The EU Commission is once again bringing into play a ban on commission-based investment advice.
Financial market commissioner Mairead McGuinness wrote a letter to CSU MEP Markus Ferber this week, complaining that the MiFID II financial market directive, which has been in force since 2018, "contrary to the intentions pursued with it", has not led to more independent, commission-free advice.
This usually means higher costs than necessary, especially for private investors with a small portfolio.
Werner Mussler
Business correspondent in Brussels.
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The Commissioner cited a study according to which consumers therefore paid an average of 35 percent more than in the case of fee-based advice.
"So MiFID reform has not resulted in consumers getting more for their money," wrote McGuinness.
In its original proposal for the MiFID amendment of 2011, the EU Commission had already envisaged a ban on commission advice.
This provision was then converted into an optional provision by the European Parliament.
The Commissioner stressed that it was still open what proposals her authority would make as part of the "Retail Investment Strategy" due in the spring.
The Commission is currently evaluating the results of a consultation and examining possible options.
In a letter to McGuinness, Ferber had previously campaigned against a ban and pointed out that for many small investors it was not worth hiring an external consultant for a fee.
It is cheaper for them to get advice that is partly based on commissions.
McGuinness countered that there are other inexpensive options, such as robots.
“I am more than surprised at how vehemently the Commissioner advocates a commission ban.
For me, driving private investors to automated advice on the Internet is not a contribution to more consumer protection," said Ferber of the FAZ