European legislative developments in the field of consumer credit ALB National Conference 15...
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European legislative developments in the field of consumer credit ALB National Conference 15 November 2012, Bucharest
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Transcript of European legislative developments in the field of consumer credit ALB National Conference 15...
European legislative developments in
the field of consumer credit ALB National Conference
15 November 2012, Bucharest
About Eurofinas
The European Federation of Finance House Associations
Represents 17 Member Associations bringing together more than 600 finance and credit institutions involved in
Consumer Credit Lending
• Personal Consumption • Motor Finance
Mortgage Credit Lending Industrial Equipment Finance
Activities of the Federation
Where to Next?
Mortgage Credit Directive (MCD)
Review of the IMD
Directive on ADR & ODR
EU Data Protection Reform (DPR)
CRD IV Package CCD Review
Shadow Banking (SB)
Review of the AML Directive
Trialogue Procedure 1st Reading Preliminary Work
Main issues at stake
Scope, definition of liquid assets, retail exposures
Scope, consistence with CCD, credit intermediaries
Trade bodies’ ADR systems, flexible procedural rules for ADR
Proportionate treatment for various types of intermediaries and products
Specificities of financial services
Scope, proportionality of review, retained flexibility
Scope, extension of CRD IV package, securitization
Definition of low risk transactions, PEPs, beneficial owners
CRD IV
MCD
ADR
IMD
DPR
CCD
SB
AML
Where to Next?
IMD 1 adopted
Deadline
transpositio
n
CEIOPS advice
Public Hearin
g
Deadline public
consultatio
n
IMD 2
Internal EC w
ork
Including: - Studies- Impact Assessment- Collecting data from stakeholders
Publication
Proposal IMD 2
Discussions in
Parliament/C
ouncil12/2002 01/2005 11/2010 12/2010 02/2011 02/2011 –
07/201203/07/2012
The IMD 2 (1)
Where to Next?
Provision of all types of insurance products (life/non-life) by all types of
distribution channels :
1) Intermediaries (incl. credit institutions and their partners)
2) Insurance undertakings
3) Loss adjusters and professional management of claims
Differentiated regimes foreseen Limited product exemptions Minimum harmonisation
The IMD 2 (2)
Where to Next?
Registration
Professional qualifications
Information to be provided to customers
Conflicts of interest and transparency
Sanctions
Delegated acts
The IMD 2 (3)
Where to Next?
General Data Protection Regulation
Applicable to all sectors
Police and Criminal Justice Data Protection Directive
Only applicable to competent authorities
The DPR
Where to Next?
Enhanced rights for data subjects:
TransparencyConsentInformationAccessRight to be forgottenRight to data portability
Key Features (1)
Where to Next?
Enhanced obligations for data controllers and processors:
Data protection by design and by defaultData protection officerData protection impact assessmentPrior autorisation/consultationData breach notifications
Key Features (2)
Where to Next?
Principles relating to data processing
Lawfulness of processing
Conditions for consent
Right to be forgotten
Delegated acts
Eurofinas main concerns
Where to Next?
The EU Consumer Credit Sweep Initiative
APRC Guidelines
The European Parliament’s own-initiative report
What to expect next?
The CCD Review
Where to Next?
EU enforcement action to check compliance with consumer protection laws
562 websites were checked, only 30% passed the sweep test for compliance with the relevant EU consumer rules
Most common problems identified:
– Missing information in consumer credit advertising (APRC)– Omission of key information on the offer– Misleading presentation of the costs
Final Report in January 2013
The Consumer Credit Sweep Initiative
Where to Next?
Comitology Procedure (Art. 25 CCD)
Calculation Assumptions (Directive 14 Nov. 2011) APRC Interpretative Guidelines
Potential Risks:
In case of litigation Inclusion in the CCD review process
APRC Guidelines
Where to Next?
General approach towards the CCD review
Points of attention (1):
Foreign currency loans Right of withdrawal – linked credit agreements Lack of clarity in relation to ancillary servicesAdvertising and marketing practices
European Parliament’s report
Where to Next?
European Commission’s transposition check
London Economics study on the consumer credit market
Civic Consulting study on consumers over-indebtedness
European Commission’s Working Document
EBA Guidelines
What to expect next?
Many thanks
Tanguy van de Werve
+32 2 778 05 60
www.eurofinas.org
