Thank you for your enquiry.
UKIP is strongly opposed to any interference in the UK Financial Services market by the EU.
Yours sincerely,
Michael Harvey
General Secretary
UKIP Head Office Administration
Bridgeman House, 54 Broadwick Street, London W1F 7AH
Tel: 020 7434 4559 Fax: 020 7439 4659
E-mail: [email protected] Web: www.ukip.org
UKIP is strongly opposed to any interference in the UK Financial Services market by the EU.
Yours sincerely,
Michael Harvey
General Secretary
UKIP Head Office Administration
Bridgeman House, 54 Broadwick Street, London W1F 7AH
Tel: 020 7434 4559 Fax: 020 7439 4659
E-mail: [email protected] Web: www.ukip.org
I had a telephone call this afternoon from Mr. Aggarwal, the main compliance officer with IB UK, in reply to certain queries I presented to them in the light of the proposed line which may be taken by the EEC in respect of Direct Access.
He is talking to many colleagues about this throughout Europe, but whatever happens he has assured me that IB will do everything they can to protect Direct Access facilities for UK traders. He is optimistic that any ruling from Europe which may, on the face of it, appear hostile to intra-day traders will, in effect, be perhaps of more significance to the brokers themselves in term of ensuring 'due diligence.'
Much of their assessment of an individual's ability to make their own decisions and understand the risks etc. in trading are inherent already in the account application process. He was most positive when I said to him that our principal interest as traders was to secure the right to trade as informed individuals without having to seek third party advice on those trades, and that we looked to brokers like IB to assist in facilitating that choice as a means of earning a living.
He left me in no doubt that IB are very well informed of the events in the European parliament, are considering the matter in detail and will do all that they can, within the law, to protect UK traders' rights.
We shared common ground in our views of IFAs offering professional traders advice on trading. I think you can guess what the common ground was!
SeanC
He is talking to many colleagues about this throughout Europe, but whatever happens he has assured me that IB will do everything they can to protect Direct Access facilities for UK traders. He is optimistic that any ruling from Europe which may, on the face of it, appear hostile to intra-day traders will, in effect, be perhaps of more significance to the brokers themselves in term of ensuring 'due diligence.'
Much of their assessment of an individual's ability to make their own decisions and understand the risks etc. in trading are inherent already in the account application process. He was most positive when I said to him that our principal interest as traders was to secure the right to trade as informed individuals without having to seek third party advice on those trades, and that we looked to brokers like IB to assist in facilitating that choice as a means of earning a living.
He left me in no doubt that IB are very well informed of the events in the European parliament, are considering the matter in detail and will do all that they can, within the law, to protect UK traders' rights.
We shared common ground in our views of IFAs offering professional traders advice on trading. I think you can guess what the common ground was!
SeanC
Chaps,
Just to let you know I work for a firm of Execution Only brokers, in Compliance. I am actively involved with this issue as part of my day to day work. It is very complex and long winded but I will keep you informed as I get any further news on this.
Just to let you know I work for a firm of Execution Only brokers, in Compliance. I am actively involved with this issue as part of my day to day work. It is very complex and long winded but I will keep you informed as I get any further news on this.
Last edited:
Rognvald
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For information I am copying an email sent by my local MEP
Dear Mr Scott,
I am sorry to be replying to you with such delay, but it is only after certain parliamentary developments that I can usefully reply to you.
The European Parliament and Council have now both completed their first readings of the Financial Services Directive, to which your query related. The result is that Parliament's position differs from that of the Council in some important ways.
The report passed by the Parliament seeks to ensure that investors are able to continue to access low-cost investment services whilst ensuring investors remain adequately protected. The Parliament's amendments safeguard low-cost services such as on-line share trading and does not upset the UK Government's plans to offer a suite of simplified investment products as recommended in the Sandler Report. The amendments represent the need to balance investor choice and investor protection. Investors who do not want to receive investment advice will not be required to undergo an extensive fact-finding exercise which enables a bank or stockbroker to determine whether a particular service is suitable for them. By safeguarding such low-cost services, the Parliament's amendments contribute to narrowing the savings gap across the EU and encourage investors to save through a variety of means.
The report contains many compromises from a UK perspective but on the whole can be seen as a positive result. The Directive, if amended as Parliament suggests, will ensure that UK and EU financial markets remain clean, fair and orderly, but most of all, it ensures that investors benefit both from low-cost investment services and a high level of protection.
