Politics · Other · 16 hrs ago

EU Parliament rejects proposed investor protection rules

EU Parliament rejects proposed investor protection rules

The European Parliament rejected proposed EU rules for small investors by 300 votes to 286.

The package was intended to change several EU directives on investment information and protections for people investing their money.

Some lawmakers said it would add bureaucracy and require more from financial and insurance advisers without improving investor protection.

Others objected that it left out a proposed ban on commissions paid to intermediaries by banks and insurers, which consumer advocates say can create conflicts of interest.

The proposal is not dead: lawmakers can suggest changes, and a revised text is expected to return for a later parliamentary vote.

EU member states' governments must also hold a final vote in the Council.

The EU wants more people to invest, rather than keep their savings in bank accounts, to help fund areas such as infrastructure, defence, digitalisation and environmental protection.

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What people are saying

René RepasiChair of the SPD group of MEPs
Instead of clear and understandable information, consumers would have been overloaded with additional details about costs and financial products.
via cash.ch
Markus FerberCSU member of the European Parliament
This is not a vote against retail investors.
via Handelsblatt
If we are serious about simplification, we cannot keep adding new layers of regulation.
via cash.ch