Piper Sandler and Stifel Financial have asked a judge in Manhattan federal court to be freed from what they describe as "onerous" restrictions stemming from the U.S. Securities and Exchange Commission's global settlement from over two decades ago.
The firms argue that the consent decree's requirements, including building "firewalls" between research and investment banking, place them at a competitive disadvantage. They state that nearly all rivals are held to looser standards approved by the SEC in 2015.
Piper Sandler and Stifel contend that the disparate treatment makes it harder to compete with other middle-market banks and larger institutions. They also assert that the decree harms the public interest by creating different protections for research and making it difficult for smaller companies to raise capital due to compliance costs.
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