Capital Markets Union (CMU), Savings and Investments Union (SIU) and Retail Investment Strategy (RIS)

The EU Capital Markets Union (CMU) is a plan to create a Single Market for capital. The aim is to get money - investments and savings - flowing across the EU to benefit consumers, investors and companies, regardless of where they are located.  A first Green Paper on CMU was published in 2015, followed by various follow-up measures, a key one being the 2020 CMU Action Plan setting out 16 legislative and non-legislative measures, including actions of importance for intermediaries, such as increasing the quality of financial advice and an assessment and review of the rules related to inducements, investment advice and information disclosure.  Regarding the latter, in May 2023, the Commission published a Retail Investment Strategy (RIS) aimed at focusing on the interests of individual investors, looking in parallel at IDD (IBIPs chapter), MiFID II and PRIIPs.

The new European Commission (2024-2029) under Commission President Ursula von der Leyen, wants to bring new life to the CMU, transforming it into a Savings and Investments Union (SIU).

Commission's call for evidence on SIU - BIPAR input

Commission's Communication on SIU

Commission's RIS

RIS Trilogue - BIPAR Key Points

RIS Trilogue - BIPAR simplification suggestions

(Last updated in May 2025)

28 November 2024 - RIS: Together with other European associations representing the industry, BIPAR calls upon the EU co-legislators to assess the Retail Investment Strategy in light of the Commission's competitiveness objectives.

Ahead of the upcoming trilogue negotiations on the RIS proposals, BIPAR, together with other European associations in the financial services sector, calls upon the EU co-legislators to refocus the RIS on what matters: enabling citizens to invest in the capital market without imposing excessive burdens on the market.

The current RIS proposals would add further complexity and bureaucracy to the already heavily regulated frameworks that govern the distribution of investment and insurance-based investment products (IBIPs). This approach contradicts the new Commission’s commitments to reducing red tape for market participants, fostering a simpler regulatory environment and strengthening the attractiveness of EU financial markets.

BIPAR, together with other European associations in the financial services sector, asks the EU legislators to focus in particular on :

  • Simplification for firms and retail investors: The introduction of numerous Level 2 and 3 measures would create further uncertainty and complexity. The RIS should aim to streamline regulations and avoid imposing new, disproportionate compliance requirements.
  • Streamlined sales processes for retail investors: the advice process for purchasing products could extend to over two hours for certain products (e.g., IBIPs). The RIS should strive to reduce these barriers and ensure that investors can access European-regulated products (eg, UCITS funds or IBIPs) in a leaner way.
  • Reduction of information overload: The RIS should improve and focus on meaningful and relevant disclosures. Emphasising key product benefits, such as financial guarantees and other qualitative features that drive consumer investment decisions, will encourage greater participation in the EU financial markets.

With its members, BIPAR will continue to promote that the final RIS texts allow retail investors to take full advantages of the capital markets.

The joint statement was co-signed by the European Banking Federation, EFAMA, Insurance Europe, AMICE Mutuals, BIPAR, the Conference of EU Bancassureurs CEB, European Association of Co-operative Banks, European Association of Public Banks (EAPB), European Forum of Securities Associations, WSBI-ESBG and the EUSIPA - European Structured Investment Products Association).

“The EU's Retail Investment Strategy - Everything should be made as simple as possible, but not simpler”

Article written by Prof. Karel Van Hulle for BIPAR

February 2024