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Let Advisers Advise: Clearing the path to a true Savings and Investments Union
Europe's financial advisers risk getting trapped in a regulatory maze that could stifle the competitiveness we desperately need. While the Commission's simplification proposals sound promising, they could miss what really matters: letting advisers advise, not police.
The European Union stands at a crossroads in its quest to build a genuine Savings and Investments Union. The European Commission’s proposals to simplify the Retail Investment Strategy (RIS) represent welcome progress, yet they fall short of the transformative vision needed to channel citizens' savings into sustainable economic growth. In other words, good intentions need better execution.
Representing 500,000 financial advisers and intermediaries across 29 countries, FECIF recognizes the Commission’s efforts to reduce regulatory burdens. Simplifications around professional client classification, waving mandatory inducement tests, and moving away from standardized suitability reports are positive steps. However, these alone will not deliver the robust, competitive investment landscape Europe needs.
Currently, the regulatory framework creates unnecessary duplication, undermining efficiency without enhancing protection. National and European supervisory authorities already review products for cost-efficiency and compliance. Once authorized for the market, advisers should not be required to second-guess professional oversight. Responsibility for compliance should clearly rest with product providers and regulators, allowing...
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