FSA clarifies Mifid rules on handling client money

Intermediaries holding commission for rebating or offsetting against fees will remain outside Mifid ...

Intermediaries holding commission for rebating or offsetting against fees will remain outside Mifid rules on handling client money, the FSA has confirmed. Focusing on the definition of client money, the Europe-wide Mifid regulations will require firms that hold client assets to segregate this from their own assets. Fay Goddard, deputy director general of Aifa, said many advisers had expressed concerns that fee structures involving retained commission would come under Mifid and have to provide the same levels of protection.