After Britain's exit from the European Union, the European Union rules for researching stock market noodles have been abolished, which is good news for the City of London.

EU stock market research, on which the UK's £9 trillion funding Koon's industry relies, will be abolished, which will boost the City of London's development after Brexit.

The Financial Conduct Authority (FCA) is consulting on plans to abolish the legal requirement for fund managers to pay separately for research on UK-listed companies.

The EU has ruled that stockbrokers may not "bundle" their research into a package of trading services sold to fund managers in 2018.

According to the FCA, the current system is too complicated for smaller fund managers.

The current sluggishness of the UK stock market has also been attributed to this system, with a lack of research leading to a reduction in investment in UK equities.

Under the new proposal, the research fee and the transaction fee would be treated as one-time payments.

Sarah Pritchard, Director of the FCA, says: "High-quality, easily accessible investment research is an essential component of healthy, vibrant capital markets. It helps investors make decisions.

"We propose to provide more choice in how such research is paid for, to help promote competition and make it easier to buy research across borders.

These rules are part of the Brussels MiFID II rules manual, which was introduced in early 2018 prior to the UK's exit from the EU.

Prior to this, fund managers were able to obtain free company research reports from stockbrokers.

This reform has led to a shortage of research on UK companies as brokers have reduced the provision of research.

"One of the main reasons for the City of London's current malaise is the lack of investment research to inform decision-making," says Fraser Thorne, founder of investment research company Edison.

"Asset managers and institutional investors still don't understand the breadth of the opportunity, and innovative start-ups can only go unnoticed.

The EU also plans to abolish these rules, but it will take longer.

It will take two years for the rewrite to be enacted among the 27 members of the trade bloc, meaning that the City of London will be one step ahead of the rest of Europe.

The problem with this reversal is that most brokers and banks disbanded their research departments after the introduction of the MiFID II research spin-off rules, so it is unlikely we will see any immediate improvement," said Mark Shaw, a resonance partner at Pinsent Masons. It is unlikely that we will see any immediate benefit from this, although this may gradually recover over time.

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