AIFA has called on the European Commission (EC) to abandon plans to undertake its own style of RDR for at least five years.
The trade body says any Euro-wide review should wait until the impacts of the Insurance Mediation Directive (IMD) and Markets in Financial Instruments Directive (MiFID) are fully realised.
The European Commission has called for evidence on how well the European retail financial services market works and the reasons why consumers buy the investment products they do.
However, AIFA director general Chris Cummings says the EC should not rush into further regulatory change.
"The impact of the IMD is yet to wash through the European market – and the MiFID has only just been introduced,” he says.
“The scale of regulatory change introduced by just these two directives should not be under-estimated: it will take a period of at least five years to understand the structural changes they will bring about.”
Cummings has also urged the commission not to take a product centred approach based on substitutable products and to clearly differentiate between different types of firms.
“The first type is those firms who are the agent of the client, who only act in the best interests of their clients by offering personal financial advice,” he says.
“The second type of firm offers sales driven practices that benefit the firm not the consumer – they do not offer advice and should not be allowed to let the customer infer that they do."
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