Retail investors hold significant amounts of assets and are therefore an important decision maker for the allocation of financial resources. Mobilising retail investors to take investment decisions in line with international climate goals could be an important factor in closing the funding gap to meet emission reduction goals.
The report analyses relevant provisions of the MiFID II Directive including related secondary regulation and guidelines. The aim is to understand the existing regulatory framework and the extent to which there is scope to include the discussion of non-financial investment objectives in financial advice from a regulatory perspective.
The report’s objective is to formulate recommendations to reform the investment advice in line with Europe's long-term funding needs. In addition, the report aims to provide a realistic picture of current investment advice practices, the report was undertaken in cooperation with public and private sector stakeholders from overall 12 EU countries and 5 non-EU countries.