The EU Commission, with the recent publication of the Retail Investment Strategypackage, has responded to the request of FECIF and the entire industry by abandoning the idea of a full ban on commissions.

The strategy has shifted its focus towards protecting savers and only imposes a ban on inducements for execution-only services.

"The current model has been recognized as an excellence one, thanks to its characteristic of prioritising the concept of solutions, within a shared strategy, over that of products," said FECIF chairperson Vania Franceschelli.

Franceschelli continued: "European consumers need advice that guarantees transparency and clarity. But they also need access to that advice. The present structure of the industry enables accessibility for all citizens.

"A general ban on commissions would destabilise the current distribution channels of savings products, hamper the provision of investment advice where it is most needed, and potentially bring the European Union capital market to a halt, by limiting consumers' choice."

FECIF believes that this highlights the value dimension of financial advice, which can now evolve by improving the current distribution model towards increasing transparency of the offered solutions, for the protection of retail investors.