On Friday, the executive EU Commission formulated several recommendations, including a revision of the MiFID securities law.
The revision of the law empowers national regulators to take “timely and effective action” against misleading marketing practices.
The law will also include a definition of what constitutes marketing communication, clarifying the inclusion of online advertising.
According to Verena Ross, Chair of the European Securities and Markets Authority (ESMA), further measures will also be taken to counter aggressive marketing and ensure that companies meet the requirements properly.
The EU’s executive European Commission will set out a strategy for retail investors to keep pace with rapid technological change, allowing people to buy shares or bitcoin using a simple process on their smartphone.
“I believe these are fundamental shifts in how the market works and who engages in the market. I think the downside of some of that is that it entices a lot of speculation and a kind of gamification of the way retail investors engage in financial markets,” Ross said.