MEPs oppose FSA on commission in MiFID vote

The European Parliament has voted against a ban on commission payments in Europe in a move placing it at odds with the FSA's stance under the incoming Retail Distribution Review (RDR).

MEPs approved a draft of the Markets in Financial Instruments Directive (MiFID) today by an overwhelming majority, lending their backing to wording which allows payments from fund providers to advisers and distributors. Some 495 out of 529 MEPs voted through the directive, which runs counter to the FSA’s plan to outlaw commission in the UK retail market under RDR, which comes into force in January 2013. Instead of a ban, MiFID calls for increased transparency and disclosure of payments, and requires providers to avoid remunerating staff in a way that creates conflicts of interest betw...