BETTER FINANCE Applauds and Supports Proposed Ban on Sales Commissions Paid to Retail Distributors of Investment Products

Date: 25th October 2022
Type: Press Releases

BETTER FINANCE considers the recent proposal to ban “inducements” (commissions) in “retail” investment services to be a very significant milestone in investor protection and firmly urges EU Member States to also support it.

EU authorities are currently working on the reform of rules surrounding market structures and execution of client orders, namely the EU Regulation and Directive on Markets in Financial Instruments (MiFIR/ MiFID II). The EU Commission was brave enough to propose an outright prohibition for investment firms to receive commissions for directing client orders to certain (often “dark”) execution venues.