Legislative steps aimed to protect millions of retail investors face danger of failing during forthcoming negotiations in Brussels, according to an EU consumer interest group.
The subject in balance concerns proposed rules to enforce clear descriptions of financial products being sold. This would be done with rules to introduce a Key Information Document (KID). The KID would provide the potential buyers with details of what they are buying,including full disclosures of commission.
Crucially, it would have to cover the essential data in language understandable by the average citizen. It should be concise, that is, probably to cover no more than two pages.
Despite strong support from all European consumer interest groups, the matter remains in the balance within the EU legislative powers. A decision making meeting is possible before the end of March, but is not certain even to take place before the European Parliamentary elections in May, according to BETTER FINANCE (EuroFinUse, the European Federation of Financial Services Users).
The Federation, which represents more than four million private investors across Europe, notes that, even so, that outcome is by no means certain.
Managing director at BETTER FINANCE, Guillaume Prache makes the point that the danger now is an annihilation of seven years of work and efforts to harmonize the protection of retail investors and pension savers under the KID package.
Please read BETTER FINANCE press release here.