Conservative MEP Ashley Fox has written to the European Commission to query whether the retail distribution review breaches Mifid by imposing stricter requirements on UK advisers than those passporting into Britain.
The MEP for South-west England and Gibraltar says UK investment advisers are subject to the requirements of the RDR whereas other advisers passporting in from Europe are not.
Fox has asked the EC for guidance on whether this breaches Mifid and what the Commission will do to ensure the RDR does not go beyond the scope of Mifid.
Fox says: “We do not want UK financial advisers being put at a competitive disadvantage because regulation has been over-enacted. We cannot have people who qualify in Britain being subjected to one regime and those who passport in being subject to a lighter one.”
An FSA spokeswoman says that the RDR does not breach Mifid and adds that if consumers want an adviser that is subject to the RDR they will be free to choose a UK-based firm.
She says: “Any European adviser that sets up a firm in the UK will need to meet the RDR requirements but if they passport in they will be regulated by their home regulator. We are not concerned that there will not be a level playing field. Consumers will be free to shop around and choose whichever adviser they want.”