European Commission proposals for MiFID II, published in October, would ban commission for advisers operating on an independent basis.
Cicero Consulting Brussels analyst, Tim Gieles, says if the parliament’s amendment is accepted, the FSA will need a carve-out to ensure RDR regulations banning commission could continue. He says: “The FSA got a carve-out on the first MiFID and would need a similar one for MiFID II".
The FSA is confident it will have discretion to continue the commission ban, whatever the outcome of the Directive.
German MEP Markus Ferber, acting as rapporteur, says advisers should instead “clarify the basis of the advice they provide, notably the range of products they consider in providing personal recommendations to clients, whether the investment advice is provided in conjunction with the acceptance or receipt of third-party inducements”.
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