On 25 May, ESBG, in cooperation with other financial service associations including the European Banking Federation, Eurofinas, Leaseurope, European Association of Co-operative Banks and the European Mortgage Federation - European Covered Bond Council, issued a joint statement in the context of the negotiations of the Distance Marketing in Financial Services Directive (DMFSD).
ESBG, with the co-signatories expressed support for high-level consumer protection and the preservation of the “safety net” feature in the proposed Directive. However, we also identified several issues which should be of particular consideration.
We specifically voiced our apprehensions as regards the potential application of DMFSD rules to financial services already governed by EU financial legislation, which do not provide for the provisions for the right of withdrawal, pre-contractual information, or adequate explanations. This application could result in confusion and legal uncertainty, which goes against the EU better regulation principles.
In addition, the co-authors of the statement call for the removal of the reminder of the right of withdrawal. Such an obligation has no added value since the possibility of withdrawal is already mentioned in the pre-contractual information and the contract itself.
We raised our concerns about the unequal treatment between financial services concluded at a distance on an occasional basis and those provided by banks. The fellow signatories argue that some provisions may favour FinTech companies.
Also, the co-signed statement recommends deleting provisions related to online advertising in the DMFSD, as this subject is already covered by the Unfair Commercial Practices Directive.
Your Contact:
Marta Kajda-Legal Advisor ESBG
e.: marta.kajda@wsbi-esbg.org
t.:+32 2 211 11 69
