Date: 28th February 2022

The European Union has two initiatives whose main objectives are to "ensure bias-free advice": the "Capital Markets Union" Action Plan and the EU Strategy for Retail Investors.

The dominant distribution model in Europe is commission-based (suppliers pay sales commissions to retail distributors, often surprisingly labelled as "investment advisors"), so it is the conflicts of interest in the distribution of retail investment products that are of most interest here. EU legal jargon calls those "inducements", a term most EU savers do not understand. The former chair of EIOPA used to call them "kickbacks", which is far more understandable for retail investors.