The concept of ‘direct offer' business may have to undergo reform in the UK as proposals inside the MiFID directive suggest product purchases can only be considered ‘execution-only' if the client approaches the firm ‘on their own initiative'.
According to speakers at an FSA conference earlier this week - designed to provide further insight into the proposed implementation of the Markets in Financial Instruments Directive (MiFID) - work is still being undertaken by regulatory and industry officials as there is “confusion” as to what the execution-only concept could mean under MiFID, and whether there is any ground to change the terms of the directive. As it currently stands, the sale of investments and associated products could in the future only be considered to be execution-only under MiFID if the client “makes the advance [f...
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