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
related
May 4, 2023
ESBG responds to the Commission’s consultation on its Taxonomy Environmental Delegated Act
On 3 May, ESBG responded to the Commission’s consultation on its new set of EU taxonomy criteria for economic activities that
April 12, 2023
ESBG revises its position paper on the CSDDD in accordance with the recent negotiations
Given the developments of the recent political negotiations, ESBG has decided to update its position paper on the Corporate Sustainability Due Diligence Directive (CSDDD)
February 21, 2023
ESBG responded to the ESMA consultation about the use of ESG terms in funds’ names
On 17 February, ESBG submitted its response to the ESMA consultation about the use of ESG terms in funds’ names
February 3, 2023
Advocating on the EU deforestation regulation
What lessons can be learnt from a French diplomat from the XIX century?
January 11, 2023
ESBG responds to the ESAs call for evidence on greenwashing
Therefore, in the interest of customers, banks, saving banks and issuers of financial products, ESBG
October 5, 2022
Joint letter to Commissioner McGuinness on the EFRAG consultation regarding its first set of draft ESRSs
On 27 September, the ESBG, together with the European Banking Federation (EBF), the European Association of Co-operative Banks (EACB), Insurance Europe, Accountancy Europe, Business Europe and…
September 9, 2022
ESBG response to the EFRAG consultation on its first set of draft ESRSs calls to ensure levelled global playing field
In its response to the European Financial Reporting Advisory Group (EFRAG) public consultation on the first set of Draft EU Sustainability Reporting Standards (ESRSs), the European Savings and Retail…
September 7, 2022
EU Taxonomy minimum safeguards: Criteria for the application of external checks should be further defined
The European Savings and Retail Banking Group submitted its final response to the Platform for Sustainable Finance (PSF) consultation on its draft report on minimum safeguards (MS). In its response,…
August 3, 2022
International Sustainability Standards Board consultation on Sustainability Disclosures
The International Sustainability Standards Board (ISSB) has been established at COP26 with the purpose of developing a comprehensive global baseline of sustainability disclosures for the capital…
July 8, 2022
World savings and retail banks call for harmonised taxonomies on sustainable finance
The World Savings and Retail Banking Institute (WSBI) called today on policymakers for the harmonisation of taxonomies on sustainable finance. At the end of the 26th WSBI World Congress, the…