ESMA asks input on the retail investor journey as part of simplification and burden reduction efforts

The purpose of this CfE is to gather feedback from stakeholders to better understand how retail investors engage with investment services, and whether regulatory or non-regulatory barriers may be discouraging participation in capital markets.

The CfE explores:

• key retail market trends, such as the appeal of speculative products for younger investors and the influence of social media on investment decisions;
• the practical application of MiFID II requirements in areas such as regulatory disclosures, assessment of suitability and appropriateness; and
• additional areas such as the investor experience under the European crowdfunding framework and broader reflections on how to strike the right balance between investor protection and enabling informed risk-taking.

Alongside the CfE, ESMA also publishes a summary of the main points, translated into all EU languages to facilitate responses from consumers and their representatives.

Background

As part of broader efforts to support efficient simplification and burden reduction measures, ESMA launched this work to assess whether current rules support or hinder retail investor participation, and to explore if simplifications could help investors better engage with capital markets without weakening existing protections.

Next steps

Interested parties – including firms, trade associations, and consumer organisations – are invited to submit their input by 21 July 2025.

Based on the responses, ESMA, together with National Competent Authorities, will assess whether specific regulatory adjustments or clarifications may be needed to enhance investor protection and retail engagement in financial markets.

Further information: 

Dan Nacu-Manole

Communications Officer
press@esma.europa.eu