ESMA asks input on the retail investor journey as part of simplification and burden reduction efforts

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today launched a Call for Evidence (Cf E) on the retail investor journey under Mi FID II. The purpose of this Cf E is to gather feedback from stakeholders to better understand how retail investors engage with investment services, and whether regulatory or non-regulatory barriers may be discouraging participation in capital markets. The Cf E explores:key retail market trends, such as the appeal of speculative products for younger investors and the influence of social media on investment decisions;the practical application of Mi FID II requirements in areas such as regulatory disclosures, assessment of suitability and appropriateness; andadditional areas such as the investor experience under the European crowdfunding framework and broader reflections on how to strike the right balance between investor protection and enabling informed risk-taking. Alongside the Cf E, ESMA also publishes a summary of the main points, translated into all EU languages to facilitate responses from consumers and their representatives. Background As part of broader efforts to support efficient simplification and burden reduction measures, ESMA launched this work to assess whether current rules support or hinder retail investor participation, and to explore if simplifications could help investors better engage with capital markets without weakening existing protections. Next steps Interested...