On 21 May 2025, the European Securities and Markets Authority (ESMA) issued a call for evidence on the retail investor journey.

Purpose

The purpose of the call for evidence is to gather input on key aspects of the investor journey, particularly the MiFID II regulatory requirements that impact retail investors when engaging in capital markets. ESMA is especially interested in understanding whether certain disclosure, suitability and appropriateness requirements may create unintended obstacles for retail investors. ESMA adds that while investor protection measures are essential ‘it is important to assess whether they remain effective and proportionate, especially in a digitalised investment environment’.

After reviewing non-regulatory barriers to retail participation in capital markets the call for evidence explores specific regulatory requirements that directly impact retail investors including regulatory disclosures, suitability assessment and appropriateness assessment. It also examines specific trends like why younger investors are more drawn to speculative and volatile assets over traditional investment products.

Next steps

The deadline for comments on the call for evidence is 21 July 2025.

Based on the responses ESMA will assess in Q3 2025 whether specific regulatory adjustments or clarifications are needed to enhance investor protection and retail engagement in financial markets.