RegulationOct 29 2014

EU needs to consider retail market consumers

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European policymakers must consider retail investors as well as institutional ones when creating legislation, Liz Field, chief executive of the Wealth Management Association, has said.

“Encouraging investment, improving people’s wealth and creating high standards of consumer protection all play a part in meeting common EU priorities,” she said.

However, she added that legislation over the past five years had failed to recognise the local nature of retail investment services.

She said: “This ultimately undermines the investment culture of member states. Allowing national parliaments to have a greater say on the retail markets and people they serve will be of benefit to all.”

Ms Field also appealed for a period of calm, adding: “After five years of implementing transformative pieces of legislation post-crash, we need to have a cumulative impact assessment of their effects and an audit of whether all member states are applying them correctly in the first place.

“There should be no rush to push through new proposals to cover poor implementation.”

Adviser View

Paul Holiday, financial adviser at Norwich-based Greensky Wealth, said: “On the back of the mis-selling, such as Keydata and Arch Cru, the WMA stance would fit the continuing theme of consumer protection, and will help prevent the likelihood of anything like this happening again.

It makes sense to differentiate between the markets to avoid a blanket approach, and is part of the hugely important continuing theme of raising standards in the industry.”