Proposal for a Directive of the European Parliament and of the Council amending Directive 2011/83/EU regarding financial services contracts concluded at a distance
Published on 29th Jul 2022
The proposal aims to simplify and modernize the legislative framework by repealing Directive 2002/65/EC (on distance marketing of consumer financial services), while promoting the provision of financial services in the internal market and ensuring a high level of consumer protection (the "Proposed Directive").
Directive 2002/65/EC (the "Directive") has been subject to a thorough evaluation by the European Commission, calling into question the effectiveness of the Directive itself in ensuring a high level of consumer protection and promoting the cross-border provision of financial services provided at a distance.
In this context, the proposed Directive is created to modernize and simplify the legislative framework on the distance marketing of financial services by revoking the Directive, in the context of a steady and increasing digitalization of services, pronounced during the Covid-19 pandemic. This is all intended to be achieved:
- ensuring full harmonization for the rules for consumer financial services concluded at a distance;
- establishing rules on what, when, and how pre-contractual information is to be provided, thus adapting these rules fit for the digital age;
- facilitating the exercise the right of withdrawal;
- ensuring online fairness;
- strengthening the rules on enforcing the provisions on financial services contracted at a distance.
The Proposed Directive also includes the repeal of the Directive 2002/65/CE, but maintaining Directive 2011/83/EU (which deals with consumer rights and rules) as the appropriate regulatory instrument, with the amendments that are projected in the Proposed Directive.
In the light of the above, the Proposed Directive incorporate (i) a series of information requirements for financial services concluded at a distance intended for consumers, such as the identity and main business of the trader, the geographical address of the trader's establishment or a description of the main characteristics of the financial service, among others; (ii) a right of withdrawal for certain consumer contracts concluded at a distance, in favour of the consumer; (iii) the regulation of payment for the service that has actually been provided prior to withdrawal; and (iv) additional protection in relation to the online interfaces.
The Proposed Directive shall be transposed by the Member States within 24 months after the adoption of the same.