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MEP in last-ditch appeal on execution-only services

A British MEP is lobbying the European Parliament in a last-ditch attempt to change part of a controversial new directive that would make execution-only services a thing of the past.

Conservative finance spokeswoman Theresa Villiers is demanding that the EP changes section 18 of the Investment Services Directive which will basically outlaw execution-only business.

The ISD aims to increase investor protection but currently proposes annual suitability tests for customers of firms that offer investment transactions without advice. There will be an EP vote on June 12 on all proposed amendments to the directive.

If the key vote goes against the changes, the bill in its current state could be finalised as early as the end of July before the current Greek presidency finishes its term.

Association of Private Client Investment Man-agers and Stockbrokers head of European affairs Catriona Shaw says: “The timetable for completing the ISD is very tight. It has taken two years for it to reach its first reading and there is now pressure to get it all approved before the end of this presidency.”

Chelsea Financial Services managing director Darius McDermott says: “We hope common sense prevails and support any amendment to the directive which in its current state could be a serious threat to discount and execution-only broking.”

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