Banks, insurers and asset managers in the European Union would only be allowed to sell funds and other products across the bloc if they could prove to regulators they offer value for money, draft proposals seen by Reuters showed.
The draft proposals, with further changes possible ahead of publication, form part of the bloc's push to build a more autonomous capital market after Brexit, and signal a step change in EU-level retail financial services regulation.
The draft law also calls for the commission to have powers to take "corrective measures" where costs levied on investment funds are not justified or proportionate to the expected returns.