Retail Investing Surge Cushions Economic Downturn and Calls for Adequate Reforms

Date: 1st June 2022
Type: Press Releases

Over the last two years, health-related restrictions and economic shutdowns had unforeseen effects on European capital markets. An increase in disposable income available for EU households to invest, and at least four and a half million[1] previously inactive EU savers now investing in the real economy and trading in financial instruments, has created a new generation of “retail” investors in the EU.

What’s more, is that these developments came on the back of increased investor activism (and interest in shareholder engagement) and in the wake of disruptive FinTech business models that make investing a much more attractive and accessible proposition for EU households, bringing them closer to capital markets. That being said, the exercise of shareholder rights unfortunately still remains very challenging, while the investor protection framework (product suitability rules, transparency, disclosures, etc.) remains inadequate and requires reforms.