What Was the MiFID SME Growth Markets Initiative?
The European Commission has confirmed the cancellation of the public consultation initiative related to MiFID costs disclosure for research covering multilateral trading facility (MTF) segments registered as SME growth markets, originally published on its Better Regulation “Have Your Say” portal under reference 14502. This initiative, which aimed to develop a delegated act specifying transparency and cost disclosure obligations under MiFID for research on SME growth market segments, will no longer proceed as a standalone consultation.
Relation to the EU Listing Act
The now-abandoned initiative was intended to complement ongoing reforms under the broader EU Listing Act package, a set of legislative changes designed to make capital markets more attractive, particularly for small and medium-sized enterprises (SMEs). The Listing Act, formally adopted and published in the Official Journal in late 2024, already reforms multiple elements of the Markets in Financial Instruments Directive II (MiFID II), the Prospectus Regulation and the Market Abuse Regulation to improve listing conditions, investor research coverage and regulatory transparency across EU markets.
Impact on SME Growth Markets and Research Transparency
In its place, policymakers and regulators are now expected to rely on MiFID II amendments embedded directly within the Listing Act framework to address issues previously slated for separate delegated rule-making. These amendments include revised transparency requirements for payment structures relating to research and execution services, expanded flexibility in research payment methods, and enhanced disclosure obligations for investment firms regarding how costs are allocated and communicated to clients changes integrated into MiFID II’s delegated directive process over 2025 and into 2026.
Officials have signaled that while the specific 14502 initiative has been withdrawn, its underlying policy goals with better cost transparency in research and stronger visibility of SME issuers on European capital markets remain policy priorities pursued through other regulatory channels within the Union’s financial services framework.
Frequently Asked Questions
Was the MiFID SME research delegated act officially withdrawn?
Yes. The European Commission removed the initiative from the Better Regulation portal and will not proceed with it as a standalone delegated act.
Does this affect the EU Listing Act?
No. The broader Listing Act framework remains in force, but this specific delegated initiative has been abandoned.
Will research cost transparency still be addressed?
Yes. Related policy goals may be integrated into broader MiFID II reforms.
