Retail Investment Strategy: a regulatory initiative after MiFID 2 to enhance retail investments

Retail Investment Strategy

Background

In 2021, the European Commission observed that only a very small proportion of household investors’ savings are invested in securities, and a significant proportion of retail investors do not trust financial advice. This is due to a poor value proposition, the lack of value-for-money, and the difficulty of comparing of performance and costs. In many cases, practices such as retrospective commissions (e.g. trailer fee) between product manufacturers and distributors has been identified as problematic.

To remedy this, on 24 May 2023, the European Commission launched its “Retail Investment…