On 14 March 2024, the EACB has submitted its response to the European Securities and Market Authority (ESMA) Discussion Paper on MiFID II investor protections topics linked to digitalization.
Considering the role of cooperative banks as distributors of investment products and their various digital channels and strategies, as well as the significance of the topics considered by ESMA in relation to the ongoing co-legislators’ discussion on the Retail Investment Strategy, the EACB highlights in its response the following:
• Existing MiFID II requirements, complemented by the ESMA Guidelines on Product Governance, effectively tackle key issues highlighted in this Discussion Paper (i.e. Marketing Communication, targeted marketing practices, affiliates, digital engagement practices…).
• Any new regulatory measures should prioritize abstract, principles-based specifications over exhaustive detail, considering the evolving landscape of digitalization. Hence, We advocate against initiatives that add administrative burden or overwhelm customers with information.
• Regarding the layered approach on key information, we have concerns about its effectiveness, particularly as it is viable only for electronic documents, posing challenges for clients still reliant on paper. Implementing layering alone risks shifting rather than reducing the information burden, potentially diluting essential information and risking client disengagement.
For more information, please see our response to the ESMA DP.