The Treasury has voiced concerns over the Mifid II proposal to restrict a ban on commission to independent advisers, saying it could distort the advice market.
A draft of Mifid II, which was revealed by Money Marketing last month, suggested that restricted advisers may be allowed to receive commission under the directive.
Speaking today at the Association of Private Client Investment Managers and Stockborkers annual conference, Treasury financial secretary Mark Hoban said: “We remain concerned with the details to restrict a commission ban to independent advisers.
“We believe it could distort the market if you allow advisers to continue to receive inducements from third parties for simply dropping the label independent.”
Hoban went on to add the Treasury would “continue to fight” to make sure Britain continued to be at the forefront of changes in European financial services.