Union retail investor protection rules

Background

The share of EU households' assets in financial securities, i.e. listed shares and bonds, is particularly low compared with similar economies, especially the United States. Increasing households' – i.e. retail investors' – participation would provide further financial support for the EU economy and priorities. In addition, a 2022 Eurobarometer survey highlighted the essential informational role of financial advisors for retail investors.

European Commission proposal

On 24 May 2023, The European Commission put forward the retail investment strategy, a package of two legislative proposals to strengthen retail investors' trust and confidence in securities markets. It is part of the strategy for the savings and investments union (2025), although it was first presented within the strategy for a capital markets union (2015).

The present proposal for an omnibus directive amending the retail investor legal framework focuses on bringing clarity in communication and preventing misleading marketing. It amends rules on advice and distribution of products to mitigate potential conflicts of interest for advisers and increase retail investors' value for money.

Provisional agreement

Negotiators for Parliament and the Council reached a provisional agreement on 18 December 2025. The proposed prohibition on fees paid by financial product manufacturers to distributing intermediaries in the case of non‑advised services (execution only) – already subject to rules – has been removed from the text. However, Member States can still choose to prohibit such fees. Any such fees would need to comply with the best‑interest principle and be clearly identified to retail customers. Moreover, to meet the simplification objectives, advisers offering diversified, non‑complex and low‑cost products are not required to assess the potential investor's knowledge and experience. The agreement also introduces comparison instruments to ensure 'value for money', as well as supervisory 'benchmarks' for insurance products. Finally, the agreement encourages Member States to implement financial literacy programmes, and draws attention to financial influencers, named 'finfluencers'.

For the Council, the Committee of Permanent Representatives (Coreper) endorsed the agreement resulting from interinstitutional negotiations on 5 June 2026. In Parliament, the committee responsible for the file – the Committee on Economic and Monetary Affairs (ECON) – approved the provisional agreement on 23 June 2026 with 33 votes in favour, 23 votes against, and 2 abstentions. The European Parliament is expected to vote on the agreed text during the first November part‑session.