The European Commission believes there is insufficient evidence to remove the existing professional indemnity insurance requirements, but says it will "continue to monitor the situation".
The Markets in Financial Instruments Directive (MiFID) required the Commission to present a report to the European Parliament on the continued appropriateness of the PII requirements imposed on financial services intermediaries under EU law.
The Commission says analysis of the information provided by member states and stakeholders suggests the policy reasons which motivated the PII requirements remain valid and there is insufficient evidence to indicate they are no longer appropriate.
But it adds it is too early to make a comprehensive assessment of how the requirements impact on intermediaries and consumers, and a proper evaluation will not be available until the recast Capital Adequacy Directive (CAD) has been applied in member states for at least one year.
Charlie McCreevy, internal market and services commissioner, says: “On the available evidence we should keep the existing indemnity insurance requirements, but since it is too soon for a full assessment we will continue to monitor the situation.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7034 2680 or email [email protected].IFAonline
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