AlphaValue is supportive of the French regulator (AMF) efforts to ensure a level field when it comes to sponsored research. Through an agreed upon Charter initiated and shared by the French Society of Financial Analysts (SFAF), sponsored research will be clearly labelled as such on its front page and free to read unless clearly specified otherwise on the front page.
That clarifies what corporates are really paying for and situations where brokers will be paid both by the corporate and by the buy side.
Since it began trading back in 2009 AlphaValue has always labelled its sponsored research as ‘AlphaValue Corporate Services’, including when posted on Bloomberg, always had the proper front page banner indicating that the research is paid for by the issuer and has always maintained total free access to its sponsored research by means of an ad hoc website (http://cs.alphavalue.com).
AlphaValue is also supportive of efforts to promote the French sponsored research charter across the continent where transparency about conflicts of interest is thin.
AlphaValue strongly believe that sponsored research is a good alternative to the absence of buy side paid research on smaller caps and that clearer regulatory backgrounds should help circulate that research widely which really is what the issuer is paying for.
Wide equity research circulation is the best way to protect market participants from mispricing, ensure markets depth and thus the proper funding of smaller companies’ growth plans.
Read the full story (in french) : https://www.lesechos.fr/finance-marches/marches-financiers/une-charte-de-bonnes-pratiques-va-encadrer-la-recherche-sponsorisee-1357304