The extension benefits market participants in the US seeking to comply with EU MiFID II research rules, but significant issues remain.

Key Points:

..The no-action relief has been extended for three additional years from the date of the original expiration, to July 3, 2023.

..Absent the extended relief, US broker-dealers receiving designated payments for research from EU-based asset managers risked losing the benefit of an exemption from additional regulation by the SEC as an investment adviser under the Advisers Act.

..The relief, however, remains silent as to US broker-dealers that wish to unbundle research and execution charges for non-EU-based asset managers.