The 19 member states include Belgium, France, Greece, Luxembourg, Netherlands, Portugal, Spain, Malta, and Sweden, among others.
According to the commission, the offending countries have failed to update the regulator on the progress they have made in transposing MIFID II into domestic law.
Under MiFID II, set to come into effect on 3 January 2018, investment research must be bespoke to each institution, and investment firms must pay for research with their own funds, or through a separate designated account, which is charged to the client.
The European Securities and Markets Authority (ESMA) has been resolute in its stance the no further compliance extensions will be offered ahead of January.
This means that post-trade issues such as research payment policies need to be addressed sooner rather than later.