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ESMA Anniversary Conference​
The European Securities and Markets Authority (ESMA), the EU financial markets regulator and supervisor, today publishes its fifth annual report on the costs and performance of European Union (EU) retail investment products. In the report ESMA looks at the market between 2012 and 2021 and finds that the costs of investing in the most important retail financial products continued to decline, albeit at a very slow pace.
Verena Ross, ESMA Chair, said:
“Investors are faced with an environment of high economic uncertainty, high inflation and relatively low market performance.  In this context, the high costs of certain investment products, particularly for retail investors, raise concerns about actual investment outcomes.”
“ESMA’s reporting on the cost and performance of retail investment products provides an annual snapshot of the market. Whilst the cost incurred by investors is slowly declining compared to the past years, the availability of well-designed and cost-efficient products is a key element to encourage increased consumer participation in the European capital markets.”
The key findings in the report are:
Cost and performance of retail investment products are key determinants of the benefits and risks for retail investors in the EU. Clear and comprehensive information on retail investment products can help investors assess the past performance and costs of products offered across the EU and foster retail investor participation in capital markets.  ESMA’s report helps to monitor progress in this regard by providing consistent EU-wide information on cost and performance of retail investment products. It also demonstrates the relevance of disclosure of costs to investors, as required by the MiFID II, UCITS and PRIIPs rules and the need for asset managers and investment firms to act in the best interest of investors especially considering their role in manufacturing and distributing investment products.
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