Renew Europe welcomes the adoption of the Retail Investment Strategy Package by the Committee of Economic and Monetary Affairs (ECON). This initiative aims to empower retail investors by providing clearer information and better financial advice, while also equipping supervisors with enhanced tools for efficient action. By enhancing trust, confidence, and protection for retail investors, this package seeks to enable them to participate more actively in markets and fully utilize the potential of the EU's Capital Markets Union. MEP Stéphanie YON-COURTIN, Renew Europe's Coordinator on Economic and Monetary Affairs Committee (ECON) and rapporteur on the Retail Investment Strategy Package, sees this as a significant advancement in completing the Capital Markets Union, especially in addressing the investment gap to finance EU priorities. She regrets the obstructive stance of left-wing colleagues who walked away from negotiations, jeopardizing the adoption of crucial legislation.

Under the leadership of Renew Europe, the final compromise strengthens requirements for value for money throughout the value chain, shifting more responsibility to company management for compliance with product governance rules. National competent authorities will now have the ability to utilize benchmarks as a supervisory tool, allowing them to assess the market using a risk-based approach and implement corrective measures when necessary.

Furthermore, efforts were made to ensure a more protective framework for consumers. Retail investors must now receive tailored services based on their specific needs and objectives, while conflicts of interest regarding financial advisors' inducements should be addressed through increased transparency. This strikes a balance between benefiting citizens and maintaining competitiveness for companies, particularly SMEs.

The adopted legislation also tackles new challenges presented by online actors, such as "finfluencers," who have emerged as "financial advisors 2.0." Measures are in place to prevent misleading marketing communications and mitigate harmful decisions stemming from customer ignorance. Additionally, the compromise expands financial literacy initiatives for consumers by establishing a EU platform on financial education. This platform will include representatives from each Member State, European supervisory authorities, the ECB, EIB, consumer organizations, and European financial industry federations.