Making citizens invest in Europe’s capital markets is core to the Savings and Investment Union (SIU). However, EU-wide rules agreed in the ‘trilogue’ between the European Parliament (EP) and the Council on 18 December do not make the EU’s offer to the retail investor more attractive. Inducements or conflicts of interest in investment products are formally allowed in the draft text, subject to certain conditions. Moreover, the compromise is an example of complexity, going against the objective of simplification adopted in ECOFIN a few days before.

The lengthy discussions on the Retail Investment Strategy (RIS), which aim to further harmonise rules for product manufacturers and distributors, have…