EU Member States and the asset management industry have a key role to play going forward.
If policymakers want to deliver on the Savings & Investment Union objectives, boost retail investing in Europe and close the pension gap, they need to improve financial literacy, simplify the investment process and create strong incentives. The European Commission’s Financial Literacy Strategy and Recommendations for national savings & investment accounts (SIAs), released today, are a great start in moving the dial in these important areas. Asset managers will have a pivotal role to play, both in the success of national SIAs and financial literacy initiatives.
Countries where SIAs already exist have proven that these structures make a big difference in increasing retail participation in capital markets. Key highlights of the Recommendations on SIAs include:
A strong emphasis on simplicity: Clear and intuitive account designs, no account-specific suitability assessments and simple compliance, will contribute to a simpler investment journey.
Inclusion of UCITS as eligible assets: UCITS offer immediate diversification benefits and robust investor protection, helping make SIAs attractive to a broad range of retail investors.
No geographical restrictions for investment: Fewer restrictions will lead to more investor choice and better diversified portfolios, encouraging greater retail participation.
Flexibility for Member States: By issuing a Recommendation rather than a Regulation, the Commission allows Member States to implement SIAs in ways tailored to national markets while promoting the sharing of best practices.
Simple tax compliance and effective tax incentives: Urging Member States to include simplified processes like automated tax reporting, and the most favourable tax treatment possible, are powerful tools to boost retail investing.
While the eligibility of ELTIFs is left to Member States, EFAMA is optimistic that many will recognise their diversification and risk/return advantages and consider them eligible, further enhancing the long-term investment potential of SIAs.
Financial literacy helps EU citizens understand how to manage their money, what products and options are available, and most importantly, how to adequately prepare for their retirement. Important elements included in the financial literacy strategy are:
Coordination with relevant stakeholders: In 2026, the European Commission will start holding thematic meetings and workshops on financial education to foster collaboration across industries, including the development of a voluntary EU code of conduct for stakeholders by Q1 2027.
Targeted communications across the EU: An EU-wide campaign will promote budgeting, retirement planning, and investment, including the creation of “financial literacy ambassadors”.
Measuring progress and impact: A 2027 Eurobarometer survey and European Semester integration will track progress, with evaluation tools like the Learning Lab.
Increased funding for research: A dedicated website to streamline access to EU funding (e.g., Erasmus+, TSI) is expected by the end of the year, supporting innovative programs.
The goal is not to turn ordinary citizens into financial analysts however, and there will always be a need for high-quality, accessible, and affordable professional advice.
Tanguy van de Werve, EFAMA Director General, commented: “EFAMA has consistently emphasized that effective tax incentives are essential for attracting retail investors. By explicitly linking Savings and Investment Accounts to favourable tax treatment and keeping the investor journey simple and accessible, the Commission has provided practical guidance that, if followed, will genuinely help make investing more attractive. Investor education is also a crucial component, alongside a straightforward customer journey and decision-useful disclosures. EFAMA and the asset management industry are keen on collaborating with the Commission on its educational initiatives to maximize the positive impact for European citizens.”
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Notes to Editors
Access the European Commission’s Financial Literacy Strategy and Recommendations on SIAs here.
Read EFAMA’s recommendations on financial literacy here and on SIAs here.
For further information, please contact:
Hayley McEwen
Head of communications and membership development
