The Commission has shown an interest in promoting low-cost, passive investment products like ETFs. How can future EU policies better account for the diversity of investors and products across member states?
MEP Ferber: Passive investment products can be a great option for many investors, but we should be careful to not only allow for one-size-fits-all solutions that work for some, but not all clients. European financial legislation has to be open enough to allow for different outcomes. In the end, what matters is that the client gets the investment product that is right for his specific circumstances, time horizons and risk appetite. Depending on the specific situation, this can be a passive product, but does not have to be.
Adrien Couret: Future EU policies should adopt a more inclusive approach that reflects the diversity of investment products and investor profiles across member states. They should not encourage one particular investment vehicle to the detriment of others and contribute to ensure that investors with different risk tolerances and financial goals have access to a variety of options that suit their needs.
Insurance-based investment products (IBIPs)for example present a particularly valuable alternative to ETFs, as they offer a combination of investment and insurance benefits. Features such as capital protection and guaranteed returns make IBIPs attractive to risk-averse investors, addressing one of the key barriers to increased retail investment in the EU. By providing a safety net against market volatility, these products contribute to broader financial stability and investor confidence.
As actively managed investment products, they also play a strategic role in supporting the EU’s economic sovereignty by fostering financial stability, long-term investment, and consumer protection.
Many regulatory initiatives focus on cost and performance when evaluating retail investment products. How can we ensure that broader aspects of value (such as capital guarantees, long-term horizons, and insurance benefits) are properly acknowledged?
MEP Ferber: The current regime works actually quite well to allow for a broad range of different outcomes. Recent proposals might however shift the balance to a narrowly focussed definition of client interest that relies mostly on cost. We should think very careful if this is indeed the way to go. I think it would be a mistake to focus only on one metric and only on quantitative assessments of that metric. What clients need is a broad qualitative assessments and sensible recommendations that are based on such an assessment.
Adrien Couret: EU policymakers should recognize that the value of an investment product extends beyond cost and performance metrics. While affordability and returns are crucial, they do not fully capture the broader benefits offered by various financial instruments, particularly insurance-based investment products.
A more nuanced regulatory framework should acknowledge the additional protections and long-term benefits that products such as insurance-based investment products (IBIPs) provide. Features such as capital guarantees, guaranteed returns, and risk management mechanisms help safeguard investors against market volatility—an essential consideration for risk-averse savers.
Additionally, it is essential to account for the wide variety of insurance products offered across EU member states. Each country has distinct financial traditions and savings instruments that serve unique purposes.
There has been growing support for a label identifying investment products that channel capital into EU-based projects. Do you support this? And beyond labeling, are there other concrete steps the EU can take to harmonize capital markets and prevent regulatory fragmentation?
MEP Ferber: I am not convinced that a European label is the right approach as it both oversimplifies and overcomplicates the process. We have seen the same issue with the taxonomy for sustainable investments. On the one hand, it only provides for binary outcomes, which does not correspond well with a world that is nuanced and not easily separated into two buckets. On the other hand, the compliance requirements are often quite burdensome. I trust that with appropriate and accurate disclosures most investors can understand where their money goes, even without a label.
“The upcoming review of the Shareholder Rights Directive is an opportunity to strengthen shareholder democracy, and improve transparency, accountability, and investor confidence”
Adrien Couret CEO, Aéma Groupe
Adrien Couret: A label alone will not resolve existing market fragmentation. One critical area requiring reform is the harmonization of investment rules across member states concerns disparities in regulatory framework conditions for asset managers and financial institutions. Establishing a more standardized set of investment rules across the EU would ensure a level playing field and increase market efficiency. Strengthening and unifying application procedures would also enhance market integration by simplifying processes for firms and investors, allowing businesses to more easily access capital.
Financial markets play a vital role in facilitating economic growth. To enhance market efficiency, the EU should harmonize operating rules, including stock market listing conditions and the mechanisms that govern investor-issuer interactions. Standardizing these aspects would improve market liquidity, transparency, and accessibility across member states.
Improving retail participation in capital markets is a key goal of the Capital Markets Union. How important is enhancing shareholder rights (such as lowering the thresholds for submitting shareholder resolutions) in empowering retail investors and encouraging more meaningful participation in corporate governance?
MEP Ferber: Improving shareholder rights is certainly one part of the equation to make the Capital Markets Union a reality. Right now, things are quite straightforward for investors if they remain in their national context. Once, they start to diversify and invest in other Member States, things get unnecessarily complicated. Submitting a resolution, determining a proxy or simply voting in an annual general meeting are a hustle in a cross-border context. If we take the notion of a Capital Markets Union seriously, that should not be the case.
Adrien Couret: As more Europeans seek to channel their savings into projects that support ecological and economic transitions, it is essential that they have a say in corporate decision-making. Yet, shareholder d e m o c r a c y i s currently hindered by outdated national regulations and case law across the EU. As companies grow larger, the financial requirements to influence governance become increasingly unattainable, making it difficult for individual investors to express concerns or influence corporate policies.
Reforming shareholder resolution thresholds in proportion to company size would make it easier for retail investors to submit proposals on critical issues such as climate change, corporate governance, and executive compensation. The upcoming review of the Shareholder Rights Directive is an opportunity to strengthen shareholder democracy and consequently improve transparency, accountability, and investor confidence, ultimately fostering a more dynamic and inclusive capital market in Europe.
Given the rise in investor interest in sustainability and the green transition, how can the EU ensure that savers have real opportunities to influence the environmental and social direction of companies they invest in?
MEP Ferber: We already have a comprehensive framework for sustainable investments: from the taxonomy that governs what can be considered green to a disclosure regime in the SFDR and joint standards for green bonds and ESG rating agencies. Unfortunately, all these elements do not work together seamlessly and we need to think hard how to overcome that. With regards to sustainable finance, now is the time for consolidation not for new proposals.
Adrien Couret: To ensure savers can influence the environmental and social direction of companies they invest in, the EU must not only strengthen shareholder rights and overcome regulatory fragmentation, as already mentioned. It must also enhance corporate accountability.
It is vital to ensure that investors have the information they need to channel and monitor their investments and the companies they decide to invest in. In the context of the current Omnibus I debates, policymakers should reconsider the implications of narrowing the scope of sustainability reporting. A balanced approach that maintains reporting obligations across a wider spectrum of companies will be crucial in ensuring transparency, facilitating sustainable investments, and supporting the EU’s broader environmental and social objectives.
Aéma Groupe was founded by Macif and AÉSIO Mutuelle. With the acquisition of Abeille Assurances in 2021, followed by the creation of Ofi Invest in 2022, Aéma Groupe is a leading mutual insurance company in France with a revenue of 16.1 billion euros in 2024. Its more than 20 000 employees and 1,800 elected representatives work every day to support and protect more than 12.1 million policyholders.
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