Sweden’s minister for Financial Markets and Consumer Affairs, deputy minister for Finance Per Bolund has confirmed the government will be proposing legislation in response to EU directives such as Mifid II and IDD (Insurance Distribution Directive), which will not ban commission-led sales of financial advice and products.
The proposal has been welcomed by the Swedish Investment Fund Association, which says that it means competitiveness on a level playing field will be maintained, and that fund investors will continue to have access to a broad range of funds from different manufacturers as well as advice.
The legislation forms part of the government’s consumer protection agenda.
“The ambition is to reach a balanced solution, which supports good advice to customers at the same time that household needs to access financial services are met in a good way,” said Bolund (pictured).
Part of the legislative package affects regulations around third party remuneration, including commission payments. The starting point for the proposals put forward is that the regulations should apply as equally as possible to create a level playing field betweeen those who offer financial advice to consumers, both regarding financial instruments and insurance-based investment products – such as unit-linked products.
“Collectively, the package of rules will work together to limit problems of conflicts of interest, while at the same time strengthening consumer protection in several different ways. The pending regulations should exclude those types of remuneration that are not in the customer’s interests. Therefore the government is not going to introduce a general ban against third party remuneration or commission ban at this stage,” Bolund added.