On 11 May 2021, the European Commission issued a public consultation on the upcoming retail investment strategy, which is planned for adoption in early 2022, as announced in last year’s Capital Markets Union Action Plan.
In line with the Commission’s stated objective of “an economy that works for people”, the Commission is seeking to ensure that a legal framework for retail investment is suitably adapted to the profile and needs of consumers, helps ensure improved market outcomes and enhances their participation in the capital markets.
The Commission is looking to understand how the current framework for retail investments can be improved and is seeking views on different aspects, including:
- The limited comparability of similar investment products that are regulated by different legislation and are hence subject to different disclosure requirements, which prevents individual investors from making informed investment choices.
- How to ensure access to fair advice in light of current inducement practices.
- How to address the fact that many citizens lack sufficient financial literacy to make good decisions about personal finances.
- The impact of increased digitalisation of financial services.
- Sustainable investing.
The deadline for comments on the public consultation is 3 August 2021.