Retail investor protection rules

It affects retail investors and people buying investment or insurance-based investment products. It also affects firms that manufacture, market, advise on, or distribute those products.

• Bans inducements for non-advised sales and tightens best-interest duties for investment advice.
• Requires product pricing processes and ESMA/EIOPA benchmarks to identify poor value-for-money products.
• Strengthens cost, charge, risk, marketing, suitability, and appropriateness disclosures for retail clients.
• Improves supervisory powers, cross-border cooperation, financial literacy measures, and adviser knowledge requirements.

• Directive 2014/65/EU (32014L0065)
  • art. 1(4): replaces point (a)
  • art. 3(2): replaces points (b) and (c)
  • art. 4(1): adds points (66), (67) and (68)
  • art. 5a: inserts procedure addressing unauthorised digital activities
  • art. 7: adds subparagraph to paragraph 3 and inserts paragraph 3a
  • art. 8: replaces second paragraph and adds paragraph
  • art. 9(3): replaces first subparagraph and adds point (d)
  • art. 16: replaces paragraph 1, deletes parts of paragraph 3, inserts paragraphs 3a and 7a
  • art. 16-a: inserts product governance requirements
  • art. 16a: replaces article on exemptions from product governance requirements
  • art. 21: adds paragraphs 3 and 4
  • art. 24: amends best-interest, information, risk-warning and advice provisions; deletes paragraphs 8, 9 and 9a
  • art. 24a: inserts inducements rules
  • art. 24b: inserts costs, charges and third-party payment information rules
  • art. 24c: inserts marketing communications and practices rules
  • art. 24d: inserts professional requirements
  • art. 25: replaces paragraphs 1 to 3; amends paragraphs 4, 6 and 8
  • art. 30: amends eligible counterparty provisions in paragraphs 1 and 2
  • art. 35a: inserts reporting of cross-border activities
  • art. 69(2): inserts supervisory powers points (ca), (ka), (v), (w) and subparagraphs
  • art. 70(3): adds points (xxxvii) to (xxxxii) to point (a)
  • art. 73(1): replaces first subparagraph and point (a) of second subparagraph
  • art. 86: replaces paragraph 1 and inserts paragraphs 1a and 1b
  • art. 87a: inserts collaboration platforms
  • art. Title VIa: inserts title on financial education with Articles 88a and 88b
  • art. 88a: inserts financial education of retail clients
  • art. 88b: inserts financial education and marketing communication rule
  • art. 89: replaces article on delegated powers
  • art. Annex II: amended as set out in Annex I to proposal
  • art. Annex V: adds annex as set out in Annex II to proposal
• Directive (EU) 2016/97 (32016L0097)
  • art. 2(1): amends points (4) and (8); adds points (19) to (22)
  • art. 3: amends paragraphs 4 and 5 and inserts paragraph 5a
  • art. 5: replaces paragraphs 1 and 3; adds paragraph 4
  • art. 9a: inserts reporting of cross-border activities
  • art. 10: replaces paragraph 1; amends paragraphs 2, 4 and 6
  • art. 12(3): adds supervisory powers and related subparagraphs
  • art. 12a: inserts cooperation and information exchange with EIOPA
  • art. 12b: inserts collaboration platforms
  • art. 14: replaces complaints article
  • art. 16a: inserts financial education of customers
  • art. 16b: inserts financial education and marketing communication rule
  • art. 17(2): replaces paragraph on fair, clear and identifiable information
  • art. 18: replaces article on general information to customers
  • art. 19: amends title and remuneration disclosure provisions
  • art. 20: amends pre-contractual product information and insurance product information document provisions
  • art. 22(1): replaces first subparagraph
  • art. 23: replaces article on electronic distribution and durable media
  • art. 25: replaces article on product oversight and governance requirements