EFAMA: EC CfE ON RETAIL INVESTMENT – NEW PACKAGE OF MEASURES TO INCREASE CONSUMER PARTICIPATION IN CAPITAL MARKETS
03 June 2022
EFAMA wholeheartedly supports a retail investment strategy that gives EU citizens the necessary tools and the confidence to put their savings to work by investing in capital markets.
We believe that the collection of rules
currently governing retail investor participation is either misaligned
or tends to focus too narrowly on investor protection and on the risks
associated with investing. To offset the phenomena of European consumers
losing money by keeping their money in bank accounts, it is critical
to focus on the benefits of investing.
Other recommendations that, in our view, should be included in a successful retail investment plan include:
- Easy access to financial advice for retail investors. In this regard, given that that each model of remuneration for advice (fee-based and commission-based) may be the best option for different retail investors, it seems only reasonable that the ideal compensation structure for investors should allow both systems to co-exist.
- Early financial literacy programs for EU citizens, with the European Commission playing a coordinating role across Member States.
- Aligned financial disclosures across various regimes,
such as MiFID, IDD and PRIIPs rules. In particular, we are greatly
supportive about the resolution of inconsistencies on cost, risk and
performance information.
- A PRIIP KID that focuses on relevant and meaningful information or each type of investment product.
Finally, our members consider it vital for the Commission to invest more time and resources to conducting thorough consumer testing of policy options with
retail investors before submitting legislative proposals to the EU
co-legislators. This should ensure that the proposed changes create
tangible incentives and clear benefits for retail investors, the
financial industry and the EU as a whole.
EFAMA
© EFAMA - European Fund and Asset Management Association
