The package proposes the prohibition of payments from the issuer in non-advisory business. Payments for orders will be partially prohibited. The regulation mainly affects fund sales and certificates. However, the draft does not contain an originally planned general ban on "payment for order flow". In this respect, the rule that conflicts of interest must be managed remains in place.
Cost disclosure has also been expanded and standardized. Regulations on the disclosure of the price-performance ratio and on cost benchmarks have been added. A new reporting system for product costs to supervisory authorities will be introduced.
Further details can be found in the guest article by our partner Prof. Dr. Bernd Geier in the Börsen-Zeitung of June 16, 2023.