Mon. Jul 22nd, 2024

1 October 2021

MiFID – Investor Protection

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, today publishes a call for evidence on a number of retail investor protection topics under MiFID II. These views will feed into ESMA’s technical advice to the European Commission (EC) on the development of its strategy for retail investment.

ESMA is requesting information from stakeholders on three topics:

  1. Disclosures: identification of any significant overlaps, gaps, redundancies and inconsistencies across investor protection legislation that might have a detrimental effect on investors. In particular, the call for evidence seeks input on how the rules work from a retail investor perspective – whether consumers can make informed choices, avoid information overload and overly complex information while ensuring investor protection;
  2. Digital disclosures:  an assessment of how regulatory disclosures and communications can work best for consumers in the digital age, and proposes options as to how existing rules might be adapted, such as allowing layered information; and
  3. Digital tools and channels: an assessment of both risks and opportunities with respect to retail investing stemming from both the increasing availability of digital tools and the increasing levels of direct investor participation via online trading platforms and robo advisors. In addition, the call for evidence also explores the topic of open finance i.e. how far value chains should be opened up by sharing specific investor data amongst investment firms and third party providers.

The call for evidence aims to gather views and qualitative/quantitative information stakeholders may have on the topics covered by the EC’s request for advice of 27 July 2021. The results of this call for evidence will be used to shape ESMA’s technical advice to assist the Commission in the development of its strategy for retail investments and to make appropriate adjustments to the legislative framework.

Next steps

The call for evidence is open until 2 January 2022 and seeks feedback from all interested stakeholders.  Due to its focus on investor protection issues, this paper is addressed to investors and consumer organisations, to investment firms and credit institutions performing investment services and activities and to manufacturers of PRIIPs, and to any relevant trade association.

ESMA will consider the information received when drafting its advice to the EC which will be delivered by 30 April 2022.


Source – ESMA:

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