Speaking at a recent event in Zurich, Maria Gracia Rubio de Casas, who is also a principal in law firm Baker and McKenzie’s Madrid office, said while the clarity the implementation of the MiFID review will bring is welcome “a number of important questions remain”.
Specifically, she said there are ongoing concerns from many in the industry regarding the requirements on intermediaries to separate advice and execution.
In a statement Baker and McKenzie said: “Although there is no contest that some banks may have mis-sold financial products, imposing a blanket obligation to treat all sales as advised sales is surely not the answer, as many cases of mis-selling have resulted from the lack of sufficient training on the part of the employees of banks branches to communicate the risks attached to sophisticated products.”
de Casas said the resulting mis-selling, which is at the heart of what the MiFID review is seeking to address, has led to a significant loss in the trust customers have towards banks and those selling financial products.
“Customers’ trust has been punctured by a series of scandals and entities can no longer rely on their clients’ implicit trust,” said de Casas.
“Rather, that trust has to be won again: demonstrating a clear understanding of clients’ needs, experience and understanding and transparency on the fees charged are essential pillars of that trust.”
