The Markets in Financial Instruments Directive will introduce a "degree of distortion" into the regulator's handbook by placing undue emphasis on certain rules, says the Association of IFAs.
Fay Goddard, deputy director general of AIFA, points out the FSA is in the process of cutting the size of its handbook by 50% as part of its move towards more principles-based regulation, but at the same time it is required to include very detailed MiFID rules. She states: “This means we don’t end up with a principles-based high level rulebook and if someone is completely new to the industry they might think there is undue emphasis on something. MiFID leaves the rulebook with a degree of distortion.” Callum McCarthy, chairman of the FSA, says the regulator is committed to a rebalancin...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
