A key vote which could see the European parliament officially object to proposals to ban commission for independent advisers has been delayed until at least September.
The Economic and monetary affairs committee was set to vote on its package of amendments to the Markets in Financial Instruments Directive II tomorrow morning. However, a lack of progress on agreeing some parts of the EP’s response to the Commission’s proposals means the vote has been delayed until after the summer recess. Money Marketing first reported the delay could be coming last week.
Econ chair Sharon Bowles says the European Commission, parliament and council are too busy to begin three-way negotiations to hammer out final rules.
She say: “The vote has been delayed because there is still work to do and in any event there is no imminent prospect of trialogues starting. When the time comes it will be a priority but we have 10 dossiers at the trialogue stage now which is more than can be dealt with and any one time.
“Recent Libor fixing events also mean we have to look a lot more closely at benchmarks, and maybe regulate them.”
The European Commission proposals for Mifid II, published in October, would ban commission for advisers operating on an “independent” basis. In its March response to the Commission’s plan, the parliament proposes an amendment so all advisers simply have to disclose any commission, tomorrow’s vote would have finalised the EP’s position. In June, the Council’s response came out backing the Commission’s proposed ban. Individual regulators are still likely to be able to enforce their own commission ban, as the FSA will be doing through the RDR.
Once the Econ vote has happened, the three bodies will enter negotiations known as a trialogue to hammer out the final rules. Those rules would then have to be given ascent by the a full vote of the European parliament. That vote was originally set for October but could be delayed if the Econ vote is.