ESMA published the results of its study of the EU market in structured retail products, from an investor protection perspective. The results were published as a part of the ESMA report on trends, risks, and vulnerabilities in EU. The research breaks down the EU market geographically into national retail markets and found a high degree of heterogeneity in the types of product sold.
The report identified that, although a wide array of structured products are available to retail investors across EU, each national market is concentrated around a small number of common types—namely capital protection products, yield enhancement products, and participation products. The analysis was performed both at an EU-wide level and also specifically in the French, German, and Italian retail markets. The analysis suggests that the search for yield has been a common driver of several changes in the distribution of product types. These products are a significant vehicle for household savings, although they remain complex and the net performance warrants a closer examination.
Keywords: Europe, EU, Securities, Investor Protection, Structured Products, TRV Reports, ESMA
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