EFAMA calls for EU-wide adoption of savings and investment accounts

EFAMA, the European investment management industry body, has said savings and investment accounts (SIAs) should be adopted by all member states, although it does not back the introduction of EU-level legislation to achieve this.

As part of its Savings and Investments Union (SIU) strategy, the Commission wants to propose a European blueprint for savings and investment accounts based on best practices from member states. A recommendation on establishing SIAs is expected later this year.

Responding to the European Commission’s call for evidence on SIAs, EFAMA said the experience of SIAs in France, Italy, Sweden, the UK and other countries outside the EU “demonstrates that well-designed, nationally tailored regulations can significantly increase savers’ participation in capital markets”.

It said factors such as ease of access and tax incentives were key to the success of such initiatives, and that SIAs should also have other key features, such as:

• incentives that discourage early withdrawals;
• a broad range of assets (listed but also non-listed) should be eligible, including all UCITS, ELTIFs, and retail AIFs; and
• a sufficiently large deposit limit and options for both regular saving and investing larger lump sums.

On tax treatment, EFAMA said that measures that had proven effective in member states included reduced tax rates and equal tax treatment of comparable investments/investors, and tax exemptions on income (dividends, capital gains, etc.) from SIAs.

“SIAs can make a real difference in building the foundations of a true Savings and Investments Union,” said Kimon Argyropoulos, regulatory policy adviser at EFAMA.

“By making it easier and more attractive for citizens to invest over the long term, SIAs can bridge the gap between household savings and productive investment in the EU economy. We welcome the European Commission’s initiative and urge member states to seize this opportunity to empower retail investors and channel capital toward economic growth.”

In its consultation feedback, PensionsEurope cautioned that the Commission’s drive to promote standardised SIAs could inadvertently weaken well-functioning occupational and personal pension systems, potentially undermining long-term retirement outcomes across the EU.

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