25 MAY, 2023
By RankiaPro Europe
Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People, and Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union.
The Commission has adopted a Retail Investment Package that places the consumers’ interests at the center of retail investing. The aim is to empower retail investors (i.e. “consumer” investors) to make investment decisions that are aligned with their needs and preferences, ensuring that they are treated fairly and duly protected. This will enhance retail investors’ trust and confidence to safely invest in their future and take full advantage of the EU’s Capital Markets Union.
One of the Commission’s three key objectives of the 2020 Capital Markets Union Action Plan was to make the EU an even safer place for citizens to invest in the long term. The package aims to achieve that goal and encourage participation in EU capital markets, which has traditionally been lower than in other jurisdictions, such as the United States – even though Europeans have very high savings rates. Boosting the Capital Markets Union is also an essential means to channel private funding into our economy and to fund the green and digital transitions.
The package includes ambitious and wide-ranging measures to:
Today’s package is wide-ranging in scope and touches on the entire investment journey of the consumer. It consists of an amending Directive, which revises the existing rules set out in the Markets in Financial Instruments Directive (MiFID II), the Insurance Distribution Directive (IDD), the Undertaking for Collective Investment in Transferable Securities (UCITS) Directive, the Alternative Investment Fund Managers Directive (AIFMD), and the taking-up and pursuit of the business of Insurance and Reinsurance Directive (Solvency II), as well as an amending Regulation, which revises the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation.
“European consumers are not yet getting the best deal when it comes to their investment choices. This matters if we want to stimulate private investment to fund the wider EU economy. This is why we are today raising the bar in terms of providing expert, unbiased and uncomplicated advice for investment products, so people get the best return on their money. Greater trust and confidence will encourage people to invest more in Europe’s capital markets; protecting consumers and treating them fairly. It will also help to keep Europe’s retail investment sector competitive. This is a key objective of the Capital Markets Union”.Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People.
“This is the most ambitious legislative proposal since the inception of EU financial regulation. It aims to ensure that the financial framework works in the interest of retail investors. This initiative looks at all stages of the investment process and across all sectors of the EU’s capital markets, and proposes a comprehensive framework to support EU citizens in their investment decisions. We want to encourage European citizens to make their money work for them by channelling part of their savings towards investing. Europeans are good savers but less likely to invest and this retail strategy aims to unlock the investment potential of savings. The best way to do this is to ensure they are better informed, get a fairer deal and are better able to meet their long-term financial objectives. This initiative delivers real benefits for retail investors, and puts their interests, their protection and their investment objectives centre-stage”.Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union.