[ParlTrack]

Proposal for a directive
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The Committee on Economic and Monetary Affairs calls on the Committee on Internal Market and Consumer Protection, as the committee responsible, to propose rejection of the Commission proposal.

2022/10/28
Committee: ECON

Dorien ROOKMAKER, Eugen JURZYCA

Proposal for a directive
Recital 3

(3) Within the framework of the internal market, in order to safeguard freedom of choice, a high degree of consumer protection in the area of financial services contracts concluded at a distance is required in order to enhance consumer welfare and confidence in distance selling.

2022/10/28
Committee: ECON

Dorien ROOKMAKER, Eugen JURZYCA

Proposal for a directive
Recital 6

(6) Digitalisation has contributed to market developments that were not foreseen at the time of the adoption of Directive 2002/65/EC. In fact, the rapid technological developments since then have brought significant changes to the financial services market. Although many sector specific acts have been adopted on the Union level, financial services offered to consumers have evolved and diversified considerably. New products have appeared, in particular in the online environment, and their use continues to develop, often in a fast and unpredicted manner. In this regard, the horizontal application of Directive 2002/65/EC remains relevant. The application of Directive 2002/65/EC to consumer financial services not regulated by sector specific Union legislation has meant that, a set of harmonised rules apply to the benefit of consumers and traders. This ‘safety net’ feature, contributes to ensuring a ~~high~~n adequate level of consumer protection while ensuring a level playing field among traders.

2022/10/28
Committee: ECON

Eugen JURZYCA, Dorien ROOKMAKER

Proposal for a directive
Recital 10

(10) While not all the provisions of Directive 2011/83/EU should apply to financial services contracts concluded at a distance due to the specific nature of those services, a number of provisions of Directive 2011/83/EU, such as relevant definitions, rules on additional payments, on enforcement and penalties, should also apply to financial services contracts concluded at a distance. The application of those provisions ensures complementarity between the different types of contracts concluded at a distance. The extension of the application of the rules on penalties of Directive 2011/83/EU will ensure that effective, proportionate and dissuasive fines are imposed on traders responsible for widespread infringements or widespread infringements with a Union dimension.

2022/10/28
Committee: ECON

Dorien ROOKMAKER, Eugen JURZYCA

Proposal for a directive
Recital 11

(11) A dedicated chapter in Directive 2011/83/EU should contain the still relevant and necessary rules of Directive 2002/65/EC, in particular concerning the right to pre-contractual information and the right to withdrawal, ~~and rules ensuring online fairness~~ when financial service contracts are concluded at a distance.

2022/10/28
Committee: ECON

Dorien ROOKMAKER, Eugen JURZYCA

Proposal for a directive
Recital 12

(12) Since distance financial services contracts are most commonly concluded by electronic means, rules on ensuring online fairness when financial services are contracted at a distance should contribute to the achievement of the goals laid down in Article 114 TFEU and Article 38 of the Charter of the Fundamental Rights of the EU. The rule on adequate explanations should ensure added transparency and provide the consumer with the possibility to request human intervention when he or she interacts with the trader through online interfaces, such as a chatbox ~~or similar tools. The trader should be prohibited to deploy measures in his or her online~~, roboadvice, interfac~~e that could distort or impair the consumers’ ability to make a free, autonomous and informed decision or choice~~tive or similar tools.

2022/10/28
Committee: ECON

Dorien ROOKMAKER, Eugen JURZYCA

Proposal for a directive
Recital 13

(13) Certain consumer financial services are governed by specific Union acts, which continue to apply to those financial services. In order to ensure legal certainty and avoid duplication of the obligations, it should be clarified that where another Union act governing specific financial services contains rules on pre-contractual information or on the exercise of the right of withdrawal, only the respective provisions of those other Union acts should apply to those specific consumer financial services unless provided otherwise in those acts. For instance, when Article 14(6) of Directive 2014/17/EU of the European Parliament and of the Council applies, it should be up to the Member State to decide whether to apply either a reflection period or a right of withdrawal to consumer mortgage credit agreements and so the rules on the right of withdrawal laid down in this Directive do not apply. When Article 186 of Directive 2009/138/EC of the European Parliament and of the Council19 applies, the rules concerning the 'cancellation period' laid down in Directive 2009/138/EC apply and not the rules on the right of withdrawal laid down in this Directive and when Article 14(6) of Directive 2014/17/EU of the European Parliament and of the Council20 applies, the rules on the right of withdrawal under this Directive should not apply. Likewise, certain Union acts governing specific financial services21 contain extensive and developed rules designed to ensure that consumers are able to understand the essential characteristics of the proposed contract. Furthermore, certain Union acts governing specific financial services, such as Directive 2014/17/EU on credit agreements for consumers relating to residential immovable property22 , already lay down rules on adequate explanations to be provided by the traders to the consumers with respect to the proposed contract. In order to ensure legal certainty, the rules on adequate explanations set out in this Directive should not apply to financial services falling under Union acts governing specific financial services that contain rules on the information to be provided to the consumer prior to the conclusion of the contract. __________________ 19 Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.2009, p. 1). 20 Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014 on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010 (OJ L 60, 28.2.2014, p. 34). 21 Such as, Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 2019 on a pan- European Personal Pension Product (PEPP) (OJ L 198, 25.7.2019, p. 1), Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349), Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution (OJ L 26, 2.2.2016, p. 19), Directive 2014/92/EU of the European Parliament and of the Council of 23 July 2014 on the comparability of fees related to payment accounts, payment account switching and access to payment accounts with basic features (OJ L 257, 28.8.2014, p. 214) 22 Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014 on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010 (OJ L 60, 28.2.2014, p. 34)

