EU wants to ban you from making your own investments.

[DonkeyApple]

A very interesting period lies ahead for the UK. If the EU were to actually go ahead with the full outline of their consultation paper then it makes for an interesting scenario as there are proposals to ban retail clients from making their own investment descisions and force them to pay for an IFA for every single financial action they wish to undertake:

http://citywire.co.uk/wealth-manager/apcims-slams-...

The reality is that the financial services sector in the UK would have little choice but to either depart these shores or more relevantly, the UK would have no choice but to leave Europe as it is still far too reliant on the tax reciepts from the financial sector.

[TooLateForAName]

I can't be bothered to read the whole thing (I think the scaremongers should provide appropriate quotes if they want us to pay attention) but as I read it they are not talking about ordinary investments but 'financial instruments'.

Isn't this a response to the number of very opaque instruments which have been punted around and rather screwed the investors?

[ShadownINja]

If it's true, then it certainly re-defines who won that military-based argument in the 1940s.

[DonkeyApple]

TooLateForAName said:

I can't be bothered to read the whole thing (I think the scaremongers should provide appropriate quotes if they want us to pay attention) but as I read it they are not talking about ordinary investments but 'financial instruments'.

Isn't this a response to the number of very opaque instruments which have been punted around and rather screwed the investors?

As it currently stands, it implies any product which is not a vanilla equity, so the end of SIPPs, spread betting, CFDs and many conventional funds.

The kicker here is funds. The last 10 years has seen people dump the IFA and by funds direct from the likes of Invesco, Hargreaves etc. This would end as you would be forced to pay an IFA a fee in order to even purchase a FTSE tracker fund.

It'll be interesting to see how this goes, the paper only appeared in Dec and the consultaion finishes in just over a months time so it does appear to being slammed through as a fait a complet.


The EU is controlled by France and Germany who do not have an execution only market like the UK. They will be very keen to kill this off as it will have a devastating impact on London's ability to compete against other Eu markets.

It would appear to be a direct assault on City revenues and thus the UK's revenue.

[nomisesor]

Matthew Vincent in today's FT is having a (potentially justified) rant about this (Mifid II)- "most offensive among these is the proposal to ban execution-only sharedealing and non-advised funds sales. Under Mifid I, execution-only investment services are still permitted if they trade "non-complex financial instruments". However, uncertainty over what constitutes a non-complex product - and, presumably, what constitutes a simpleton investor - has prompted the internal market commissioner to [make everything have to go through an IFA]".

[jeff m]

So the average IFA would give me swaps advice.

[DonkeyApple]

jeff m said:

So the average IFA would give me swaps advice.

For a fee. An IFA will always be better placed to advise you on all your financial matters than you will ever be as you are a frail and not very smart non IFA.

The IFA will also be taking over the servicing of your wife as you won't be allowed to use the old chap and you will have to start sitting down to go to the toilet.

I think the next few months will be fascinating because if no one can change the minds of the almighty EU then The UK party which promotes the swiftest exit from Europe is likely to clean up at the next election. This is a pretty big event that is being proposed.

[DonkeyApple]

jeff m said:

So the average IFA would give me swaps advice.

For a fee. An IFA will always be better placed to advise you on all your financial matters than you will ever be as you are a frail and not very smart non IFA.

The IFA will also be taking over the servicing of your wife as you won't be allowed to use the old chap and you will have to start sitting down to go to the toilet.

I think the next few months will be fascinating because if no one can change the minds of the almighty EU then The UK party which promotes the swiftest exit from Europe is likely to clean up at the next election. This is a pretty big event that is being proposed.

[ShadownINja]

I agree IFF (note the two Fs) all qualified IFAs in the UK made a killing by predicting the recession and shorted the FTSE. What? You mean they didn't see it coming either? fk them, then.

[ringram]

Utter bks if they did this. Surely would be struck down under the Competition Commissions own remit.

How about an opt out requirement. (ie) If you are mentally retarded then you can do nothing and be forced through an IFA. But if you want to you can opt out of the requirement at an individual level. Job done. "Vulnerable Adults" protected from their own pointless existence with the rest going on with business as usual.

[LeoSayer]

Retail customers also struggle with the concept of mortgages, overdrafts, insurance and buying a car or even a mobile phone where claims of 'mis-selling' are rife.

Perhaps all individuals should have to take an exam to prove that they understand these products before are allowed to be parted from their money.

Edited by LeoSayer on Monday 17th January 13:02

[DonkeyApple]

LeoSayer said:

Retail customers also struggle with the concept of mortgages, overdrafts, insurance and buying a car or even a mobile phone where claims of 'mis-selling' are rife.

Perhaps all individuals should have to take an exam to prove that they understand these products before are allowed to be parted from their money.

Edited by LeoSayer on Monday 17th January 13:02

Education?

Not in the UK thank you. No, taxation and fees are the way forward.