The European Commission is currently reviewing capital market rules through its MiFID II/MiFIR proposal, originally presented in 2021. In the midst of a cost of living crisis, there is no time to wait on any further studies or strategies from the European Commission to address the poor quality of financial advice given to consumers in Europe. Urgent reforms are needed now to ensure European consumers have access to high quality, unbiased investment advice.
If adopted, the MiFID II/MiFIR rules will establish a consolidated tape or a ‘price feed’ for stock trades across the EU’s disparate trading venues. Such a tape should increase transparency and empower investors, including ordinary citizens when investing into Europe’s capital markets.
However, much more is needed, especially considering the current cost of living crisis. Today, more than ever, we need to put the ‘heart’ back into financial services as Mairead McGuinness promised when she took on the job of EU Finance Commissioner. For the S&D Group, the ongoing MIFID II/MiFIR review can only be a success if we completely reform the way financial advice is delivered and ensure a fairer deal for consumers in the EU.
Eero Heinäluoma is MEP in the Group of the Progressive Alliance of Socialists and Democrats.
