The European Commission is considering banning incentives to sell financial products

European Commissioner for Financial Services, Mered McGuinness, made this clear Tuesday in a discussion with Economic Committee of the European Parliament That evaluations by the CEO of the community show that “retail investors are often advised to buy more expensive products and they are not always the most suitable for their needs.”

“Products with incentives are on average 35% more expensive than those without.”McGuinns said, referring to the commissions or benefits commercials or financial advisors get for selling a particular financial product, usually from the company that created it.

I insist on this kind of incentive, “It may lead to a conflict of interest that may have a negative impact on the quality and prices of investments.”

The European Commission, which plans to present a retail investment strategy in the coming months, has analyzed the case of the Netherlands and the United Kingdom, which banned this type of incentive a few years ago.

In the Dutch case, it concluded, this led to “a shift towards lower-cost and more diversified products”, as well as “a slight increase in retail investment” and “greater confidence in financial advice”, according to the commissioner.

McGuinness admitted that Financial markets differ from country to country in the European Union and the issue is “divisive”, which urged further discussion of the procedure; But he insisted that it could only be resolved with greater transparency as this had already been incorporated into other financial legislation and “the scenario has not changed”.

He said the commission was working on measures that would make it easier for retailers to obtain “decent” advice at “reasonable prices” that fit their needs and give them the best return for their money that they can trust.

The idea of ​​an executive community Encourage these types of consumers To invest to get a return on their money, because, as the pandemic has shown, European families’ savings often remain in deposits and retailers do not think about investing.