Making markets work better for retail investors is one of the key objectives of the Capital markets union action plan. A study carried out by Deloitte Luxembourg for the European Commission shows the difficulties that consumers in the EU face when trying to buy the most suitable investment fund, life insurance or private pension:

  • retail investors have access to a wide range of products through various distribution channels but face huge challenges in collecting information, comparing data or getting independent advice on the different products on offer
  • the costs for similar product categories vary strongly across EU countries
  • in most EU countries, investors seek advice mainly from non-independent advisors (i.e. banks and insurers) who tend to propose between two and three in-house products
  • the potential for new distribution models based on FinTech is promising but needs still to be monitored carefully.

Recent EU legislation (in particular the MiFID II, PRIIPs and Insurance distribution directives) should improve the functioning of the markets for retail investors.


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