The European Commission’s partial ban on inducements and retail investment strategy: What are the consequences for financial services providers and consumers?
EU Finance Commissioner Mairead McGuinness has conceded to pressure from lobbyists and halted plans for a complete ban on inducements for financial advisors. However, at the end of May, the Commission is expected to announce a ban on inducements for “execution-only” transactions as part of its retail investment strategy and a revision clause that allows for a complete ban on inducements in the future. These developments will have noticeable consequences for financial services providers and consumers. Partner Max Biesenbach and Senior Director Sonia King at the global strategy consultancy