Washington — The US Securities and Exchange Commission (SEC) is preparing to give Wall Street a reprieve by telling financial firms they will not have to overhaul their operations to comply with sweeping new European rules governing investment research, said three people familiar with the matter. By the end of the month, the SEC is expected to provide formal assurances that it will not object if brokerages break out the cost of market analysis for their European clients, rather than bundling it together with other services, the people said. Europe is requiring that brokers charge separately for research, but doing so could violate US regulations. At issue is Europe’s coming ban of a practice that has been routine at global banks for decades: Issuing fund managers one bill for everything from executing trades to analysing stocks and bonds. Europe’s goal is to give investors more transparency into how much they pay for specific services, while incentivising brokers to produce higher-q...
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