Directive 23/2673/EU Addresses Risks From Mobile Investment Applications

The use of mobile phone applications for remote investment may increase the risk of negative economic outcomes for consumers and markets and should be addressed by legislators to prevent a systemic crisis. The GameStop saga is a clear example of these potential negative outcomes. This article examines how mobile phone distance investment applications can influence consumers’ choices regarding financial products as opposed to professional investment service providers. The investigation is based on several pieces of research. Therefore, this analysis will examine the current legal provisions of Directive 2002/65/EC that regulate the use of distance tools for financial contract conclusion. The assessment will focus on identifying any shortcomings in dealing with new tools and practices. Finally, attention will be paid to the new rules outlined in Directive 23/2673/EU of 22 November 2023. The aim of these rules is to protect consumers from negative and misleading nudges in their investment activities. In the final section of the article, we will examine whether these new provisions can safeguard the interests of consumers and markets.