EC should use Retail Investment Strategy to help consumers better understand retail investment products


A new paper by Insurance Europe outlines how the European Commission can use its Retail Investment Strategy (RIS) to enable consumers to better understand retail investment products.

The RIS aims to provide consumers with clear, concise and comparable information about retail investment and insurance-based investment products. However, current EU disclosure rules make it very difficult for consumers to properly compare these products: in particular, to know whether or not a product includes insurance cover or benefits.

It is very important for potential retail investors to know whether or not products include these additional features, as the financial guarantees and insurance cover they offer can provide the security and confidence that even small savers need to participate in financial markets.

Insurance Europe has, therefore, set out a clear set of does and don’ts on how the Commission can use the RIS to make disclosures more meaningful and engaging, and thereby boost consumers’ confidence in retail investment.