Retail Investment Strategy Proposal Analysis

This document is a technical report that discusses the Retail Investment Strategy (RIS) proposed by the European Commission on May 24, 2023. The RIS aims to address the low participation rates of retail investors in the capital markets, insufficient investor protection, and poor investment outcomes. It emphasizes the need for cost-efficient and unbiased financial advice and products. The report outlines the current financial landscape, highlighting the demographic challenges faced by EU households and their significant reliance on cash and bank deposits rather than financial securities. It details the differing perspectives of financial intermediaries and consumer organizations regarding the proposed legal framework, particularly concerning the ban on inducements and the value for money (VfM) concept. The report also presents the necessity for a systematic examination of the RIS to evaluate its potential benefits and effectiveness in improving the financial outcomes for retail investors.