FBE: First Part Response to CESR's 2nd set of Mandates on MiFID

04 April 2005

The European Banking Federation (FBE) issued its response on CESR's 2nd set of Mandates on MiFID, stating that CESR should not provide any advice on lending for financial transactions, above all because the proposed requirement does not have any concrete basis in Level 1 and would go against the stated objectives of MiFID.

The Federation also does not believe that what CESR refers to as “generic advice” in fact exists, and do not believe that there is any justification for including generic information provided to clients in the definition of investment advice. FBE reiterates that advice has to be explicit; otherwise, from a purely practical point of view, it would be impossible to establish clear legal boundaries for what constitutes advice.

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