Abstract
Conflict of interests between investment firms and its clients is an undesirable phenomenon. Investment firms tend to offer services to its clients that are in the best interest of these investment firms, rather than in the best interest of its clients.
This article describes the development of inducements regime, starting with the Council Directive 93/22/ECC, through MiFID up to MiFID II and its implementing directives. It focuses on the analysis of the scope and depth of regulation of inducements in the mentioned directives and their comparison.
A special focus is devoted to the provision of an additional or higher level service. There is an example at the end of this article demonstrating the strengthening of the EU regulation of inducements in the course of time.