EFAMA is a long-standing advocate of a retail investment strategy that gives EU citizens the necessary tools and the confidence to put their savings to work by investing in capital markets - one of the objectives of the CMU project.
We support harmonised rules governing retail investor participation, as well as a greater emphasis on the benefits of investing, as they would go a long way towards offsetting the phenomenon of European households losing their hard-earned wealth to inflation. We also consider investment advice and its availability essential to increasing retail participation in European capital markets, along with improved financial disclosures and increased financial literacy.
EFAMA welcomes ESMA’s Call for Evidence to assess the rapidly shifting investment landscape and ensure that the current regulatory environment, its underlying market structure, and the existing industry practices safeguard retail investors’ interests. It is our strong belief that improving retail investor empowerment in Europe is key to further develop and deepen its capital markets.
New report calls for action to be taken to revive the Capital Markets Union project
This report analyses the progress made in recent years by European households in allocating more of their financial wealth to capital market instruments (pension plans, life insurance, investment funds, debt securities and listed shares) and less in cash and bank deposits. It also includes policy recommendations on improving retail participation in capital markets, including for the Retail Investment Strategy currently under discussion.
Some key findings include:
EFAMA is pleased to release a leaflet entitled “Retail Investment Strategy: positive elements for European investors and ones that should be reconsidered.” This document outlines the needs of EU investors, how the European Commission’s proposal is expected to help them, and what still needs to be adjusted.
At the Roundtable on the distribution of retail investment products on 18 July 2023, the European Commissioner for Financial Stability, Financial Services and Capital Markets Union, Mairead McGuinness, invited the European Banking Federation (EBF), the European Fund and Asset Management Association (EFAMA) and Insurance Europe to advance an industry-driven process to explore common solutions aimed at increasing retail participation in EU capital markets.
This report analyses the progress made in recent years by European households in allocating more of their financial wealth to capital market instruments (pension plans, life insurance, investment funds, debt securities and listed shares) and less in cash and bank deposits. It also includes policy recommendations on improving retail participation in capital markets, including for the Retail Investment Strategy currently under discussion.
Some key findings include:
The European Commission’s proposal for a Retail Investment Strategy is currently being debated within the European Parliament and Council. As a contribution to this discussion, EFAMA have produced a short leaflet which summarises the needs of EU retail investors, what the proposal gets right, and alternative proposals to consider, with a special focus on disclosures and advice.
