The threat to execution-only share trading has been lifted after the European Parliament approved amendments to the Investment Services Directive that will exempt firms from onerous and expensive checks on the suitability of clients every time one of them trades.
The directive is the primary piece of legislation for the harmonisation of investment business across all of the member states and so there was great concern among the industry that a bad decision would lead to serious damage to the financial services industry in Europe.
However, the Association of Private Client Investment Managers and Stockbrokers pointed out that this was the first step in the legislation, not the last, and that threats to the no-advice firms could rear their heads again before the bureaucratic process runs its course.
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Investment trust savings scheme