On 24 May, the European Commission adopted a package of retail investment measures (the “Retail Investment Strategy” or the “Proposal“), aimed at protecting the interests of retail investors by empowering them to make investment decisions that are aligned with their needs and preferences.
Among the objectives it pursues, it is worth noting that the European Commission’s own press release states that the Proposal addresses ‘potential conflicts of interest in the distribution of investment products by banning inducements for all “execution-only” sales’.
This settles, at least until the approval of the final draft of the regulation presented by the Commission on 24 May, the question of whether the charging of inducements (retrocessions) in advisory services will continue to be allowed, since, according to the European Commission’s position, they will only be prohibited in pure marketing services.
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