New Retail Investment Strategy for the EU

Harmonised rules, digital innovation and focus on suitability

The Commission’s roadmap on an EU Strategy for retail investors (published 20 April) sets out a plan for gathering feedback on potential amendments to MiFID, IDD, PRIIPS and UCITS planned for 2022. 

The purpose of these amendments will be to:

  • harmonise the relevant legal framework for better practicability. This entails amendments to key legal acts, namely: MiFID and IDD (regarding, for instance, investment and insurance advice, portfolio management), and PRIIPS and UCITS (product related requirements);
  • explore the role of intermediaries and investor suitability assessments. The Commission may propose to amend the rules on inducements and disclosure, as well as the existing legal framework for retail investors to receive fair advice and clear and comparable product information. It may also set up a pan-EU label for financial advisors;
  • assess the increasing role of digital innovation (social media, online brokerages, ease of access to retail investment);
  • as well to assess the general level of consumer understanding, with a view to increasing consumer financial competence and literacy going forward.

Silke Bernard Investment Funds Partner / Luxembourg
 Hermann Beythan Partner / Luxembourg