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 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.
Article 19 in the document states: "When the investment firm informs the client that investment advice is provided on an independent basis, the firm.... shall not accept or receive fees, commissions or any monetary benefits paid or provided by any third party or a person acting on behalf of a third party in relation to the provision of the service to clients."
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).
Nicholl welcomed the move towards firms offering investment advice not to have remuneration set wholly or in part by product providers, but said the directive does not go far enough because it only covers independent advisers.
The market could be distorted if only one type of adviser is subject to the restrictions, she said.
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