"Prohibition of commissions would have strongly inhibited the spread of private old-age provision"
The EU Commission has presented its retail investor strategy. The German Insurance Association (GDV) sees light and shade in the draft law.
The insurance industry is cautious in its assessment of the EU retail investment strategy. "The good news is that a general ban on commissions is off the table for the time being," says the Chief Executive of the German Insurance Association (GDV), Jörg Asmussen. "This is a good signal, because a general ban on commissions would greatly inhibit the spread of private pension provisions. That would be counterproductive at a time when we are debating to reform subsidized private pensions in Germany."
Overall, the rules for product design and for the brokerage of investment products would become more rigid and complex, GDV said. The EU Commission's goal of bringing broad sections of the population into the financial markets as part of the Capital Markets Union and making it easier for them to accumulate assets would thus be made more difficult to reach.
However, there are also opportunities in the EU Commission's plan, according to the association. Examples include financial consumer education and the digital provision of consumer information, which should be short and easy to understand. Against this background, GDV will be intensively involved in the legislative process that is now to follow.
