The draft suggests: "When the investment firm informs the client that investment advice is provided on an independent basis, the firm shall assess a sufficiently large number of financial instruments available on the market."

The firms will have to clarify whether they are providing independent or restricted advice and will also have to provide the clients with an ongoing assessment of the suitability of products offered to them.

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It also says that the firm "shall not accept or receive fees, commissions or any monetary benefits paid or provided by any third party or a person acting on behalf of a third party in relation to the provision of the service to clients."

The draft is just the first stage of the legislation. It will be sent to the governments of the 27 member states for further negotiation and will become a rule only when passed by the European Commission and adopted by the European Parliament.

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