Factors like ease of access and tax incentives are key to success
EFAMA, the voice of the European investment management industry, emphasises the importance of fostering a stronger savings and investment culture across the EU. In our response to the European Commission’s call for evidence on Savings and Investment Accounts (SIAs), we strongly support initiatives that encourage retail participation in capital markets.
The experience of SIAs in France, Italy, Sweden, the UK, and other countries outside Europe demonstrates that well-designed, nationally tailored regulations can significantly increase savers’ participation in capital markets. While we do not support the introduction of EU-level legislation on SIAs, we encourage all Member States to introduce such accounts, where they are not yet available.
The following key features should be considered:
SIAs should promote a long-term perspective through incentives that discourage early withdrawals.
A broad range of assets(listed but also non-listed) should be eligible, including all UCITS, ELTIFs, and retail AIFs.
SIAs should establish a sufficiently large deposit limit and include options for both regular saving and investing larger lump sums.
They should be easy to access across all available distribution channels, with simple onboarding and no additional MiFID appropriateness/suitability tests.
Account structures should encourage regular savings, making it easier to develop an investment habit.
Tax treatment recommendations:
Attractive and simple national tax incentives are critical to effectively counteract the common tendency to postpone retirement savings decisions and encourage widespread adoption of SIAs. Measures that have proven effective in Member States include:
Reduced tax rates and equal tax treatment of comparable investments/investors.
Tax exemptions on income (dividends, capital gains, etc.) from SIAs, including from inheritance tax when the investment has been held for at least 5 years (e.g. Italy).
Simple tax reporting that is aligned with other financial products.
“Relief at source” and mechanisms to eliminate double taxation on dividends, using domestic law or Double Tax Treaties.
Finally, it will be important to support the introduction of SIAs with targeted public information campaigns to explain the importance, benefits, and risks – helping citizens make informed long-term financial decisions.
Kimon Argyropoulos, Regulatory Policy Advisor at EFAMA, commented: “SIAs can makea real difference in building the foundations of a true Savings and Investments Union. By making it easier and more attractive for citizens to invest over the long term, SIAs can bridge the gap between household savings and productive investment in the EU economy. We welcome the European Commission’s initiative and urge Member States to seize this opportunity to empower retail investors and channel capital toward economic growth.”
António Frade Correia, Senior Tax Advisor at EFAMA, commented: "Attractive and simple national tax incentives are crucial to encourage the adoption of Savings and Investment Accounts. Effective measures include reduced tax rates, equal treatment for comparable investments, tax exemptions on income from SIAs, and simple tax reporting. Additionally,'relief at source' mechanisms to eliminate double taxation on dividends are essential."
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Notes to Editors
Read our paper on encouraging retail investment in the EU here.
For further information, please contact:
Hayley McEwen
Head of communications and membership development
