No conflict between MiFID and commission rebates

In a letter to its members last week, Aifa stated the section of MiFID relating to inducements “leaves a question mark over cases where advisers charge a client a combination of fee and commission, as the recital states that commission is only acceptable when the customer does not pay for the advice”. But Vera Cottrell, policy adviser at Aifa, says the issue has been resolved following a meeting with the Treasury yesterday in which it told Aifa commission rebates do not fall under MiFID because they are disclosed in the menu. Although he would not comment on the meeting specifically, ...