The document serves as BETTER FINANCE response to selected questions of ESMA’s discussion paper on the implications of digitalisation for investor protection under MiFID II. The document “Discussion Paper on MiFID II investor protection topics linked to digitalisation” provided by the European Securities and Markets Authority (ESMA) focuses on various aspects of digitalisation in the
ESMA Consultation Paper Guidelines on certain aspects of the MiFID II suitability requirements. BETTER FINANCE highlights that the new concepts introduced by the recent regulatory amendments may be difficult to understand by individual, non-professional investors, creating the risk for them to avoid making a decision or making a wrong decision. In this sense, we suggest
More than a year after the entry into force of the revised Markets in Financial Instruments Directive (MiFID II) and of the Regulation on Key Information Document for Packaged Retail and Insurance-based Investment Products (PRIIPs KID), BETTER FINANCE sought the views and experience of its member associations and their individual members on the effectiveness of
BETTER FINANCE welcomes the initiative of ESMA to clarify certain aspects related to the application of the MiFID II provisions on the appropriateness test and requirements for execution-only services. In addition, BETTER FINANCE commends ESMA on adapting the Guidelines on suitability assessment for the appropriateness test as the two procedures are, to a certain extent,
We welcome the EC’s initiative to alleviate some regulatory requirements enabling EU capital markets’ potential to boost recovery from the COVID-19 induced economic downturn. However, we wish to warn about the long-term detrimental effects that several provisions and amendments will have on “retail” investor protection if done in “haste” and without proper scrutiny and attention
Summary: General comment The review of the MiFID II framework is timely and should be coordinated with the other ongoing actions and policy areas, i.e. PRIIPs and the work done in the Forum on the Future of the Capital Markets Union. In addition, to ensure a level playing field, the European Commission should also adopt
BETTER FINANCE welcomes this timely assessment and evidence gathering on the application of the new MiFID II rules on disclosure for inducements and costs. However, it is very unfortunate that, in a field that is crucial to investor protection and designed to enhance consumer experience and trust in financial services, the majority of questions are
BETTER FINANCE continues to express deep concern about the unwanted “side-effects” of the MiFID 2 regulatory framework on “lit” equity trading in the EU. Below is the summary response to the ESMA Public Consultation on the review of the MiFID 2 and MiFIR transparency regime for equity and equity-like instruments, the double volume cap mechanism
The European Commission is probing the effectiveness of the product governance rules introduced to the industry in 2018 in its latest consultation on the Markets in Financial Instruments Directive (Mifid). […] In a 94-page consultation document, published yesterday (February 26), the commission stated there was some debate over the efficiency of product requirements and asked participants
BETTER FINANCE is happy to announce that The European Banking Authority’s Banking Stakeholder Group (BSG) selected one of its previous vice-chairs, Alin Iacob, to join the BSG again. Alin Iacob is the Chairman of the Association of Romanian Financial Services Users (AURSF). AURSF has been a member of BETTER FINANCE, the European Federation of Investors
Brussels, 20 July 2020 – The new composition of the European Supervisory Authorities’ (ESAs) “Stakeholder Groups” is a step backwards with regard to a balanced representation between industry and consumers in EU financial rulemaking. This is the result of the recent ESAs reform, which reduced the quotas for consumers and academics in favour of financial
The asset management industry frequently complains about the fact that they face more and more regulation, that they are under pressure from passive managers and clients and that technological progress increases competition. One would start to wonder if there are any perks to the job at all. What they deliberately fail to mention are the
Brexit has begun to create a shift of financial regulation within Europe. With the resignation of Britain’s EU Commissioner in charge of financial services, Jonathan Hill, Britain is seeing its influence within Europe dissolve. During an interview with the FT, Lord Hill discussed the shift of power that will affect British financial institutions and the
The Sustainable Finance Disclosures Regulation (SFDR) started applying in March 2021 and requires financial market participants and financial advisers to disclose at entity and product levels how they integrate sustainability risks and principal adverse impacts in their processes at both entity and product levels. It also introduces additional product disclosures for sustainable financial products making
BETTER FINANCE members UK Shareholders’ Association and ShareSoc (UK Individual Shareholders Society) published a letter expressing disappointment in the news that the UK government is abandoning some of its reforms to accounting standards: It is difficult to overstate the disappointment of investors, and other users of corporate information, at the news that the UK government
Factors influencing the number of new listings/IPOs in Sweden Paper presented to the Policy Committee of ecoDa, January 2022 According to the EU Commission’s report “Primary and secondary equity markets in the EU” Sweden has had a unique development of the number of new listings/IPOs between 2010 and 2018 compared to all other member
BETTER FINANCE welcomes the European Commission’s WHT FASTER Proposal that has to potential to bring procedural progress in addressing longstanding obstacles to tax recovery for investors dealing with their cross-border investment income. We applaud an EU-wide framework to streamline withholding tax (WHT) refund modalities under common reporting, and support its digitalisation addressing the current hurdle
‘The Value of Financial Advice’ is an upcoming conference organized by Nordic Finance and the Good Society in Frederiksberg, Denmark. A number of esteemed keynote speakers from academia and the financial services sector will share their insights on the role of financial advice for financial decision-making. Register here.
The European Commission has issued the Delegated Act on the European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD) to enhance transparency in sustainability reporting by companies. However, it faces criticism for weakening key aspects of the initial proposal by the European Financial Reporting Advisory Group (EFRAG) and neglecting vital concerns. Critics
The Retail Investment Strategy (RIS) compromise currently on the table for a European Parliament vote blatantly disregards the interests of retail investors and the establishment of a competitive Capital Markets Union (CMU). Should Ms Yon-Courtin’s proposed compromise be approved by the ECON committee on 20th March and subsequently put to a plenary vote one month
BETTER FINANCE endorses the FSUG’s call for improved ‘Value for Money’ in retail investments. The focus is on enhancing the effectiveness of packaged retail and insurance-based investment products (PRIIPs) to contribute significantly to investors’ financial well-being. The FSUG emphasises the responsibility of product manufacturers to design products that boost investors’ financial wealth and urges supervisors
⬇️ Read or download BETTER FINANCE’s Individual Investors’ Key Priorities for 2024-2029 below. ⬇️ Let’s harness the Capital Markets Union’s (CMU) potential to benefit our citizens as financial consumers, retail investors and pension savers, as well as our planet, the economy, and for future generations. This will ensure Europe’s prosperity and security in a rapidly
DG FISMA will be organising a roundtable on January 25th, 2024 at 10:00, where Aleksandra Maczynska, Acting Managing Director at BETTER FINANCE will address the panel on ‘Opportunities from a shorter settlement cycle in the EU’.