Clifford Chance
Retail distribution review in the Netherlands: a gradual introduction of a ban on third party inducement fees
8 February 2012
Financial services providers operating in the Netherlands including but not limited to investment firms licensed in accordance with the Markets in Financial Instruments Directive (2004/39/EC, the "MiFID"), should take note of recent developments concerning the regulation of inducements, ie fees, commissions or promotional gifts. The inducement rules are intended to prevent inducements being paid or provided to financial advisors and intermediaries at the detriment of the interest of the client.
A distinction can be made between inducement rules applicable to:
• banks and investment firms which are subject to the MiFID
• non-MiFID financial services providers.
In this briefing we will elaborate on the current rules and the proposed rules for both MiFID firms and financial services providers.
