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Insurers support committee proposals on retail investor strategy

The European Parliament's Economic and Monetary Affairs Committee has discussed the EU retail investment strategy. Important from the insurers' point of view: a ban on commission was not adopted.

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The insurance industry welcomes the results of the vote on the EU’s Retail Investment Strategy in the European Parliament. "The decision of the Economic and Monetary Affairs Committee is a step in the right direction," says Jörg Asmussen, CEO of the German Insurance Association (GDV). "The adopted report would help retail investors to better assess and utilise capital markets. In particular, we support the committee's proposal that there should continue to be different remuneration systems for the sale of investment products."

Through its Retail Investment Strategy, the European Commission wants to ensure that more savers become retail investors and benefit from the returns of capital markets. The objective is to make investment easier for private investors. At the same time, the strategy aims to increase consumer protection. The European Commission presented its proposals in May 2023.

Yesterday (Wednesday) evening, the Committee on Economic and Monetary Affairs in the European Parliament voted on its report on the Retail Investment Strategy. Among other things, the committee members propose to largely preserve the coexistence of different remuneration systems for the sale of investment products, including commission-based sales.

Retail investor strategy is an important pillar of the Capital Markets Union

"It is important that the Committee has found a position before the European Elections in June," said Asmussen. "The Retail Investment Strategy is an important pillar of the Capital Markets Union and cannot wait any longer."

The committee members also discussed how to ensure that investment products always benefit customers. "We have always said that our products must offer value for money," says Asmussen. "The Economic and Monetary Affairs Committee's proposals would enable supervisors to identify and sanction black sheep on the market."

Once the European Parliament and Council of the EU have adopted their negotiating positions, the negotiations between the European institutions can begin. Only at the end of this so-called trialogue will the new legal framework for the sale of investment products for consumers be finalised. "We support the goal of the Retail Investment Strategy and will continue to engage in the debate in order to contribute our expertise and the practical experience of insurance companies," says Asmussen.

Christian Ponzel (© Christian Kruppa / GDV)
Christian Ponzel
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