BVI: Time to withdraw the Retail Investment Strategy

The European Commission is suggesting simplifications to the Retail Investment Strategy. This was requested by Parliament and the Council during the first trilogue negotiation on 18 March 2025, as the legislative proposal would lead to a significant increase in bureaucracy without achieving the objectives – enhancing investor protection and increasing retail investor participation in capital markets. However, the proposed simplifications also fail to achieve these goals.

Thomas Richter, CEO of the German Investment Funds Association BVI, comments:

‘The Retail Investment Strategy has become an end in itself, regardless of its benefits and costs. Practically all stakeholders are dissatisfied with it, including the financial sector, consumer advocates, and regulators. In Brussels, however, the process seems to be more important than the outcome. Once the train has left the station, no one wants to pull the emergency brake, even though it is heading in the wrong direction. The Commission should finally have the courage to withdraw the Retail Investment Strategy.’