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Supervisory perspective · digital investor protection

What supervisors are examining in consumer protection

Investors now discover financial products through apps, social media, newsletters and partner sites. Supervisors increasingly examine the entire journey: from first information, through the design of the decision, to the click on “Trade”.

How to read the sources: The starting point is ESMA’s discussion paper of 14 December 2023 (ESMA35-43-3682). It presents observations, proposals and questions; its proposals are not themselves binding law. Later developments through September 2026 are identified separately below.

01 / Information people can use

ESMA examines how mandatory digital information could become easier to understand. Layering distributes complex information across connected levels: essential points first, technical detail afterwards. The first layer must not bury important risks behind links. ESMA identifies provider and product type, principal risks and benefits, required warnings and costs as possible core information.

Links should describe the detail that follows, lead directly to it and make it easy to return. ESMA also suggests plain language, mobile readability, tests with different users, visual aids and information that can be saved. An attractive graphic does not replace an explanation of its assumptions.

For product teams

A short first layer helps only when risks and costs are as visible as benefits and actions. The recommendations on structure and vital information are discussion paper proposals, not a new universal mandatory checklist.

Source: ESMA35-43-3682, pp. 11–15.

02 / When information becomes distribution

ESMA does not treat marketing as banners alone. Blogs, market newsletters, videos, webinars and apparently neutral education can form part of distribution. What matters is whether they steer users towards a particular financial product, provider or transaction. The paper describes how repeated targeting can turn an informational journey into a sales funnel.

Product clarity

Marketing a CFD on a share must make clear that it is a derivative. A screen that visually equates a share, ETF, structured product and CFD on the same underlying may create false expectations. Regulated and unregulated offerings should also be distinguishable.

Affiliates, comparisons and finfluencers

The paper considers payment for clicks, leads, accounts or transactions, paid placements in comparisons and sponsored posts. It calls for transparency about commercial relationships and balanced presentation. For appointed partners, ESMA emphasises the firm’s responsibility for selection, instructions and ongoing oversight. National affiliate rules differ; examples from several states do not establish one EU authorisation category.

Audience and effects

For complex, risky products, ESMA asks whether broad advertising, retargeting and click based success measures align with the target market and customers’ interests. The paper also points to complaints and whether acquired customers belong to the target market.

Source: ESMA35-43-3682, pp. 15–28. Existing rules requiring fair, clear and non misleading information should be distinguished from these proposals.

03 / Interface design shapes decisions

Social feeds, trader rankings, trending categories, points, badges and push notifications direct attention. ESMA asks whether these features help investors understand or mainly encourage more frequent and riskier transactions. The paper also considers social validation of trades and possible herd effects.

Gamification and social trading

Rewards directly after a trade, leaderboards and frequent login prompts may increase trading frequency. ESMA discusses safeguards against excessive trading and alignment with long term investor interests. The regulatory classification of copy trading is a separate question; this section concerns the design and effect of social features.

Choice architecture and push notifications

Order, defaults, chart periods, preset leverage, order size and the number of clicks to execution can change behaviour. A chart limited to one day’s rise conveys a different impression from a longer view. ESMA describes a reviewable order summary and genuine confirmation as possible safeguards. For push messages about volatile securities, it asks about audience, timing and likely effect.

Dark patterns

Hidden fees, preselected options or an exit markedly harder than entry illustrate problematic design. The paper also points to consumer law developments for financial services concluded online. The applicable law must be assessed for each product.

Design as a governance question

Document more than whether a feature works: which decision it makes more likely, which customers it reaches and whether it changes trading frequency or risk exposure.

Source: ESMA35-43-3682, pp. 28–39.

04 / Developments since the discussion paper

December 2023 · Starting point

The discussion paper opened a consultation on digital information, marketing, affiliates and app design. The consultation closed in March 2024.

December 2025 · Retail Investment Strategy

Council and Parliament announced a political agreement on reforms addressing more visible product information, costs, marketing and finfluencers, among other matters. The announcement still envisaged technical finalisation and later implementation deadlines; it does not by itself establish that each rule has entered into force.

March 2026 · Investor journey

ESMA published findings from a separate consultation on the retail investor journey. It focuses on information overload, digital disclosures and workable suitability and appropriateness assessments; consumer testing is intended to inform further work.

September 2026 · Supervisory priority

ESMA announced “Innovation with Investor Safeguards” as a strategic supervisory priority from 2027. It covers AI, tokenisation, governance, data quality and customer outcomes, among other issues. This sets a priority; it does not amend the discussion paper.

05 / Five questions for the next product review

  1. What can a new user see on the first screen about product type, cost, risk and the commercial sender?
  2. Where does information or education turn into a directed path towards account opening or an order?
  3. Who creates and oversees paid content, comparisons and affiliate communication?
  4. Which defaults, rankings, push messages and rewards measurably influence trading decisions?
  5. Can users save information, review decisions and leave the process without unreasonable obstacles?

These questions complement the activity assessment in the self assessment. They do not replace individual analysis under MiFID II, WpIG, WpHG, market abuse or consumer law.

Sources and status

Editorial status: 24 September 2026. The paper contains illustrative examples and proposals for discussion. This page paraphrases them and identifies our own inferences as review questions.