The Relation Between the Consumer Rights Directive proposal and the Area of Financial Services

15-11-2010

The scope of application of the proposed directive to financial services is not entirely clear when it comes to investment services and to information obligations in offpremises contracts. The relationship between investment services, which come under the law related to off-premises contracts, and financial services whose price depends on fluctuations in the financial market outside the trader's control, which are exempted from the law related to off-premises contracts, is unclear and should be clarified. The interaction between the proposed Consumer Rights Directive and other EU legislation on financial services is not optimal in the area of off-premises contracts. Some overlaps would occur, as well as some regulatory gaps. In the area of unfair contract terms, no problems are envisaged. Overlaps between the rules on off-premises contracts and specific legislation on financial services may occur with the information obligations of the Payment Services Directive 20007/64/EC. Regulatory gaps may occur with respect to non-life insurance, where there will be few information obligations and no right of withdrawal. Regulation of issues concerning off-premises contracts and unfair contract terms that relate to financial services contracts should occur in the general framework of the proposed Consumer Rights Directive.

The scope of application of the proposed directive to financial services is not entirely clear when it comes to investment services and to information obligations in offpremises contracts. The relationship between investment services, which come under the law related to off-premises contracts, and financial services whose price depends on fluctuations in the financial market outside the trader's control, which are exempted from the law related to off-premises contracts, is unclear and should be clarified. The interaction between the proposed Consumer Rights Directive and other EU legislation on financial services is not optimal in the area of off-premises contracts. Some overlaps would occur, as well as some regulatory gaps. In the area of unfair contract terms, no problems are envisaged. Overlaps between the rules on off-premises contracts and specific legislation on financial services may occur with the information obligations of the Payment Services Directive 20007/64/EC. Regulatory gaps may occur with respect to non-life insurance, where there will be few information obligations and no right of withdrawal. Regulation of issues concerning off-premises contracts and unfair contract terms that relate to financial services contracts should occur in the general framework of the proposed Consumer Rights Directive.

Externí autor

Frank Alleweldt (Project director), Peter Rott (Lead author), Christian Twigg-Flesner (Second reader) and Senda Kara