility to submit their issuer- sponsored research to the relevant collection body as defined32 in [Article 2 (2) of the proposal for a Regulation33 on a European Single Access Point]. __________________ 32 See Article2.2 o proposal for a Regulation [2021.78.COD] 33 Proposal for a Regulation [2021/03.78.COD]
Amendment 28 #
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point a
Article 1 – paragraph 1 – point 2 – point a
Directive 2014/65/EU
Article 24 – paragraph 3 b – subparagraph 1
Article 24 – paragraph 3 b – subparagraph 1
Where the research is paid, fully or partially, by the issuer and disseminated to the public or to investment firms or to the clients of investment firms providing portfolio management or other investment or ancillary services, such research shall be labelled as “issuer-sponsored research” provided that it is produced in compliance with a EU code of conduct developed or endorsed by a market operator registered in a Member State or by a competent authorityfor issuer- sponsored research to be developed by ESMA.
Amendment 29 #
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point a
Article 1 – paragraph 1 – point 2 – point a
Directive 2014/65/EU
Article 24 – paragraph 3 b – subparagraph 2
Article 24 – paragraph 3 b – subparagraph 2
Amendment 33 #
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point a
Article 1 – paragraph 1 – point 2 – point a
Directive 2014/65/EU
Article 24 – paragraph 3 c
Article 24 – paragraph 3 c
3c. Member States shall ensure that any issuer mays submit itsany issuer-sponsored research, as referred to in paragraph 3b of this Article, to the relevant collection body as defined in [Article 2(2) of the proposal for a Regulation on a European Single Access Point40 ]. __________________ 40 Proposal for a Regulation [2021/0378.COD].
Amendment 35 #
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point a
Article 1 – paragraph 1 – point 2 – point a
Directive 2014/65/EU
Article 24 – paragraph 3 d
Article 24 – paragraph 3 d
3d. Research that is labelled as issuer- sponsored research shall indicate on its front page in a clear and prominent way that it has been prepared in accordance with a EU code of conduct. The name of the market operator or competent authority that has developed or endorsed such code of conduct shall also be mentioned. Any other research material paid fully or in part by the issuer but not produced in compliance with a code of conduct as referred to in paragraph 3b shall be labelled as marketing communication.;
Amendment 36 #
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point a
Article 1 – paragraph 1 – point 2 – point a
Directive 2014/65/EU
Article 24 – paragraph 3 d a (new)
Article 24 – paragraph 3 d a (new)
3d a. Member States shall provide that investment firms that produce, use or distribute issuer-sponsored research have in place adequate governance and organisational procedures to ensure that any issuer-sponsored research is produced in compliance with the EU code of conduct developed by ESMA and with paragraph 3a to 3d of this Article. Member States shall ensure that competent authorities have the necessary supervisory and investigatory powers to ensure compliance with the relevant requirements and to suspend the distribution of any issuer-sponsored research that is not produced in compliance with the EU code of conduct.
Amendment 40 #
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point b
Article 1 – paragraph 1 – point 2 – point b
Directive 2014/65/EU
Article 24 – paragraph 9 a – point c
Article 24 – paragraph 9 a – point c
(c) the research for which the combined charges or the joint payment is made concerns issuers whose market capitalisation for the period of 36 months preceding the provision of the research did not exceed EUR 10 billion, as expressed by end-year quotes for the years when those issuers are or were listed or by the own- capital for the financial years when those issuers are or were not listed.;
Amendment 48 #
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point b a (new)
Article 1 – paragraph 1 – point 2 – point b a (new)
Directive 2014/65/EU
Article 24 – paragraph 9 b (new)
Article 24 – paragraph 9 b (new)
(b a) the following paragraph is inserted: 9b. ESMA shall establish a platform aimed at creating a "EU research marketplace" to support and develop high quality, independent research covering small and medium enterprises through a combination of public funding programmes and voluntary contributions from market participants. Such platform shall facilitate the regular exchange between competent authorities, investment service providers and research firms and have a special focus on small and midcaps and innovative stat-ups as well as on ESG research covering environmental, governance and social issues.