The EU regulator says falling fund fees are improving retail outcomes, but its latest data show structured retail products are growing fast, driven by interest rates and capital protection, while complexity, front-loaded costs and compressed performance scenarios demand closer scrutiny.
Europe’s retail investment market delivered a better year for investors in 2024, but the benefits were uneven as reflected in the retail structured products market. At the end of 2024, structured retail products outstanding across the EU stood at approximately €392 billion In its latest Costs and Performance report , the European Securities and Markets Authority (Esma) highlights a broad decline in fund costs and a rebound in performance across traditional products. Yet the regula