Asset Management

FR1197 / 9 March 2023

HM Treasury

Investment Research Review - HM Treasury publishes terms of reference - 9 March 2023

HM Treasury has published the terms of reference for the Investment Research Review (the Review), announced as part of the Edinburgh Reforms, together with its announcement of the appointment of Rachel Kent as its Chair.

The Review will consider the provision of investment research and its contribution to the competitiveness of the UK’s capital markets. It will focus on two key objectives:

  • to assess the link between levels of research and the attractiveness of the UK as a destination to list; and
  • to evaluate the options to improve the UK market for investment research and provide recommendations to this effect.

In relation to the first objective, the Review is asked to:

  • provide evidence on how investment research provision in the UK compares, or is perceived to compare, with other international financial service centres in both public and private markets;
  • consider the amount, quality and type of investment research currently provided on firms listed or quoted, or seeking to be listed or quoted, on UK public markets, and whether this has an effect on the attractiveness of the UK market for issuers; and
  • consider the current level of investor demand for research, the factors driving this demand and any evidence of whether the amount, quality and type of investment research is sufficient to meet such demands.

As part of the second objective, the Review will consider the impact of the Markets in Financial Instruments Directive (2014/65/EU) unbundling rules on the levels and quality of investment research and evaluate the likely impact of any proposed changes on investment and fees.

The Review will formally commence on 13 March 2023. The Chair has agreed to report within three months of their appointment.

Terms of Reference - Investment Research Review


Press release

Financial Conduct Authority

Long Term Asset Fund - FCA authorises first Long Term Asset Fund - 9 March 2023

The FCA has published a statement announcing its authorisation of the first Long Term Asset Fund (LTAF).

This follows the publication of the FCA’s final rules on the regulatory framework for LTAFs, in October 2021 and a Consultation Paper on broadening retail access to LTAFs (CP22/14), in August 2022. The statement indicates that the FCA will publish a Policy Statement, including final rules, in the first half of 2023.

Press release