Draft report on the Retail Investment Strategy


On 5 October 2023, European Parliament rapporteur Stéphanie Yon-Courtin (Renew Europe) published her draft report concerning the Retail Investment Strategy (RIS).

Philippe Setbon, Chairman of the French Asset Management Association (AFG), comments on the draft report:

« We express our appreciation for rapporteur Stéphanie Yon Courtin’s draft report as it addresses several of the key EU challenges for citizens and compagnies, in terms of investor protection, financing of the economy and strategic autonomy.

In that regard, we believe that the EU should abandon the ban on inducement and benchmarking approach in the Value for Money assessment. European or National benchmarks on costs are likely to lead to a standardization of funds to the detriment of financing the European Economy transitions. Indeed, innovative, alternative, or sustainable products carry higher research and development, data, or due diligence costs. In a context of rising inflation and high levels of state indebtedness, it is increasingly evident that Europe must mobilize private funding towards innovation and ESG transition.

We also believe that the value- for- money principle may be relevant if it goes beyond the price of a product and includes qualitative aspects. Assessing the value- for- money should be performed by all actors in the value chain (including insurers, distributors) and not only at the producer level. In addition, it should consider the increasing cost born by asset managers on financial as well as ESG data. Finally, any type of ban on inducement is a counterproductive measure. It would drive away from capital markets European retail investors who need advice and support to make the right choice of investment depending on their risk profile, objectives, and projects“