One of the unintended consequences of MiFID II is the cooling effect unbundling of research from dealing commission is likely to have on small and medium size companies. By their nature these companies need analysts and research to highlight the opportunity to the buy side and a tightening in research budgets is likely to have a disproportionate impact on them, restricting the potential for small and medium sized companies to raise capital, which can only have negative consequences for the European economy. The below clarification from the FCA although limited in scope should be welcomed and I hope this interpretation will also be adopted by the CBI and ESMA as it relates to Irish MiFID firms.