On 3 April 2024, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) published a report in relation to a previously agreed text to amend several directives, with an overarching aim of reinforcing investor protection rules.

The report relates to a proposed directive which would amend the following Directives as regards European Union investor protection rules:

  • 2009/65/EC (the Undertakings for Collective Investments in Transferable Securities IV).
  • 2009/138/EC (the Solvency II Directive).
  • 2014/65/EC (the Markets in Financial Instruments Directive).
  • (EU) 2016/97 (the Insurance Distribution Directive).

The report contains a draft European Parliament legislative resolution, which sets out ECON’s proposed amendments to the draft text of the proposed legislation. ECON voted to adopt the text in March 2024. The amended text explains that its intention is to introduce rules that better frame the current advice environment by ensuring that financial intermediaries provide more transparent, understandable and tailored advice to clients and consumers. This aims to ensure that clients and consumers are being offered products suitable to their needs and that they better understand the advice they receive.

For more information on the proposed changes, see our previous blog here.