MEPs oppose FSA on commission in MiFID vote

clock

The European Parliament has voted against a ban on commission payments in Europe in a move placing it at odds with the FSA's stance under the incoming Retail Distribution Review (RDR).

MEPs approved a draft of the Markets in Financial Instruments Directive (MiFID) today by an overwhelming majority, lending their backing to wording which allows payments from fund providers to advisers and distributors. Some 495 out of 529 MEPs voted through the directive, which runs counter to the FSA’s plan to outlaw commission in the UK retail market under the RDR, which comes into force in January 2013. Instead of a ban, MiFID calls for increased transparency and disclosure of payments, and requires providers to avoid remunerating staff in a way that creates conflicts of interest ...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA urged to 'think again' on targeted support annuity rules

FCA urged to 'think again' on targeted support annuity rules

Regulator’s MoneyHelper signpost criticised as a ‘real limit’

Isabel Baxter
clock 03 September 2025 • 2 min read
FCA continues data reporting cuts

FCA continues data reporting cuts

Regulator removes more data returns

Isabel Baxter
clock 28 August 2025 • 1 min read
Regulatory and employment-related changes – what do firms need to prepare for?

Regulatory and employment-related changes – what do firms need to prepare for?

‘Getting these issues right is not just about avoiding regulatory action or tribunal claims’

Sophie White
clock 21 August 2025 • 4 min read