Commission proposes new rules to protect and empower retail investors in the EU           

The European Commission has adopted a Retail Investment Package that places the consumers’ interests at the centre of retail investing. The aim is to empower retail investors (“consumer” investors) to make investment decisions that are aligned with their needs and preferences, ensuring that they are treated fairly and duly protected. This will enhance retail investors’ trust and confidence to safely invest in their future and take full advantage of the EU’s Capital Markets Union. 

The package aims to improve the investment experience for retail investors through a range of measures. It focuses on providing meaningful and standardized information to investors, increasing transparency and comparability of costs, and ensuring that retail clients receive clear information about the performance of their investments. The package also addresses conflicts of interest in the distribution of investment products, protects investors from misleading marketing practices, and maintains high standards for financial advisors’ qualifications. It encourages financial literacy measures, reduces administrative burdens, and enhances supervisory cooperation to ensure effective application of rules and combat fraud. Overall, the package seeks to empower retail investors, enhance their protection, and promote a fair and transparent investment environment. 

The Commodity Futures Trading Commission (CFTC) has taken legal action against five individuals operating as a firm called Icomtech for fraudulent activities related to bitcoin and other digital asset commodities. The defendants are accused of soliciting hundreds of thousands of dollars from over 170 individuals across the United States and other countries, promising to trade on their behalf and generate substantial profits. The complaint further alleges that the defendants primarily targeted Spanish-speaking communities in their scheme. Instead of trading as promised, the defendants misappropriated the funds, leading to significant financial losses for some customers. The CFTC is seeking restitution, disgorgement, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against future violations of the Commodity Exchange Act (CEA) and CFTC regulations.