Retail Investors Benefit from Regulatory Reform

05 Oct 2023

Cooperative banks at The European Association of Cooperative Banks (EACB) found that the changes to the Commission's legislation on the Retail Investment Strategy (RIS) will not achieve the strategy's goals in favor of retail investors.

The strategy to change the existing legislation by groundless evidence proves its failures, and the plan overlooks the diversity and co-existence of banking models. Similarly, the policymakers must consider ongoing challenges to retail banking's regulation, or the "regulatory tsunami." 

The challenges threaten business models, especially cooperative banks that serve households, impacting customer service and expectations. Cooperative banks are concerned that these changes may not benefit customers but disrupt the market model. 

The paper further outlines three messages or recommendations for regulatory reform.