MEPs have rejected draft rules which would have capped advisers’ fee rates as part of upcoming European packaged retail investment products regulations.
The European Parliament voted yesterday to exclude a clause which would have capped advisers’ hourly charges at €200.
The clause states: “When an hourly rate is charged, the total amount charged for providing advice shall not exceed €200.”
Apfa director general Chris Hannant says: “We have been campaigning hard on this and badgering MEPs across the spectrum.
“I don’t think price caps work full stop. It is not clear whether the cap would have been imposed on all financial advice or limited to Prips products, but it could have had a cataclysmic effect on advisers.”
He adds: “This is the parliament’s final word on it. The council has to approve its own version of the text and the two will then be reconciled, but I cannot see any member state putting forward anything as stupid as this.
“When the two versions are reconciled nothing new can be added so this should be the end of this proposal.”
In February Money Marketing revealed Economic and Monetary Affairs committee chair Sharon Bowles was pushing for a crackdown on “excessive” advice charges through Prips.