EU launches public consultation on new retail investor protection measures

On the 05/14/21 at 7:49AM


Clément Solal

The European Commission (EC) has launched a public consultation on its new strategy to ensure that retail investors benefit from capital markets.

On Tuesday, 11 May, the European Commission (EC) launched a public review on the presentation of a new strategy to “guarantee that retail investors can benefit fully from the capital markets”. The strategy is scheduled for roll-out in the first half of 2022. The public review is meant in particular for consumer- and retail investor-protection associations, as well as various stakeholders in the financial sector. It will remain open for 12 weeks, until 12 August 2021.

The strategy “will cover a series of initiatives designed to achieve the level of protection, confidence and assurance needed by retail investors”, the EC says, regretting that “currently the level of retail investor participation in EU financial markets is low by international standards”.

The strategy could include an evaluation of rules for incentives and disclosures. The EC is also thinking of requiring advisors to obtain “a certificate proving their level of knowledge and qualifications”.

A revision in investor categorisation may also be proposed, particularly the status of retail investor as opposed to professional investor status.

Sign in