Paris, Friday 14 September 2018 – This morning, during a seminar hosted by Amundi, one of its founding members, the European Savings Institute (OEE), whose mission is to promote academic research on savings in Europe, presented the results of three empirical studies centered on the relationship between answers to MiFID questionnaires, actual trading behavior of retail investors, and the usage of professional advice by the later. The three papers use two databases of retail investors from which are known, not only the answers of investors to MiFID questionnaires, but also trades and portfolios of these investors over time. These academic works have been funded by the OEE in the context of its annual call for tenders.
Christian Gollier, the Chairman of the OEE Scientific Committee said “the OEE was very happy to assist such a strong academic team in conducting empirical studies that should prove to be very useful for both the regulators and practitioners”. He added that “OEE seminars were always a great opportunity for academics, industry participants and regulators to exchange their point of view”.
The main findings of the studies are the following:
- MiFID questionnaires answers relative to attitudes towards risk and towards losses are strong determinants of stock market participation.
- Investors who answer the Suitability test in order to get additional advice, reveal their “appetite for information”, and tend to invest “smarter” than others.
- Investors who report high level of financial literacy in the questionnaires invest “smarter”.
Marie-Hélène Broihanne, Professor at EM Strasbourg Business School and one of the authors of these papers, who presented the academic results said: “Although MiFID questionnaires have to be improved in their content and design, they allow to gather useful information”.
The presentation was followed by a round table chaired by Marie Brière, Head of Investor Research Center at Amundi and Affiliate Professor at Paris Dauphine University. Participants of the round table included Bernard Agulhon, Head of Regulatory Affairs at Amundi, Claire Castanet, Director of Investor Relations at the French AMF and Dorothée Sauloup, Global Head of Product Management at AXA IM. Marie Brière noted that : “10 years after the introduction of MiIFID 1, and the January 2018 entry into force of MIF2, it is particularly opportune to take stock of the improvement of customer knowledge allowed by the elaboration of the MiFID questionnaires, their impact on financial advice and the portfolio choices of individuals”.
The full report and the presentation are available on the OEE website.
About the OEE
The Observatoire de l’Epargne Européenne (OEE) is a non-profit association chaired by Jacques de Larosière. OEE’s mission is to promote research on savings in Europe, in order to better understand to role played by savings in economic growth and inform the public debate.
Every year, the OEE and its Scientific Committee, chaired by Christian Gollier, are selecting, through public tenders, prestigious academic teams to conduct studies on topics selected by its members. The works are discussed with professionals during seminars and conferences.
Since its creation in 1999, the OEE has conducted or supported more than 50 studies on savings, both descriptive and theoretical, and has put together a unique European statistical database.
Contact :
Grégoire Naacke
Director
+33 (0)6 17 87 26 95
g.naacke@oee.fr
www.oee.fr