BETTER FINANCE, the European Federation of Investors and Financial Services Users, welcomes the European Commission’s new initiatives to advance the Savings and Investments Union (SIU), notably the EU Financial Literacy Strategy and the blueprint for Savings and Investment Accounts (SIAs).
Financial literacy and access to simple, cost-effective investment products are two sides of the same coin. Citizens need both the knowledge to plan their finances and the tools to make their savings work for them. With one of the highest savings rates in the world, Europeans often fail to get the most out of their money, a gap that SIAs, alongside a stronger focus on financial education, can help to close.
BETTER FINANCE has advocated for over a decade for an EU Blueprint for the SIA, as SIAs can play a crucial role in empowering citizens to build long-term savings and participate more directly in capital markets.
Since nearly 10 years now, BETTER FINANCE has actively promoted the idea of Investment Savings Accounts (ISAs), often referencing the Swedish ISK model as a best practice example, including in our annual reports on the real return of long-term and pension savings. This long-standing advocacy helped pave the way for today’s EU blueprint, highlighting the need for accessible, transparent, and tax-advantaged accounts to make capital markets work better for EU citizens.
“This is a step in the right direction: people need simple, transparent and portable accounts to grow their savings and invest for the long term, as an alternative to low yielding bank accounts” said Aleksandra Mączyńska, Managing Director of BETTER FINANCE.
We particularly welcome that the Recommendation:
- bans minimum investment thresholds, ensuring SIAs are open to all;
- requires fair, proportionate and transparent fees, with straightforward transfers between providers;
- promotes advantageous and harmonised tax treatment across Member States;
However, BETTER FINANCE cautions that the initiative must not be diluted. Simplification must never come at the expense of investor protection. SIAs must not include overly complex or risky products, and tax advantages must remain fair and accessible to all savers.
Since Member States are free to go beyond the baseline asset classes (shares, bonds, UCITS/ETFs) when designing their national Savings & Investment Accounts (SIAs), we call on all governments to prioritise the best interests of retail investors by ensuring the inclusion of truly cost-efficient, transparent investment options. Independent research, including BETTER FINANCE’s Real Return series, has consistently shown that high fees and hidden costs substantially erode long-term investor returns.
BETTER FINANCE also warns that without binding rules on portability, cross-border barriers will persist and limit the effectiveness of the scheme.
“The real test will be in national implementation. EU citizens deserve investment savings accounts that are genuinely simple, fair and offer good value for money,” Mączyńska added.
BETTER FINANCE therefore calls on Member States to move quickly and decisively, ensuring that SIAs boost long-term investments, boost financial literacy, and build a Capital Markets Union that works for people, not just institutions.
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