Wider market access should be matched by reforms to investor protection and capital markets
LONDON, Sept. 01, 2026 (GLOBE NEWSWIRE) -- The CFA Institute Research and Policy Center is calling for the European Union to match wider retail access to private markets with reforms that strengthen investor protection, improve the functioning of the retail investment market, and support more integrated capital markets.
A new policy paper published today by the CFA Institute Research and Policy Center, Private Market Investment in the EU: Prudent Access for Retail Investors, examines an increasingly central asset class which could be instrumental in meeting some of Europe's long term investment needs. The revised European Long-Term Investment Fund (ELTIF) defines a new fund format that has already led to a substantial number of new fund offerings. It comes as the EU seeks to channel more investor funds into long-term investment, such as infrastructure or the digital and green energy assets.
The paper concludes that the revised fund format is a welcome step in opening private market investment to a broader range of investors, but argues that new investment products alone will not achieve the wider objectives of deeper capital markets or greater retail participation. Arguing that without further reform, ELTIFs are unlikely to deliver on those wider ambitions.
Alexander Lehmann, Director, Capital Markets Policy (EU) at CFA Institute, comments:
"European households have substantial savings, yet only a small proportion of that capital is invested in capital market instruments. Europe has an opportunity to put more of those savings to work and into long-term investment projects. The revised ELTIF framework is a welcome step, but it should be seen as one element of a wider programme of capital markets reform."
The paper makes several recommendations so that private asset funds, which are the traditional preserve of institutional investors, can also be offered to suitably experienced retail investors. Further reforms could include adapting investor suitability requirements for private market investments or improving transparency around costs and liquidity. Indirect access through pension funds, whose managers may be better placed to oversee fund manager conduct, may be the more sensible immediate option.
Alexander Lehmann added:
"Wider retail access to private markets should be matched by strong investor protection and a retail investment framework that supports informed investment decisions. Those reforms will be just as important if retail access to private markets is to develop successfully."
Private Market Investment in the EU: Prudent Access for Retail Investors forms part of a continuing series from the CFA Institute Research and Policy Center examining private markets. To download, visit: https://bit.ly/4h63ygX.
To speak with the report's author, contact PR@cfainstitute.org
About the CFA Institute Research and Policy Center
The CFA Institute Research and Policy Center brings together CFA Institute expertise along with a diverse, cross-disciplinary community of experts working collaboratively to address complex problems. Firmly anchored to the CFA Institute tenets of intellectual independence, impartiality, and technical rigor, its research, advocacy and standards work seeks to transform research insights into actions that strengthen markets, advance ethics and improve investor outcomes for the ultimate benefit of society. It is organized around four themes: capital markets, technology, the future of the investment industry, and sustainability.
About CFA Institute
As the global association of investment professionals, CFA Institute sets the standard for professional excellence and credentials. We champion ethical behavior in investment markets and serve as the leading source of learning and research for the investment industry. We believe in fostering an environment where investors' interests come first, markets function at their best, and economies grow. With more than 200,000 charterholders worldwide across 160 markets, CFA Institute has 8 offices and 157 local societies. Find us at www.cfainstitute.org or follow us on LinkedIn and subscribe on YouTube.
