The Markets in Financial Instruments Directive is to be voted on next week and, according to the Financial Times, any mention of a ban has been removed from the discussion paper by the Committee on Economic and Monetary Affairs.
This move follows the ban that was confirmed last week by the FSA of the payment of commission from a fund provider to IFAs and platforms.
This has been on the cards for a long while in the UK – with RDR the driver of its ultimate demise. But there is no chance that if it is allowed in Europe that it will be reversed in the UK as the Committee on Economic and Monetary Affairs allows individual European Union members to take their own stance on commission payments.
The Committee is instead taking a tougher stance on the information disclosed, ensuring there is no conflict between the provision of advice and the products then sold, and their suitability to the client.
The vote on any amendments will be taken on 9 or 10 July.