Regulation (EU) 2026/1092: the EU code of conduct for issuer-sponsored research

Commission Delegated Regulation (EU) 2026/1092 of 21 May 2026 was published in the Official Journal on 4 September 2026 and entered into force on the third day following its publication, 7 September 2026. It supplements MiFID II (Directive 2014/65/EU), under Article 24(3c) of that Directive, with regulatory technical standards that establish an EU code of conduct for issuer-sponsored research. It is based on draft standards submitted by ESMA, which took the French code of conduct for issuer-sponsored research into account as the only widely endorsed national code.

Issuer-sponsored research means research paid for, in full or in part, by an issuer and produced in compliance with the code. Trading commentary and other bespoke trade advisory services intrinsically linked to the execution of a transaction are not covered, because they are not investment recommendations under the Market Abuse Regulation.

Investment firms must obtain from research providers all the information necessary to assess whether research labelled 'issuer-sponsored research' is produced in compliance with the code. Where the information is insufficient, the firm must not distribute the research to clients or potential clients labelled as issuer-sponsored research.

In reaching a view, a firm may take into account the assessment and opinion of an independent third party appointed by the research provider or, where the provider is itself an investment firm, the fact that it is a regulated entity subject to the Regulation. In all cases the firm remains responsible for its obligations under Article 24(3a), (3b) and (3e) of MiFID II. On request, providers make available a summary of their agreement with the issuer and the relevant details of their conflicts of interest policy and conflicts register. For background, see our study note on conflicts of interest and investment research.

Providers must have an effective conflicts of interest policy for issuer-sponsored research, keep a register of existing and potential conflicts, investigate potential breaches and review the policy at least once a year. Sponsored research is produced under the same conditions as other research: no differences in analyst qualifications, resources or type of content. Analysts and others involved may not trade in the instruments covered, or related instruments, with knowledge of the likely timing or content of research not yet available to its recipients, other than as market makers acting in good faith or to execute unsolicited client orders; beyond that, they may trade only in exceptional circumstances with prior approval from the legal or compliance function. Providers may not promise favourable research, and where a draft contains a recommendation or a target price, the issuer may not review it before dissemination for any purpose other than verifying compliance with the firm's legal obligation.

The words 'issuer-sponsored research' must appear prominently on the front page and on every page, with a short summary stating whether the issuer paid in full or in part, whether the research is public or reserved, where the conflicts policy can be found, whether issuer-related revenue exceeds 5% of the provider's consolidated gross revenues in the previous financial year, and any client or contractual relationship with the issuer in the 12 months before the research. Records, including the issuer agreement, payments and all research with price targets and recommendations, are kept for at least five years.

The initial contract between the issuer and the provider runs for at least two years, and each renewal for at least one year. Early termination is allowed only on objective criteria, such as the delisting of the issuer's shares, repeated non-payment or systematically late delivery; the issuer may not end the contract because it is unhappy with the content or the recommendation. Remuneration may not contain variable components linked to the content, and the issuer pays at least 50% of the annual remuneration as soon as possible after signature and on each contract anniversary.

Research the issuer pays for in full must be accessible to the public free of charge; research the issuer pays for only in part may be reserved for the investors who contributed to the payment. During the contract the provider makes its best efforts to update the research after important new information, and relabels it as 'marketing communication' once it no longer meets the code. Issuer-sponsored research also contains investment recommendations, so the Market Abuse Regulation rules on objective presentation and disclosure of conflicts of interest apply (see our study note on investment recommendations).