Making investors out of Europeans
Today, the Plenary voted on the modernisation of the key information document for financial products. This vote moves the Savings and Investment Union from theory to reality.
Context. Retail investors are ordinary households that want to invest in the real economy. There are not many of them in Europe: more than 70% of EU citizens have never invested in financial products — either because they consider it risky, or because they don't even know it's possible. This needs to change. We need to turn Europeans into investors.
The law that was voted on strengthens consumer information by making financial products more transparent and easier to understand.
Stéphanie Yon-Courtin (Renaissance/France), our lead negotiator and Parliament's rapporteur, says: "Let’s be clear. This is one of the rare parts of the EU financial regulation dedicated to households. We can make rules and regulations for bankers, market places and asset managers but at the end of the day, it’s private individuals that need to do the act of investing to fuel the real economy. We tried to make that easier. So, when browsing financial products, people who do not have a master's degree in finance will now have access to simpler and more consumer-friendly information. Financial products will now be accompanied by a document including a 'Product at a glance' section, where all the information needed will be broken down in simpler terms."
Stéphanie Yon-CourtinRenew Europe MEP, France, Renaissance
Sadly, another law that was part of the “Retail Investment Strategy” was rejected by just 15 votes. As a result, good rules like making "finfluencers" (people pushing financial advice on social media) accountable for the investment products they promote will be delayed.
Stéphanie Yon-Courtin adds: "Financial influencers have become 'financial advisors 2.0' online. While some are good, others are plain fraudsters. Under the agreement we had reached, finfluencers would have had to be transparent about the investments they are pushing on their social media feeds and disclose deals they have with manufacturers of financial products. Today’s vote mean that this rule will be delayed indefinitely. I very much regret this gift to online scammers. I will keep on fighting for it. Young people are increasingly eager to invest online: that’s good but we need to make sure it's safe."
Stéphanie Yon-CourtinRenew Europe MEP, France, Renaissance