APFA responds to ESMA consultation on MiFID II
05 August 2014
The Association of Professional Financial Advisers (APFA) has responded to the European Securities & Markets Authority’s consultation on the implementation of MiFID II.
Clare Griffiths, Senior Policy Adviser at APFA, said:
“While we broadly support the aims of the new MiFID directive in ensuring financial firms meet the highest standards when dealing with customers, we are concerned about the potential cumulative effects of the new rules on the advice sector.
“The measures being proposed include recording telephone calls, asking clients to sign minutes of meetings and specifying the time periods for issuing reports to clients and having reviews. This will add a significant burden to firms as the costs of compliance surge. Worryingly, it is smaller firms who will feel the impact of this the most. This ultimately risks excluding even more consumers from being able to access affordable regulated advice, because the cost of the advice will inevitably increase.
“Advisers recognise that greater clarity for consumers is critical, but simply increasing the amount of paperwork they need to read through is not the answer. Consumers don’t want to read through reams of small print. Regulators need to get smarter at developing frameworks for transparency and disclosure that are consumer friendly, rather than simply increasing the amount required.
“We will continue to make the case for a regulatory framework which is fair and proportionate for consumers and advisers including through our membership of BIPAR, the European Federation of Insurance Intermediaries.”
To read APFA’s full response, please visit http://www.apfa.net/policy/responses/APFA-response-ESMA-consultation-on-MiFID-II-august-2014.pdf.
ENDS
