SMSG publishes advice in response to ESMA’s call for evidence on retail investor journey under MiFID II
The European Securities and Markets Authority (ESMA) has published advice from its Securities and Markets Stakeholder Group (SMSG) in response to ESMA’s call for evidence on the retail investor journey under the Markets in Financial Instruments II Delegated Directive 2014/65/EU (MiFID II), launched in May 2025. The advice identifies a range of non-regulatory barriers to retail investor participation in EU capital markets, including differences in pension systems, cultural preferences for real estate over financial assets, limited financial literacy and the complexity of tax regimes and disclosures. It also considers the influence of digital platforms, the appeal of speculative investments among younger investors and the role of trust in financial markets. The SMSG notes that while investor protection remains a key objective, certain regulatory and market features may unintentionally discourage participation. The advice is intended to support ESMA’s ongoing assessment of whether adjustments or clarifications are needed to enhance retail engagement.