FSA loophole gives MiFID some leeway

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Advisers can continue to sell complex products to 'intermediate' clients after MiFID is introduced b...

Advisers can continue to sell complex products to 'intermediate' clients after MiFID is introduced because of a loophole created by the FSA. Law firm CMS Cameron McKenna said the latest proposals from the FSA allow individuals classified as 'intermediate' customers to be 'grandfathered' into the 'professional client' bracket of MifID without having to meet any of the new criteria. Intermediate customers include individuals with enough expertise - measured by net worth and size of portfolio, for example - to be afforded less protection than 'private' customers have. The FSA's paper states...

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