Mifid II commissions uncertainty could create split

Author: | Published: 20 Jul 2011

Huge discrepancies between European member states over the treatment of commission payments to distributors in Mifid II is likely to lead to another EU split. The EC’s Mifid II rules are expected in autumn, and the Commission’s proposals suggest bans on all third party inducements. But the Netherlands, the UK, Denmark and France all differ wildly in their views on commission payments for distributors. Few observers are shocked by the divergent opinions amongst member states over these inducements, with often large discrepancies between countries’ domestic financial advisory markets. The Netherlands is calling for an outright ban on commission, known as...