Europe proposes ban on execution-only investment

dunstonh

http://www.citywire.co.uk/new-model-adviser/europe-proposes-ban-on-execution-only-investment/a461073?ref=new-model-adviser-latest-news-list

I don't think for one minute it will happen or that there is a need for it to happen. Many already feel that there is too much consumer protection and nanny state style protection with investing. This would just be totally daft and unfair on those that can DIY.

Reaper

I think we need consumer protection from daft regulations. Fortunately I see no chance of this proposal going through.

Rollinghome

And they were going to ban straight (or bent) bananas according to the Sun or was it the Mail.

What they've actually said is here on page 57 etc. for anyone who can be bothered to read it.

jamesd

Reading pages 54 and 55 I have the impression that the proposal to eliminate execution only is intended to make the previous option to adjust what can be done execution only seem more desirable. A negotiating tactic.

I'm not quite sure how they plan to prevent consumers from execution only activities unless they plan to make it a crime for the consumer to do so. There are stock markets in most countries and no shortage of international companies willing to accept dealing instructions. Easy to drive consumers to providers not covered by MiFID at all but that hardly seems productive.

Loughton_Monkey

Seems to add weight to my argument (previously promulgated in several other threads) for some sort of 'License to Buy'. Basically some sort of declaration/registration to say "I am educated, know what I am doing, and accept responsibility for investment decisions..."

jimjames

Loughton_Monkey wrote: »

Seems to add weight to my argument (previously promulgated in several other threads) for some sort of 'License to Buy'. Basically some sort of declaration/registration to say "I am educated, know what I am doing, and accept responsibility for investment decisions..."

That would certainly make sense - maybe with some tests too!

StevieJ

jimjames wrote: »

That would certainly make sense - maybe with some tests too!

I think they should start with credit cards first

Loughton_Monkey

StevieJ wrote: »

I think they should start with credit cards first

Or maybe some more basic things, like:

1. You cannot 'cash in' your pension when you are 30 and hard up.
2. A 5% regular saver gives you 5% on the amount of money in the account and not the whole future balance for a year.
3. If you go overdrawn, you will be charged. 'I needed the money for my sick mother' is not an excuse that will work.
4. Your mate down the pub is wrong when he says getting your own SIPP is better ["innit?"]than contributing 6% into your company scheme to get another 6% from your employer.

jimjames

When some questions ask how much interest 1% will give on £100 there is a definite need for better financial education so I'm in favour of anything that could improve it.

King_Weasel

Rollinghome wrote: »

And they were going to ban straight (or bent) bananas according to the Sun or was it the Mail.

I believe it was bent bananas. The Blair government were willing to compromise and to continue allowing bent bananas so long as they pointed to the left. But commentators questioned the government's credibility on this and doubted whether they would ever permit anything left-leaning in practice.

opinions4u

jimjames wrote: »

When some questions ask how much interest 1% will give on £100 there is a definite need for better financial education so I'm in favour of anything that could improve it.

While there are good reasons to be critical of state education, I'm pretty sure they do still teach basic stuff like this.

As for the rest of it, the only good thing the EU has ever done is insist that electrical appliances have plugs fitted to them. The rest of it is a load of money wasting cobblers. Labour were right in 1983. We should pull out.