Whilst the Council text improved significantly during the negotiations, the Council's report did not reiterate the opinion of the Parliament in several key areas:
Article 18, which covers the treatment of execution-only business i.e. the sale of investment services or products without advice (and therefore without the need to verify whether the product or service is ‘suitable’ for the client).
Scope, which distinguishes between retail sector and wholesale sector.
Article 25, which covers ‘mandatory quote disclosure’ (which is sometimes referred to as pre trade transparency).
It will be critical for the Council and the European Parliament to work together closely during the European Parliament’s second reading for the Directive in order to find a suitable compromise for the critical areas, especially given the time constraints imposed by the European elections. Even though the Council text does differ from the Parliament, we remain very hopeful that we can work together to ensure a final Directive close to the views of the Parliament and indeed the outcome of the Plenary vote.
I hope that the information given has helped to answer your queries on this matter. I wish you well for the future.
If you do require any further information, however, I recommend that you contact my colleague Peter Skinner, who is the European Parliamentary Labour Party's full member on the Economic and Monetary Affairs Committee dealing with this issue ([email protected]; tel 00-32-2-284 5458). (I have only been a substitute member of EMAC, and have recently changed to the Legal Affairs Comittee.)
Yours sincerely,
Barbara O'Toole
Dr Barbara O'Toole, Labour MEP for the North East of England
European Parliament
ASP 13 G 261, Rue Wiertz
B-1047 Brussels
Tel +32-2-28 47362
Fax +32-2-28 49362
[email protected]
www.otoole-mep.com
Dear Mr Scott,
I am sorry to be replying to you with such delay, but it is only after certain parliamentary developments that I can usefully reply to you.
The European Parliament and Council have now both completed their first readings of the Financial Services Directive, to which your query related. The result is that Parliament's position differs from that of the Council in some important ways.
The report passed by the Parliament seeks to ensure that investors are able to continue to access low-cost investment services whilst ensuring investors remain adequately protected. The Parliament's amendments safeguard low-cost services such as on-line share trading and does not upset the UK Government's plans to offer a suite of simplified investment products as recommended in the Sandler Report. The amendments represent the need to balance investor choice and investor protection. Investors who do not want to receive investment advice will not be required to undergo an extensive fact-finding exercise which enables a bank or stockbroker to determine whether a particular service is suitable for them. By safeguarding such low-cost services, the Parliament's amendments contribute to narrowing the savings gap across the EU and encourage investors to save through a variety of means.
The report contains many compromises from a UK perspective but on the whole can be seen as a positive result. The Directive, if amended as Parliament suggests, will ensure that UK and EU financial markets remain clean, fair and orderly, but most of all, it ensures that investors benefit both from low-cost investment services and a high level of protection.
Whilst the Council text improved significantly during the negotiations, the Council's report did not reiterate the opinion of the Parliament in several key areas:
Article 18, which covers the treatment of execution-only business i.e. the sale of investment services or products without advice (and therefore without the need to verify whether the product or service is ‘suitable’ for the client).
Scope, which distinguishes between retail sector and wholesale sector.
Article 25, which covers ‘mandatory quote disclosure’ (which is sometimes referred to as pre trade transparency).
It will be critical for the Council and the European Parliament to work together closely during the European Parliament’s second reading for the Directive in order to find a suitable compromise for the critical areas, especially given the time constraints imposed by the European elections. Even though the Council text does differ from the Parliament, we remain very hopeful that we can work together to ensure a final Directive close to the views of the Parliament and indeed the outcome of the Plenary vote.
I hope that the information given has helped to answer your queries on this matter. I wish you well for the future.
If you do require any further information, however, I recommend that you contact my colleague Peter Skinner, who is the European Parliamentary Labour Party's full member on the Economic and Monetary Affairs Committee dealing with this issue ([email protected]; tel 00-32-2-284 5458). (I have only been a substitute member of EMAC, and have recently changed to the Legal Affairs Comittee.)
Yours sincerely,
Barbara O'Toole
Dr Barbara O'Toole, Labour MEP for the North East of England
European Parliament
ASP 13 G 261, Rue Wiertz
B-1047 Brussels
Tel +32-2-28 47362
Fax +32-2-28 49362
[email protected]
www.otoole-mep.com
