The Czech Presidency of the Council tightened plans for an EU-wide ban on a controversial stock-trading practice despite opposition from the German government. Last Monday, governments were able to see the draft ban on "payment for order flow". The text states that investment firms "shall not receive fees, commissions or non-monetary benefits from third parties for referring client orders to third parties for execution". The Czech presidency of the Council is trying to reach an agreement among the 27 EU member states before the end of the year. Germany objects to the proposed ban, claiming that “banning payment for order flow in the EU would impair easy and low-cost access of retail investors to European capital markets”. The European Parliament still has to agree on its position before the trialogue negotiations can start.
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BETTER FINANCE's press release: Council of the EU is the Last Hurdle to Tackling Conflicts of Interests in Retail Investment Services