Ban on commission has yet to show positive results -- analysis

The EU directive MiFID II is intended to enhance transparency and protect investors, but the results of its implementation in Denmark have been unimpressive.

Photo: Jyllands-Posten

The new investor protection rules from EU, MiFID II, so far seem to have failed in their task in Denmark, according to Danish business media Finans. Based on calculations from analyst firm Morningstar, Finans reports that customers in Denmark are now paying more for their investment certificates post-tax than before the ban on commission payments took effect earlier this year.

“The first part of MiFID II seems to have had little effect in Denmark. Bottom line seems to state that most customers are paying more for their solutions post-tax. And I am given to understand that banks are mostly advising about the same funds as before – only now without commission,” senior analyst Nikolaj Holdt Mikkelsen from Morningstar tells Finans.

According to the media, investors’ expenses for mutual funds have only been reduced by DKK 500 million to a total of DKK 9.5 billion. One of the reasons for this is that banks have simply added or increased a so-called contract fee, which is subject to VAT for customers.

English Edit: Marie Honoré

More from AMWatch

Oil fund 2021 returns almost reach 15 percent

The three last years have been the best in the sovereign wealth fund's history, in NOK terms. CEO Nicolai Tangen and Deputy CEO Trond Grande don't expect the same good times going forward, however.

Further reading

Latest news


Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch