ShareSoc supports Better Finance’s proposals for the EU, which would bring the EU into line with UK practice.
On 30 May 2022 Better Finance (who represent individual investors across Europe) issued a Press Release: Last chance for Member States to support EU citizens as investors and finally ban Payment for Order Flow (PFOF)
PFOF is already banned by the FCA in the UK. See https://www.fca.org.uk/publication/finalised-guidance/fg12-13.pdf
There is a useful and authoritative paper on PFOF in the UK here: https://www.cfainstitute.org/en/advocacy/policy-positions/payment-for-order-flow-in-the-united-kingdom It demonstrates that retail execution improved after the ban was put in place in 2012 – this is strong evidence for support for Better Finance’s campaign.
This is an Official ShareSoc News item written by ShareSoc Director, Cliff Weight