On Thursday morning, Parliament and Council negotiators agreed on a series of changes to several EU directives with the overall aim of reinforcing investor protection rules, addressing retail customers participation in capital markets, and reducing dependence on bank loans especially for smaller companies.

Investment advice in clients’ best interests

According to the draft legislation agreed, financial and insurance advisors must ensure that the financial or insurance products and services they provide are suitable for their clients’ needs. Suitability must be assessed using proportionate and necessary information about the client, including their knowledge and experience, financial situation, ability to bear full or partial losses, investment needs and objectives, and risk tolerance.

Value for money and comparable financial products

Co-legislators agreed to prevent products that do not offer value for money from being released onto the market and sold to retail customers,…