RIS: Adoption by the commission of the Retail Investment Package
On May 24, 2023, the European Commission published the Retail Investment Strategy (RIS) aimed at increasing citizens' participation in capital markets. This project has crucial implications for retail investors, particularly in terms of access to financial products and appropriate advice.
Investor protection rules are set out across sector specific regulation, including the Markets in Financial Instruments Directive (MiFID II), the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation, the Undertaking for Collective Investment in Transferable Securities (UCITS) Directive, the Alternative Investment Fund Managers directive (AIFMD), the Insurance Distribution Directive (IDD), and the taking-up and pursuit of the business of Insurance and Reinsurance Directive (Solvency II). Applicable rules can differ from one financial instrument to another and may sometimes be inconsistent, making the cumulative requirements confusing for retail investors.
This package aims at streamlining and modernising these rules, to place consumers' interests at the centre of retail investing and ensure that retail investors receive the same treatment and protection regardless of which investment products, marketing and distribution channels they choose.