The European Federation of Financial Advisers and Financial Intermediaries (FECIF) criticised what it called “a highly anti-democratic” measure in a letter to Michel Barnier, European Commissioner for Internal Market and Services.
The EC’s proposals for the Markets in Financial Instruments Directive (MiFID) II, published in October 2011, include a ban on commission for advisers operating on an ‘independent’ basis.
But the FECIF has now lent its support to a proposed amendment to MiFID II, challenging the ban.
“Our association is very concerned by the inflexible position taken by the EC as part of the review of the MiFID and IMD (Insurance Mediation Directive) calling for a ban on payment of commission and/or inducements to intermediaries,” the letter, signed by Board chairman Vincent Derudder, reads.
“There is no other example in the past of a prohibition imposed by the EC to a sector to get a proper remuneration for a job performed under an already extremely strict regulatory environment.
“We therefore strongly urge you to avoid pushing some 200 to 300,000 European intermediaries out of work thanks to the provisions in this regulation.”
