Directive 2002/65/EC

Directive 2002/65/EC of the European Parliament and of the Council of 23 September 2002 concerning the distance marketing of consumer financial services and amending Council Directive 90/619/EEC and Directives 97/7/EC and 98/27/EC

Published under Risk Management
Title: Directive 2002/65/EC of the European Parliament and of the Council of 23 September 2002 concerning the distance marketing of consumer financial services and amending Council Directive 90/619/EEC and Directives 97/7/EC and 98/27/EC (the ‘Financial Distance Marketing Directive’)
Source reference: http://eur-lex.europa.eu/LexUriServ/
Topic: Marketing to consumers of consumer financial services
Direct / indirect relevance Direct. The text contains a direct obligation to inform customers of any risks involved in the financial services being offered.
Scope: Directly applicable to all EU Member States
Legal force: EU Directive, requires transposition into national law
Affected sectors: Financial services
Relevant provision(s): Article 3 – Information to the consumer prior to the conclusion of the distance contract

1. In good time before the consumer is bound by any distance contract or offer, he shall be provided with the following information concerning:

(1) the supplier

[…]

(2) the financial service

(a) a description of the main characteristics of the financial service;

(b) the total price to be paid by the consumer to the supplier for the financial service, including all related fees, charges and expenses, and all taxes paid via the supplier or, when an exact price cannot be indicated, the basis for the calculation of the price enabling the consumer to verify it;

(c) where relevant notice indicating that the financial service is related to instruments involving special risks related to their specific features or the operations to be executed or whose price depends on fluctuations in the financial markets outside the supplier's control and that historical performances are no indicators for future performances;

[…]

 

2. The information referred to in paragraph 1, the commercial purpose of which must be made clear, shall be provided in a clear and comprehensible manner in any way appropriate to the means of distance communication used, with due regard, in particular, to the principles of good faith in commercial transactions, and the principles governing the protection of those who are unable, pursuant to the legislation of the Member States, to give their consent, such as minors.

[…]
Relevance to RM/RA: The cited article requires that, as a part of the minimum information to be provided to a consumer prior to concluding a distance financial services contract, the consumer must be clearly and comprehensibly informed of any specific risks related to the service concerned.

 

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