On 12nd of October, ESMA presented its work programme for the years 2023 to 2028.
With a new President and Director General in place, ESMA could not disappoint with this programme.
The least we can say is that this latest one is not a complete break with the previous one…which seems quite logical as ESMA’s mandate has not undergone any significant transformation in the last year. However, its powers and resources continue to expand and so does its work programme.
The new focus on data processing seems very relevant and will undoubtedly be welcomed by all financial market participants, especially those who are constantly faced with new reporting obligations.
In the field of retail investor protection, which is of particular interest to Neuroprofiler, there is no revolution.
ESMA certainly aims for greater engagement with the latter and sets out a number of priorities.
- ensure access to clear, reliable and understandable information by reducing the size and complexity of the information and simplifying the product documentation
- contribute to the implementation of product labels simplifying the choice for these investors
- increase the use of consumer testing when implementing new policies or regulations.
There is also a point that will make some people smile: focus on the cost and quality of investment advice by ensuring the quality of training of investment advisers.
Does this mean that the shoemakers children are not the worst shod?
At Neuroprofiler, we strongly believe that the training for investors but also for advisors who interact with these investors is absolutely crucial.
Particularly in countries with a tradition of universal banking, such as France, the task of the advisor is made particularly difficult by the number and heterogeneity of the products he or she must sell. Moreover, as bank distribution networks are under strong deflationary pressure on their operating costs due to the low interest rates until recently and the importance of IT investments, the training of bank advisers seems to have been left somewhat to the side.
Beyond the training of advisers, it is also the training of clients that is fundamental. In this area, ESMA’s programme remains more discreet. It is clear that this is a complicated area where the interaction between a European agency and national supervisory authorities closer to the end customers can still be optimised.
Given the desperate need for advisor and client education, and the timidity of the European Financial Services Authority’s programme, we at Neuroprofiler believe that our new financial education module, EduProfiler, is very timely.