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Retail investment strategy proposal – overcoming cross-border business challenges through legislative process
This article provides a comparative analysis of the changes brought forward by the Retail Investment Strategy (RIS) proposal within the European Union and a critical discussion of its potential impacts. Given the limited scope of this article, the authors intend to deal mostly with cross-border business relations. The purpose of our research was to assess the impact of the current wording of the RIS proposal on existing legislative framework (MiFID, IDD, PRIIPs, and others) and to highlight potentially problematic or even counterproductive provisions. The RIS proposal impacts a wide spectrum of financial products and represents a further stage of so-called "Mifidization process". Talking about a strategy that will result in a framework amending several areas of financial services, one would reasonably expect to see unification and simplification tendencies, e.g. in information disclosure requirements. Last but not least it is rational to assume compatibility with existing legal framework, e.g. Rome I Regulation. But is this really the case? And will it lead to higher consumer protection and financial literacy standards? As we see it, the European Commission's proposal raises many hidden challenges that may prove problematic in practice and should therefore be further considered by the European Parliament and Council as a part of the upcoming European legislative process.
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