The condition being that RDR will have to be compatible with the MiFID II directive, which proposes banning inducements for independent advisors with no mention to the non-independent advisors.
This has raised concern amongst the trade bodies as well as the Treasury who feel that the directive would threaten the RDR directive of banning all commission payments from providers to advisors beginning 2013.
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The Financial Times has reported that EC has confirmed that Mifid II would not affect the FSA’s commission ban.
"While requirements under the new Mifid will have to be implemented [on a] national level, member stares could be able to cater for additional requirements," it said.
"The approach adopted by the UK does not seem incompatible with the revised Mifid rules."
With countries such as France expressing their unhappiness with the rules others including the UK, Denmark and the Netherlands have gone ahead and presented their own rules on banning commission.
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By GlobalDataMifid II negotiations will now move to the European Parliament.
