IFAonline: Independent firms singled out for commission ban in MiFID II draft

30 September 2011

A draft copy of the European MiFID financial services reforms has singled out independent firms for the ban on commission, but stops short of confirming that the rules will also apply to other advisers.

The draft European Directive stipulates that independent advisers should not accept remuneration from any third party except the client. However the draft rules leave out whether commission is therefore allowed to be paid to advisers who only offer restricted services.

Final rules from Europe are expected later this month. The FSA will then have to apply the directive to the UK, under the EU's 'maximum harmonisation' rule. In June, FSA director of conduct policy, Sheila Nicoll, raised concerns over the implementation of key European Directives, including MiFID and the proposed regime for packaged retail investment products (PRIPs).

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