BETTER FINANCE welcomes ESMA’s initiative to map the “retail investor journey” as a step toward an investor-centric approach. Our response highlights that low retail participation is less about investor “reluctance” and more about structural failures: biased advice models, inconsistent oversight, poor value for money, and tax frictions. Current frameworks are fragmented, opaque, and product-siloed, limiting comparability and trust.
We call for a level regulatory playing field across all product categories, reinforced duty of care, impartial advice, and meaningful, harmonised disclosures on costs, risks, and service models. Information must be layered, digital-friendly, and focused on what matters - real net returns, total costs, and liquidity. Simplifying and standardising tax procedures, improving portability, and ensuring access to simple, high-quality products are essential to rebuilding trust and engagement in EU capital markets.
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