Retail investors will receive straightforward, readily comparable information on financial products, regardless of whether they are dealing with the securities, banking, or insurance sector, under new proposals unveiled today by European regulators.
The Joint Committee of the European Supervisory Authorities, which includes the region’s various financial regulators, published final proposals today for new disclosure documents that aim to provide investors with key information on various investment products throughout the European Union.
Regulators indicate that they expect the new three-page disclosure documents to increase the transparency and comparability of information about the risks, performance and costs of investment products.
“These new rules… are a major step forward for consumers,” said Gabriel Bernardino, chairman of the Joint Committee. “They are an innovative and pioneering new approach to risk, performance and cost disclosures that we believe lays a strong foundation for the future. Now, for the first time, consumers can easily compare different products and make informed investment decisions fitting their particular needs.”
The new rules have been submitted to the European Commission for approval, and are slated to come into force on December 31.