BBA has responded to two CESR consultations relating to MiFID:

  • on inducements. It agrees with most of CESR’s views on good and poor practice and explains why it thinks tax sales credits could be eligible for the “proper fees” regime; and
  • on the definition of advice. It explains how FSA has recognised that firms do not give advice to ECPs and how some of CESR’s suggestions for giving advice to professional clients are not workable. It agrees a clear definition is needed but does not agree it should be for the client to decide whether it considers it is getting advice or not. It also says there should be a clear distinction between investment advice and other, non-regulated, advice. It also feels some of CESR’s suggestions turn into personal recommendations things that would not normally be viewed as such. It is also concerned about how CESR apparently views filtering and decision trees as investment advice. Finally, it makes several suggestions on how to distinguish between investment advice and corporate finance advice.