(3)Trust in the quality and objectivity of issuer-sponsored research is essential to revitalise the research coverage of companies, in particular small and medium-sized enterprises (SMEs). To ensure that investors can develop trust in duly labelled issuer-sponsored research, investment firms should not use or distribute to their clients issuer-sponsored research whose quality they cannot assess. Investment firms should check that the provider of issuer-sponsored research has in place adequate organisational arrangements, equivalent to those required for research under Commission Delegated Regulation (EU) 2017/565note. To avoid a negative impact on the quality of the research due to its sponsored nature, the relationship between the research analyst, research provider and issuer should be clearly specified and made transparent to users of the research.
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