THE 3RD EDITION OF THE "FINANCING THROUGH THE STOCK MARKET" CONFERENCE / ANDRE CAPPON, CBM GROUP: "Romania must stimulate retail investments on the capital market"

When a country is poor and affected by corruption, its markets don't have credibility among retail investors, and as a result, individuals place their savings in liquid investments, says Andre Cappon, the president of consulting firm "The CBM Group" Inc. of New York. In his opinion, right now, the challenge that Romania is faced with is increasing the volume of household (retail) investments in the stock markets, as most of their savings are in cash and bank accounts.

According to the "CBM Group" representative, in order to accelerate retail investments on the capital market, measures such as the more friendly taxation of investment income are needed, the application of a credible program for attracting investors, the development of the optional pensions system (3rd pillar), the creation of a competitive asset management industry, and low cost investment solutions (passive funds, ETFs).

In order to improve the access of retail investors to the capital market, the CBM group suggests the creation of a well-regulated and credible brokerage industry, increasing the credibility of the financial consultant profession and the application of a program of financial education of investors.

Currently, the investments of households in financial assets - as a proportion of the GDP - amount to only 36% in Romania, compared to 275% in the US or 273% in Great Britain, and 262% in Canada, respectively, according to "CBM Group". The company's data also states that in Germany, the ratio is 183%, in Italy -178%, in France -155%, and in Spain - 132%.