EU Establishes a Code of Conduct for Issuer-Sponsored Research

Delegated Regulation (EU) 2026/1092 establishes a European Union code of conduct for issuer-sponsored research. Its objective is to ensure that this type of analysis can be clearly identified and prepared with safeguards for independence, objectivity and transparency. The Regulation was published on 4 September 2026 and enters into force on 7 September 2026.

What is meant by issuer-sponsored research

The Regulation reserves this designation for investment research that has been paid for in whole or in part by an issuer and that has been prepared in accordance with the code of conduct included in its Annex.

Excluded are trading commentary and other tailored analysis services directly linked to the execution of transactions in financial instruments where they do not constitute investment recommendations.

Checks to be carried out by investment firms

Investment firms that use this research or make it available to their clients must obtain from the provider the information necessary to verify that it has been prepared in accordance with the code of conduct.

If they do not have sufficient information to carry out that verification, they may not distribute the analysis to clients or prospective clients using the designation “issuer-sponsored research”. They may take into account the opinion of an independent third party or, in certain cases, the fact that the provider is a regulated investment firm subject to the Regulation.

Responsibility for complying with the obligations laid down in Directive 2014/65/EU remains with the investment firm in all cases.

Independence and management of conflicts of interest

Providers must establish and apply an effective policy to identify, prevent, manage and disclose conflicts of interest relating to this research. They must also keep an up-to-date record of existing or potential conflicts and the measures adopted, and review the policy at least once a year.

Issuer sponsorship must not affect the independence or objectivity of the analysis. The code requires appropriate organisational arrangements, conditions equivalent to those applicable to non-sponsored research, and measures to limit conflicts between analysts, issuers and other persons within the firm.

Among other obligations, certain personal transactions by analysts are restricted when they are aware of the content or likely publication date of the analysis; analysts must be separated from other potentially conflicting functions; and favourable research for the issuer may not be promised. Nor may the issuer attempt to influence the content of the research.

Where an external analyst is involved, the provider must ensure that the analyst also complies with the rules on conflicts of interest, independence and objectivity.

Identification and informative content

The designation “issuer-sponsored research” and the indication that the analysis has been prepared in accordance with the code of conduct must appear prominently on the first page and on the covers. The designation must also appear on every page.

The analysis must include a summary of relevant aspects, such as who has paid for the research, whether it is public or reserved for those who contributed to its financing, where the conflicts-of-interest policy can be consulted, and whether certain revenues exceed the threshold of 5% of the provider’s consolidated gross revenues or, where applicable, those of the external analyst.

Information must also be provided on recent contractual relationships between the issuer and the provider, including certain liquidity-provision arrangements.

Contracts, remuneration and dissemination

The initial contract between the issuer and the provider must have a minimum duration of two years. Renewals must last at least one year. Early termination may be based on objective criteria, but the issuer may not terminate the contract because it is dissatisfied with the content or recommendations of the analysis.

Remuneration may not compromise the provider’s objectivity or independence or include variable components linked directly or indirectly to the content of the research. In addition, the issuer must pay at least 50% of the annual remuneration as soon as possible after signing and on each anniversary of the contract.

Where the issuer pays for the research in full, it must make it freely accessible to the public or allow it to be consulted publicly. If payment is partial, the analysis may be reserved for investors who contributed to financing it, either indefinitely or for the agreed period.

Updates, records and investment recommendations

During the term of the contract, the provider must make every effort to publish an update as soon as possible after important information is disseminated that could significantly affect the financial instruments analysed.

If the research ceases to comply with the requirements of the code, the designation must be replaced by “marketing communication” as soon as the provider becomes aware of this.

Providers must retain, among other documents, contracts, payments, sources of information, published analyses and data on conflicts of interest. These records must be kept for a minimum of five years and be retrievable for future consultations.

Issuer-sponsored research containing investment recommendations must also comply with the requirements on objective presentation and disclosure of interests or conflicts laid down in the European legislation on market abuse and in Delegated Regulation (EU) 2016/958.

The main change is the creation of a harmonised framework to distinguish research sponsored by an issuer and subject it to specific requirements on transparency, independence, conflict monitoring and information retention. In practice, investment firms will have to verify that the analyses they distribute comply with the code, while providers will have to document how they protect the objectivity of their work. This text is an informative draft subject to legal review.

Official source

BOE · Consumers and users