CESR has published a feedback statement summarising the responses to its consultation on investor protection and intermediaries. It published its advice to the Commission in August (see FReD This Week 6 August 2010). The feedback summarises the main messages from the responses, which include:
- lack of support for a compulsory recording requirement, but those who supported it preferred a minimum harmonisation approach. Some respondents offered partial support saying recording should apply to certain firms only;
- problems in developing European execution reports along the lines of US rule 605 report;
- some agreement with CESR's proposal to treat all shares that embed derivatives as complex instruments, but most respondents disagreed with the idea of classifying products according to the notion of complexity;
- many respondents disagreed with CESR's proposal intended to clarify that the internet could be used to deliver a personal recommendation and said CESR was blurring distinctions between investment advice and investment research; and
- concern about the proposal that tied agents should not handle clients' money or assets, but this may have been based on a misperception that CESR was bringing rules for credit institutions within MiFID.