According to today’s Financial Times, the parliament’s Committee on Economic and Monetary Affairs (Econ) "has removed all references" to any ban on commission payments to financial advisers in amendments to the draft of the revised markets in financial instruments directive (Mifid).
The move follows a ban that was confirmed last week by the Financial Services Authority of the payment of commission from a fund provider to IFAs and platforms.
According to the FT, the original proposal to ban commission payments had been drafted by the European Commission, which, it noted, remains in favour of protecting investors against biased advice by banning such payments completely, rather than by legislating for greater transparency.
However, the FT added, the majority of the Econ members did not support such a ban. It quoted Swedish MEP Olle Schmidt as saying that such Econ members believed "a more balanced approach is needed. There are other ways of safeguarding investor protection."
