A parliamentary vote saw 495 MEPS cast their ballot in favour of Mifid with its current wording, which does not include an outright ban on commission payments to advisers and distributors.
Some 15 MEPs voted against the directive against and there were 19 abstentions.
However, Mifid does call for increased transparency and disclosure of any commission paid to advisers and distributors by product providers instead of an outright ban.
The European Parliament’s version of the directive will now be placed alongside revisions suggested by the European Council. The European Union will then decide the final directive and it will be implemented in 2013.
Despite the lack of a Europe-wide commission ban, EU member states are permitted to prohibit inducements if they choose. Countries opting to do this include the UK through the retail distribution review and France.
