The European Commission has confirmed that advisers passporting into the UK through Mifid will not be subject to any new conditions introduced by the retail distribution review.
Temple Bar IFA managing director Simon Mansell wrote to EU internal markets commissioner Charlie McCreevy requesting clarification on the effect that the RDR would have on Mifid advisers.
A letter of response from EC head of unit, financial markets infrastructure, Mario Nava states that any requirements will not restrict or otherwise affect the rights of investment firms under Mifid.
Nava says: “This means that such measures should not be applied to non-UK firms providing services in the UK on a cross-border basis or operating in this member state through a branch.
“My services will discuss with the FSA and monitor closely the RDR review to avoid situations that might be inconsistent with the Mifid.”
Mansell says the proposals made under the RDR are not in line with the objectives of the EC and will contradict Mifid’s aim of harmonisation across Europe. He says: “I do not understand why the FSA did not consult the EU bef-ore spending thousands of pounds on the RDR. I would have thought its first port of call would have been Europe.”