4 Amendments of Catherine STIHLER related to 2011/0298(COD)
Amendment 289 #
Proposal for a directive
Recital 52
Recital 52
(52) In order to give all relevant information to investors, it is appropriate to require investment firms providing investment advice to clarify the basis of the advice they provide, notably the range of products they consider in providing personal recommendations to clients, whether they provide investment advice on an independent basis and whether they provide the clients with the on-going assessment of the suitability of the financial instruments recommended to them. It is also appropriate to require investment firms to explain their clients the reasons of the advice provided to them. In order to further define the regulatory framework for the provision of investment advice, while at the same time leaving choice to investment firms and clients, it is appropriate to establish the conditions for the provisions of this service when firms inform clients that the service is provided on an independent basis. In order to strengthen the protection of investors and increase clarity to clients as to the service they receive, it is appropriate to further restrict the possibility for firms to accept or receive inducements from third parties, and particularly from issuers or product providers, when providing the service of investment advice on an independent basis and the service of portfolio management. In such cases, only limited non-monetary benefits as training on the features of the products should be allowed subject to the condition that theyse services do not impair the ability of investment firms to pursueact in the best interest of their clients, as further clarified in Directive 2006/73/EC. To further protect consumers, it is appropriate to ensure investment firms do not remunerate or assess the performance of their staff in a way that conflicts with the firms duty to act in the best interests of their clients.
Amendment 712 #
Proposal for a directive
Article 24 – paragraph 3 – subparagraph 1 – indent 4
Article 24 – paragraph 3 – subparagraph 1 – indent 4
– costs and associated charges, which must include the cost of advice and how the client may pay for it.
Amendment 763 #
Proposal for a directive
Article 24 – paragraph 6
Article 24 – paragraph 6
6. When providing investment advice, portfolio management the investment firmor another service whereby a retail client is entitled to rely upon its judgement the investment firm: a) shall only be remunerated through charges payable by or on behalf of the client, and shall not solicit or accept any other payments or benefits in relation to these services; and b) shall not accept or receive fees, commissions or any monetaryother benefits paid or provided by any third party or a person acting on behalf of a third party in relation to the provision of the service to clients.
Amendment 775 #
Proposal for a directive
Article 24 – paragraph 6 a (new)
Article 24 – paragraph 6 a (new)
6 a. An Investment firm which advises on or sells financial instruments to retail clients shall ensure it does not remunerate or assess the performance of its staff in a way that conflicts with its duty to act in the best interests of its clients. In particular it shall not make any arrangement by way of remuneration or otherwise that could benefit staff such that they are incentivised to recommend a particular financial instrument to a retail client when the firm could offer another financial instrument which would better meet that client's needs.