European Commission’s Retail Investment Strategy includes positive elements, however the impact of some initiatives remains unclear

EFAMA comments on the EC’s Retail Investment Strategy (Please see EventID 21279 and EventID 21284 in this context) and mentions it having several positive elements the fund industry has long advocated for.
These elements include digital-by-default disclosures, the preservation of fee- and commission-based distribution models, and comparable rules for all investment products. These measures aim to provide investors with access to financial advice, improve the usability of disclosures, and increase clarity.
However, the impact of some initiatives in the strategy remains uncertain. It is important to enforce existing investor protection rules and avoid overwhelming investors with information. Complex disclosures and compliance requirements should not be increased without significant benefits. Additionally, the strategy’s potential value assessments should consider factors beyond cost, such as sustainability goals or income generation.
Tanguy van de Werve, the Director General at EFAMA, emphasized the need for a Retail Investment Strategy that promotes a positive investment culture and enhances the investor experience. The financial security of EU citizens and the value of their savings are at stake. Each policy initiative should be well-founded, with a clear understanding of its impact on end-investors and the competitiveness of EU capital markets. EFAMA remains committed to supporting the European Commission and co-legislators in this important endeavor.