Markku Kaustia appointed member of EU expert group on new regulation for retail investment products
EU is planning legislation according to which investment products marketed to retail investors are required to have so-called key information documents (KIDs) to make it easier for investors to compare products to each other. The KID would have easily accessible information on the risk and cost of the investment, among other things. Most investment vehicles typically used by individuals, such as mutual funds, fall under the new regulation, but some of the insurance-based products are excluded, as are direct investments in stocks and bonds.
The expert group advises the European banking authorities in formulating guidelines on how the legislation is to be implemented. The new legislation will take effect in 2016.