In 2021, the total income generated by securities lending operations globally stood at €7.8 billion, up by 21% compared to 2020. The majority of operations and lenders are outside the EU, and around 88% of securities on loan were sovereign bonds and equities. In the EU, lenders cannot derive any profit from securities lending. All
BETTER FINANCE published a report in support of its response to the EC Consultation on the EU Strategy for Retail Investors, illustrating the current state of affairs, detailing how to attract and retain the participation of EU households in capital markets, and issuing policy recommendations. The EU needs a Capital Markets Union “That Works for
Savers and individual investors are one of the most vulnerable groups of consumers due to the nature of financial markets, the limited financial literacy of households and the growing complexity of investment services and products. When breaches of consumer rights occur in this sector, losses are high and usually difficult to compensate. BETTER FINANCE’s research
Individual, non-professional investors have an increased appetite for investing in capital markets following the global health pandemic. Evidence in several jurisdictions shows that many new, young, and tech-savvy savers started to invest without professional assistance through what is called execution-only services under EU law . The European Supervisory Authorities (ESMA, EIOPA, EBA) have a legal
The objective of this project is to understand the perceived experience of market participants with special purpose acquisition companies (SPACs), including investment professionals as well as the recipients of financial services and products (i.e., retail investors). The study presents professional and retail investors’ views on the main issues that pertain to SPAC vehicles: transparency and
BETTER FINANCE screened available evidence (literature, surveys, experiments, and statistical data) comparing the impact of allowing the receipt of “inducements” by distributors or brokers of “retail” investment services and products, versus banning it. Two jurisdictions in Europe already banned the receipt of commissions for the distribution of retail investment products: the United Kingdom, since 2012,
— An updated version of this study (AGM Season 2022) can be found here — The general meeting is the cornerstone of shareholder democracy. It is not only where voting on major company decisions takes place, but also the only place where private shareholders can engage with board members and their fellow shareholders. As shown
BETTER FINANCE continued its research series into Robo advice with this sixth annual edition, mapping start-up platforms that provide Robo-advisory and investing services, and analysing their user-friendliness, transparency, costs, portfolio composition, the suitability of their recommendations, and sustainability (through mystery shopping). This year the research team selected 18 platforms providing investment advice in 11 countries
BETTER FINANCE presents its Evidence Paper on Banning Inducements in retail investment services. BETTER FINANCE screened available evidence (literature, surveys, experiments, and data) on the effects of allowing vs banning the receipt of inducements by distributors of retail investment services and products. Inducements designate remunerations, such as commissions or kickbacks, paid by third-party financial firms to
In June 2021, the German Association of Insured (BdV), together with the analyst Carsten Zielke and the European consumer organisation BETTER FINANCE, presented the results of their analysis of the current SFCR (Solvency and Financial Condition Report) of selected European life-insurers. Following up on this, BETTER FINANCE and BdV discussed their methodological approach, the interpretation