EU households hold over €33 trillion in financial assets, according to official European Commission estimates. However, a significant share remains in low-yield deposits rather than invested in capital markets, highlighting untapped potential for individuals to grow their savings while supporting economic growth and resilience.
As the leading pan-European capital market infrastructure, we care deeply about this disconnect. Empowering retail savers to become retail investors is essential in order to unlock the potential of the Savings and Investments Union (SIU) and achieve the Union’s long-standing goals of deeper, more integrated capital markets, broader financial inclusion and stronger funding for European companies.
While policymakers across the EU have already taken important steps, there is more work to be done. The Retail Investment Strategy (RIS) and ESMA’s recent Call for Evidence on retail participation are timely efforts to revisit and reframe the investor journey. As part of this debate, we are putting forward our views on the changes needed to ensure capital markets better serve Europe’s savers.
What needs to change?
- A more proportionate regulatory framework is imperative to simplify access.
Current frameworks such as MiFID II and PRIIPs, while well-intentioned, introduce unnecessary complexity. We call on the European Commission and co-legislators to ensure that retail investors can access simple, low-risk instruments (such as senior corporate bonds) without being discouraged by excessive disclosure, testing and documentation requirements, by introducing targeted exemptions. - European savings and investments accounts.
National initiatives such as Sweden’s Investment Savings Account (ISK) show the power of tax-incentivised, flexible and user-friendly investment schemes. We believe an EU-wide framework for simple savings and investments accounts (portable across borders, compatible with digital onboarding and connected to transparent multilateral trading venues) can significantly boost retail engagement. - We must strengthen market-based pension solutions.
Long-term saving is one of the most effective drivers of retail investor participation. Member States should promote (partially) funded pension systems, enhance cross-border portability of occupational schemes, and revitalise the Pan-European Personal Pension Product (PEPP) to make it a meaningful tool for retirement savings across the EU.
Who should act?
To make these changes a reality, we call on:
- The European Commission and co-legislators to use RIS negotiations to embed more proportionate rules, support EU-wide savings accounts and future-proof the PEPP.
- Member States, supported by the Commission, to adapt national pension systems, lead on financial education initiatives, and consider the introduction of ISK-like accounts.
- ESMA and national regulators to promote supervisory convergence and proportionality in retail-facing rules.
- Market participants, including ourselves, to drive cost-effective innovation and competition.