EU reaches an agreement to protect small investors and regulate "finfluencers"

The Parliament and the Council agree on new rules to ensure that financial advice meets the needs of clients and to combat misleading online promotion.

Brussels, December 18, 2025 – Negotiators from the European Parliament and the Council have reached a provisional agreement on the new Retail Investment Strategy (RIS). The agreement introduces stricter rules to ensure that retail clients are offered high-quality financial products with a fair quality-price ratio, while simultaneously addressing the growing influence of social networks on investment decisions.

In short

Investment firms will now be responsible for the "finfluencers" they engage, requiring written agreements and strict oversight to prevent misleading sales tactics targeting vulnerable young clients.

Financial advisors must ensure that products are strictly suitable for the specific needs of the client, and a new assessment of the "quality-price ratio" will prevent the market entry of overvalued products.

The legislation requires member states to promote financial education and to transition information disclosure to a "digital implicitly" format to better serve modern investors.

The core of the agreement focuses on the quality of advice and products. Negotiators agreed that both financial and insurance advisors must assess suitability based on the client's ability to bear losses, risk tolerance, and sustainability preferences. To ensure that consumers are not exploited, the European Securities and Markets Authority (ESMA) and its insurance counterpart (EIOPA) will develop benchmark criteria for oversight. These will allow national authorities to verify whether investment products offer real value compared to a group of similar instruments.

A significant part of the agreement addresses the digital era. Recognizing that young investors are vulnerable to misinformation, the rules require investment firms to maintain full control over the "finfluencers" promoting their products. Additionally, updated rules on incentives – commissions paid between firms – introduce a new test to ensure that such payments genuinely enhance service quality and do not create conflicts of interest.

MEP rapporteur Stéphanie Yon-Courtin described the agreement as a major step towards a "Union of Economies and Investments." She emphasized that the rules link consumer protection with business growth, ensuring that no one profits from selling risky financial products without being held accountable. The provisional agreement must now be officially approved by both the Parliament and the Council before it can come into force.

https://2eu.brussels/ro/stiri/ue-ajunge-la-un-acord-pentru-protejarea-micilor-investitori-si-reglementarea-finfluencerilor