“We expect an immediate reaction,” said the EU finance commissioner in an interview with the Handelsblatt.
(Photo: Reuters)
Stockholm Speeches by EU commissioners rarely leave a lasting impression. However, the appearance of Finance Commissioner Mairead McGuinness last Thursday electrified the financial sector: the Irishwoman announced at a specialist conference in Stockholm that she did not want to introduce a complete ban on commissions for financial advisors after all.
The reactions came promptly: asset managers and insurers were relieved that they could continue to sell their products on commission. Consumer advocates, on the other hand, came in for sharp criticism. The Commission jumped like a tiger and landed as a bedside rug, said Britta Langenberg from the Finanzwende citizens’ movement.
>>Read here: The financial industry has won a dubious victory
In an interview with the Handelsblatt, McGuinness is now defending her decision. “Some are disappointed that there is no ban,” she said. But many consumer advocates are satisfied with the direction they are taking. In her speech she made it very clear that something has to change in investment advice. “The status quo doesn’t work,” she insisted.
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