TITLE: European Union's Financial Markets Regulator Outlines Actions to Simplify Retail Investor Journey
BODY:
On 12 March 2026, the European Securities and Markets Authority (ESMA) published its takeaways from the 2025 Call for Evidence on the retail investor journey and outlined concrete actions to make investing more accessible for retail investors in the European Union's capital markets.
ESMA identified three priority areas for improvement: streamlining disclosure requirements to address information overload; reducing complexity in suitability and appropriateness assessments; and simplifying Markets in Financial Instruments Directive (MiFID II) requirements on sustainability preferences. The authority will employ consumer testing to validate improvements to disclosures and digital investor journeys, with particular focus on mobile-first users. Stakeholders responding to the Call for Evidence highlighted that retail investors encounter multiple regulatory and non-regulatory barriers when beginning to invest. Key concerns include disclosures that are too lengthy and complex, lacking digital-first design; suitability and appropriateness assessments that, while valued for investor protection, are considered overly burdensome, particularly for simple products distributed through digital channels; and integration of sustainability preferences deemed excessively complex. Beyond regulatory obstacles, respondents identified non-regulatory challenges including lack of trust in financial markets, high fees with limited product comparability, low financial literacy, cultural factors, and complex cross-border taxation.
ESMA will use the report to guide its future technical advice on MiFID II delegated acts and potential updates to its guidelines, ensuring alignment with the final outcome of the Retail Investment Strategy. The authority emphasises that enhancing the investor journey requires collaborative effort among ESMA, market participants, the European Commission, co-legislators, and national governments.
REFERENCES:
https://www.esma.europa.eu/press-news/esma-news/esma-sets-out-actions-simplify-retail-investor-journey-and-make-investing-more