Sponsored research – European Code

ESMA has published a draft RTS on a European Code of Conduct for sponsored research.

AMAFI (AMAFI / 25-26) welcomes the fact that the draft is largely based on the French Charter of Best Practices for Sponsored Research, drawn up in 2022 by AMAFI, AFG and SFAF. The Charter has proved its worth, with 284 contracts signed, covering more than one-third of Euronext Paris companies with market capitalisations of between €10 million and €1 billion.

However, the Association considers that the proposed draft needs to be adjusted, in particular with regard to :

• The introduction of a grandfather clause to allow an orderly transition from existing contracts to the new arrangements,
• Confirmation that the MiFID and MAR frameworks apply in full, as is the case in France,
• Clarification that research produced in connection with an IPO conducted by a syndicate is not sponsored research,
• The obligation to assess compliance with the Code of Conduct for research produced, which should concern only distributors of research produced by entities that are not investment firms,
• Research partially financed by the issuer, which should not be disseminated publicly.

These points were discussed in an initial exchange with the AMF. ESMA is due to submit the RTS to the European Commission by the end of the year, with implementation scheduled for June 2026.