On December 14, the European Securities and Markets Authority (ESMA) published a discussion paper on investor protection and digitalization. We consider it positive that ESMA pays attention to this and responded to it March 14. This consultation response relates in particular to the technique of 'layering' used in an online environment. In addition, we expressed our concerns about the practice of financial influencers (finfluencers), especially in the Dutch context.
Support for more guidelines around digitization
We support ESMA's commitment to ensuring optimal investment protection within a digital environment. We think it is important that there should be clarity on the applicability of regulations on techniques used in an online environment, such as 'layering', gamification, nudging and not least on the role of (f)influencers.
Layering
We support the idea that asset managers may use "layering" when providing information to retail investors. Information should be able to be provided in several layers, with the first layer containing the essential information. However, we call on ESMA to specify how detailed that first layer should be. In addition, we believe that information in the PRIIPs KID should also be allowed to be provided via this technique. Finally, we ask for guidance from ESMA on how the layering technique can be applied in future implementation of the European Accessibility Act.
Fincluencers
We stress that finfluencers must comply with the same safeguards and requirements as apply to (MiFID) investment advisors. We are concerned about the increasing influence of finfluencers, also in light of the recent research by 'Wijzer in Geldzaken' published in Money Week 2024. Indeed, the practices of certain finfluencers can have a negative impact on investor confidence. Young people in particular allow their financial situation to be influenced by these finfluencers. We therefore call on ESMA to consider any specifically targeted measures to counter harmful practices by these finfluencers.
