One of the Commission’s key objectives in the 2020 Capital Markets Union Action Plan was to make the EU a safer place for citizens to invest their savings, with the aim of channelling private funding into the economy and towards the green and digital transition. Some of the main obstacles to retail investors’ participation in capital markets were lack of access to relevant, comparable, and easily understandable information, as well as unduly marketing strategies and a lack of trustworthy financial advice available to retail investors.

To address these issues, the Commission initiated a proposal in 2023, empowering retail investors to make investment decisions that are aligned with their preferences and ensuring that they are duly protected and treated fairly. The Retail investment strategy introduces new requirements regarding disclosure rules, the role of financial advisors, marketing practices, and develops benchmarks against which the value of financial products can be assessed. This could significantly enhance retail investors’ trust and confidence to safely invest in their future and take full advantage of the EU’s capital markets union.

In 2024, the legislative package has entered interinstitutional negotiations between the European Parliament and the Council. Its application and entering into force, as well as the final text of the package, will depend on the negotiations and subsequent adoption by the co-legislators.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.