For a ban on commissions in financial advice

BEUC NEWS - 16.9.2019

The decisions we take in personal finance –planning for retirement or choosing to invest in funds – can be among the most important in our lives. That’s why we need to make sure the advice we solicit, to take good decisions, works in our interest.


But too often, financial advisers recommend products which suit themselves more than the consumer. This system, where advisers receive a commission from a financial firm if they sell a particular product, has too frequently led to .

In our new policy paper, we argue this system needs to be changed. We want to ban commissions for retail investment products and complex financial products at EU level. Our paper looks at the Netherlands and the United Kingdom where such bans are already in place, with positive effects for consumers and the market. The evidence shows that these bans have encouraged the distribution of more cost-effective investment products to consumers.

We also address some of the concerns that an ‘advice gap’ may have emerged in countries which have implemented bans. Finally, we map efforts to date by financial regulators worldwide to ban commissions.

Read our new and .

To view our updated webmap of the major mis-selling scandals to have affected consumers across Europe in the last twenty years, click .