The Treasury is concerned the EU directive MiFID II will distort the UK advice market by restricting the commission ban to independent advisers.
A draft version of the directive leaked last month said the commission ban should apply to IFAs only.
Speaking at an APCIMS conference in London this morning, Treasury financial secretary Mark Hoban said: "We remain concerned with details to restrict the ban on commission to independent advisers."
He said the Treasury would "continue to fight" to ensure Britain remains at the forefront of developments in financial services.
Last month's draft European directive stipulated 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.
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