In order to continue to attract the attention on the capital market in the future, "smaller issuers in particular will need to act", concluded the report, which was issued by Deutsche Boerse, the German Investment Funds Association (BVI), the German Share Institute, the German Investor Relations Association, and the German Society of Investment Analysts and Asset Managers.
Crucially, research services for SMEs will no longer be free of charge when MiFID II comes into force on 3 January 2018.
Market participants expect the new rules are to reduce the demand for research among larger market participants, while SMEs will need to purchase research to a greater extent.
The study also suggested that issuers should undertake more effort themselves to ensure that their securities are analysed.
Thomas Richter, CEO at BVI, said: “MiFID II will change quality of research. Investors will consider more carefully in future which analyses are good and how much they want to pay. Small and medium-sized issuers will then have to make an effort to stay on the radar.”
Renata Bandov, head of listing at Deutsche Boerse, added: „We already considered that smaller and medium-sized enterprises in particular will face challenges when we were developing our SME segment Scale.”
“That is why we decided that all Scale issuers will receive mandatory research that we commission as the stock exchange. The reports ensure more transparency and visibility for investors.”