Asset Managers · Regulation · Investment news

‘Value for money’ replaces full kickback ban in EU retail plan

People crossing street: Jacek Dylag/Unsplash
Fund firms face the prospect of EU rules setting standards of “value for money” for their investment products under the Retail Investment Strategy due to be unveiled on 24 May. This could include disincentives, for example, to charging active management fees for an investment that underperforms an index fund. For all the discussion of a ban on inducements for investment advice, the commission has decided to propose a more limited inducement ban on execution-only investments. 

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