EIOPA consults on retail investor protection, including engagement with disclosures

Posted on February 4, 2022 by Editor

The European Insurance and Occupational Pensions Authority (EIOPA) has launched a public consultation on retail investor protection, in relation to the sale of Insurance-Based Investment Products (IBIPs).

We were interested to read its detailed discussion on enhancing investor engagement with disclosures, and in particular on drawing out the benefits of digital disclosures, in the first of five focus areas. EIOPA’s proposals address both duplicates and gaps between different pieces of EU legislation. “EIOPA generally sees the need for a shift towards more consumer-focused disclosures,” says the Authority. “Disclosures should build on insights from behavioural science to promote sensible decision-making, be simpler and present information in a more structured, accessible and interactive way.”

This is a proposal we at XBRL International can certainly get behind, particularly in terms of digital-first thinking in developing reporting requirements. The evolving intersection between digital reporting and the consumer digital revolution is worthy of further consideration and exploration by many of us, as are the uses retail consumers might make of reporting data.

In a further area of focus, EIOPA considers the risks and opportunities presented by new digital tools and channels for selling investment products, identifying risks such as information asymmetry for consumers and misuse of client data. The consultation will inform EIOPA’s response to a Call for Advice from the European Commission (EC). In turn, this will feed into the EC’s implementation of its Capital Markets Union Action Plan, specifically its retail investment strategy, which aims to ensure that retail investors can take full advantage of capital markets.

For anyone with feedback to offer on these themes, responses are due by 25 February 2022. EIOPA will also hold a public hearing with stakeholders on 18 February 2022, which is open to registration until 11 February.

Read more here.