2022/10/28
Committee: ECON

Dorien ROOKMAKER, Eugen JURZYCA

Proposal for a directive
Recital 17

(17) The use of means of distance communications should not lead to an unwarranted restriction on the information provided to the consumer. In the interests of transparency, requirements should be laid down with regard to when the information should be provided to the consumer prior to the conclusion of the distance contract and how that information should reach the consumer. In order to be able to make their decisions in full knowledge of the facts, consumers should receive the information ~~at least one day~~ prior to the conclusion of the distance contract. Only in exceptional cases can the information be provided less than a day before the conclusion of the distance contract for financial service. In case the contract is concluded less than one day before, the trader, within the established timeframe, should be obliged to remind the consumer about the possibility to withdraw from the distance contract for financial service.

2022/10/28
Committee: ECON

Dorien ROOKMAKER, Eugen JURZYCA

Proposal for a directive
Recital 18

(18) The information requirements should be modernised and updated to include, for example, the email address of the trader or other safe electronic means of communication and the information on the risk and reward related to certain consumer financial services. Consumers should also be clearly informed when the price presented to them is personalised on the basis of automated processing.

2022/10/28
Committee: ECON

Dorien ROOKMAKER, Eugen JURZYCA

Proposal for a directive
Recital 20

(20) Certain financial services might pursue an environmental or social objective such as contributing to the fight against climate change or contributing to the reduction of over-indebtedness. In order to be able to make an informed decision, the consumer should also be informed about the particular environmental or social objectives targeted by the financial service.deleted

2022/10/28
Committee: ECON

Dorien ROOKMAKER, Eugen JURZYCA

Proposal for a directive
Recital 25

(25) For distance contracts concluded by electronic means, the trader shcould provide the consumer with the possibility to use a withdrawal button. In order for ensure the effective use of the withdrawal button, the trader should ensure that it is visible and, when the consumer uses the button, the trader should adequately document its use. In order to avoid the unintended use of the withdrawal button by the consumer, the confirmation should be preceded by f.e. the control warning or be accompanied by other safeguard.

2022/10/28
Committee: ECON

Dorien ROOKMAKER, Eugen JURZYCA

Proposal for a directive
Recital 26

(26) Consumers may need assistance in order to decide which financial service is the most appropriate for his or her needs and financial situation. Therefore, ~~Member States should ensure that~~ before the conclusion of a financial service contract at a distance, traders should provide such assistance in relation to the financial services which they offer to the consumer, by providing adequate explanations about the relevant information, including the essential characteristics of the products proposed. The obligation of providing adequate explanations is particularly important when consumers intend to conclude a financial service contract at a distance and the trader provides explanations through online tools. In order to ensure that the consumer understands the effects that the contract may have on his or her economic situation, the consumer should always be able to obtain human intervention on behalf of the trader. The human intervention could be limited, for example, to the opening hours of the trader.

2022/10/28
Committee: ECON

Dorien ROOKMAKER, Eugen JURZYCA

Proposal for a directive
Recital 27

(27) When concluding financial services contracts at a distance, traders should be prohibited to use the structure, design, function or manner of operation of their online interface in a way that could distort or impair consumers’ ability to make a free, autonomous and informed decision or choice.deleted

2022/10/28
Committee: ECON

Dorien ROOKMAKER, Eugen JURZYCA

Proposal for a directive
Article 1 – paragraph 1 – point 1 – point a

Directive 2011/83/EU
Article 3 – paragraph 1b – subparagraph 1

‘(1b) ‘Articles 1 and 2, Article 3(2), (5) and (6), Article 4, Articles 16a to 16e, Article 19, Articles 21 to 23, Article 24(1)~~, (2), (3)~~ and (42) and Articles 25, 26 and 2630a shall apply to distance contracts concluded between a trader and a consumer for the supply of financial services.

2022/10/28
Committee: ECON

Dorien ROOKMAKER, Eugen JURZYCA

Proposal for a directive
Article 1 – paragraph 1 – point 1 – point a

Directive 2011/83/EU
Article 3 – paragraph 1b – subparagraph 2 a (new)

In case there is no initial service agreement but the successive operations or the separate operations of the same nature performed over time are performed between the same contractual parties, Article 16a applies only when the first operation is performed. Where, however, no operation of the same nature is performed for more than one year, the next operation will be deemed to be the first in a new series of operations and, accordingly, Articles 16a shall apply.

2022/10/28
Committee: ECON

Dorien ROOKMAKER, Eugen JURZYCA