Increasing retail investors’ access to capital markets is vital if the EU aims to secure a sustainable economy, digital adoption, and shared prosperity for the future.
EuropeanIssuers and the Federation of European Securities Exchanges (FESE) release today the Joint Position Paper “Unleashing Retail Investor Participation in the Corporate Bond Market”.
Increasing retail investors’ access to capital markets is vital if the EU aims to secure a sustainable economy, digital adoption, and shared prosperity for the future. EuropeanIssuers and FESE invite EU policymakers to empower retail investors, allowing them to consciously participate in public capital markets by making investment practices accessible, simple, and transparent.
EuropeanIssuers and FESE are confident that granting retail investors access to corporate bonds would unlock a wealth of benefits. These instruments offer a crucial tool for building wealth and diversifying retirement portfolios. Additionally, evidence shows that investors also play a vital role in fostering market stability by contributing to the liquidity of corporate bonds.
Considering retail investors’ strong interest, increasing access to corporate bonds will be instrumental to boost retail participation in capital markets across the EU. Increasing their participation in the fixed-income markets will boost their financial knowledge and confidence, likely increasing their participation in equity markets as well. In return, it would be a significant step forward in helping to complete the Capital Market Union (CMU) and making the EU more competitive vis-à-vis other advanced economies.
Considering the overarching goal of the achievement of the CMU as regards greater retail investor participation, EuropeanIssuers and FESE advocate for exemptions for all categories of ordinary bonds (excluding structured bonds) from the scope of Packaged Retail and Insurance-based Investment Products (PRIIPs), and to adjust the scope of product governance requirements within MiFID II.
Both Associations call upon co-legislators to give sufficient attention to this matter as part of the Retail Investment Strategy negotiations in the next Parliament mandate.
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To view the Joint Statement online, click here
European Issuers/FESE
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