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Where now for commissions in Europe? 

October 16, 2015

Paul Stanfield, chief executive at FEIFA, International Adviser

European regulators eventually “stood back from the brink” and within the agreed text of both MiFID 2 and the Insurance Distribution Directive (IDD) fell short of a complete commission ban – a ban that many thought might well happen as little as 12 months ago!

Of course, MiFID 2 does ban commissions (and any third party remuneration) for independent advisers but, quite significantly for most intermediaries across Europe, not for “non-independents”. And the IDD (which is effectively IMD 2) has drawn back from any commission ban at all.

 

It is also true that, under either Directive, the NCAs (National Competent Authorities – national regulators to you and I) can “gold plate” the terms; in other words the commission bans in countries such as the UK and the Netherlands can remain, but much of mainland Europe seems unlikely to do this, at least at this time.

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