FESE Policy Considerations on the European Blueprint for Savings & Investment Accounts

FESE welcomes the European Commission’s initiative to establish a European Blueprint for Savings and Investment Accounts as part of the broader strategy on the Savings and Investments Union (SIU). We also welcome the recently adopted ECON Own-Initiative report on the Capital Markets Union that supports the idea of creating an EU savings investment account or a label at EU level. This initiative has the potential to enhance retail investor participation, deepen market liquidity and strengthen the EU’s capital markets. FESE recommends the following features, which we believe are essential for the successful implementation of this initiative.

1.Account-based framework with flexible choice of financial instruments

• The European Blueprint should outline the essential features of savings and investment accounts, designed as envelope-like structures that offer a flexible choice of financial instruments — including shares traded on multilateral platforms, exchange-traded funds (ETFs), European Long Term Investment Funds (ELTIFs), as well as sovereign and exchange-traded corporate bonds.

2. Traded on transparent multilateral markets

• Trading of financial instruments offered through the savings and investment accounts should be conducted on multilateral trading platforms over bilateral execution to uphold transparency and investor protection.

3. Favourable tax treatment

• An advantageous and simple tax treatment is a necessary factor to ensure the success of the account model. However, any incentives must be carefully considered to respect national regulations.

4. Government subsidies

• The account should provide the possibility for Member States to provide further incentives by granting subsidies.

5. Allocation to EU productive investments

• To ensure EU businesses and the economy benefit from this capital, incentives for EU-based investments may be considered. However, the account should not be restricted solely to EU financial instruments as a flexible structure will enhance its attractiveness across different investor profiles.

6. Broad accessibility

• The account should not have any minimum investment requirement to make it accessible to a wide range of European households and ensure meaningful retail participation.

7. Simplification of investor journey

• The Blueprint should promote the simplification of the investors’ journey, avoiding any lengthy onboarding and administrative procedures.

8. Minimum holding period

• It may be worth exploring a coherent minimum holding period to encourage long-term savings. However, it should not be a mandatory requirement for all Member States, ensuring the framework remains flexible.

9. Accompanying campaign for financial education

• To ensure that investors are well informed about the opportunities and the potential of the Savings and Investment Accounts, the EU should launch financial education campaigns and offer comprehensible information packages.

FESE also shared its views on the European Blueprint in response to the Commission’s Call for Evidence (CfE) on the Recommendation on savings and investment accounts (here).