High costs for investors in EU capital markets

Question for written answer  E-002619/2022
to the Commission
Rule 138
Eugen Jurzyca (ECR)

A report by the European Securities and Markets Authority (ESMA)[1] has concluded that the costs of investing for retail investors in the EU remain high.

Fees for EU equity investment funds (UCITS) are close to 2% per annum, while fees are around 1.5% per annum for UCITS bond funds. These are considerably more expensive than US investment funds, where fees are typically up to 1% per annum. Fees for UCITS exchange-traded funds (ETFs) are below 1% per annum[2]. However, fees are considerably lower for US ETFs[3], with the cheapest having fees below 0.1%.

• 1.Does the Commission know the reasons for the price difference between comparable investment products in the US and the EU?
• 2.What steps will the Commission take to reduce investment product fees in the EU?

• [1] ‘In the report ESMA finds that the costs of investing in key financial products, such as UCITS funds, retail alternative funds, and structured investment products (SRPs) remain high and diminish the investment outcome for final investors.’ https://www.esma.europa.eu/press-news/esma-news/retail-clients-continue-lose-out-due-high-investment-products-costs
• [2] https://www.broadridge.com/report/us-mutual-funds-expense-trends
• [3] https://etfdb.com/compare/lowest-expense-ratio/