European financial regulators launched a consultation today on proposed changes designed to enhance disclosure to retail investors.
The European Supervisory Authorities (ESAs) — which includes the region’s securities, insurance and pension regulators — issued a consultation paper proposing amendments to the existing disclosure rules for packaged retail investments, such as investment funds and structured products, and insurance-based investment vehicles.
Currently, firms are required to provide investors with a standard three-page disclosure document setting out the key features of these products before investors make a purchase.
The proposed reforms aim to address regulators’ concerns in several areas, including the disclosure of investment costs, the use of future performance scenarios and issues involving multi-option products.
The consultation seeks feedback by Jan. 13, 2020. The regulators aim to have reforms implemented for 2022.