European Investors participated in the Eurofi Financial Forum 2017 (“What way forward for the EU27 and Eurozone?”) in the Estonian capital of Tallinn on 13, 14 and 15 September 2017. This event was organised by Eurofi (the European think tank dedicated to financial services), in association with the Estonian EU Council Presidency.
Mr. Niels Lemmers, managing director of European Investors, contributed to the session on “Attracting Retail Investors to European Financial Markets”. This roundtable discussed the importance of retail investors for the development of capital markets in the EU and the achievement of CMU objectives, the main obstacles to overcome and the regulatory and market-driven actions at the distribution and product levels needed to increase the engagement of retail investors in securities markets.
Mr. Lemmers specifically touched upon on the obstacles preventing the growth of cross-border investment in the EU. This remains predominantly home-biased, particularly with regard to equity investment. There is need for less burdensome tax regulation and a harmonised level of investor protection, especially concerning (collective) redress opportunities.
At the roundtable, Mr. Lemmers said: “Individual investors with a longer time horizon should invest more in equity, everbody agrees on that. Now we need action to get that done. Let’s start with relevant and better information at point of sale, more transparency and unbiased advice in the interest of the client with a strong decrease in costs. We should use FinTech solutions such as robot advice but ongoing innovation is key in this era of digitalisation. The long term goals: an European approach on taxation of investments/dividends and (collective) redress opportunities. And we should not forget to invest heavily in Financial Education. Building a balanced ecosystem that brings us closer to a true single European capital market.”
Apart from participating in the events, European Investors’ representatives used the forum in Tallinn to meet with institutional investors, interest groups, regulators and other stakeholders.
For more information on the contribution of Mr. Lemmers, please click here.
For more information on the event, please click here.