We’ve previously written
about how hard it is to compare the different fund prices in Norway:
One of the changes MiFID II has brought is more transparent pricing of how much the platforms get in kickbacks from the funds. Transparent pricing should be good news for the users, but the reality is different: […]
Previously, a fund cost the same across all the different distributors. However, after MiFID II, the result is that you need a spreadsheet to find out where it is cheapest for you to invest.
In June, the Financial Authority in Norway sent a proposal to the Ministry of Finance to prohibit return commissions
when selling savings products to non-professional customers. The Consumer Council in Norway has argued for this change since 2019
, stating that the current system of retrocession fees is the most significant source of conflicts of interest in the funds’ industry. The Netherlands and UK prohibited retrocession fees in 2012 and 2014, respectively. These prohibitions have resulted in the emergence of self-service funds, supermarkets, Robo-advisers, and lower prices. It will be interesting to see how this plays out for other kickback solutions for resellers of loans.