-An internal market in retail financial services has been slow to develop. There has been no common currency. Firms operating in a number of member states have tailored the marketing and design of products to suit the culture, law and practice of each marketplace. Consumers have stuck with what they know either because of a natural reluctance to deal with unfamiliar providers or a lack of choice.
The introduction of the single currency and rapid developments in on-line selling have the potential to transform the situation. But it will only do so if:
Consumers have sufficient confidence to trade cross-border, derived from a high level of protection;
Providers face a business and legislative environment that enables crossborder trade to thrive.
These two objectives go hand in hand. There will be no business without confident consumers and willing providers. And in a world where increasingly more trade is carried out on-line, the quality and clarity of information provided to the purchaser takes on increasing importance.
In an effort to safeguard consumer interests, increasingly detailed information requirements are appearing at national and Community level. In the absence of a coherent approach, a proliferation of information requirements could create a barrier to the development of the single market in retail financial services. Put more positively, developing a coherent approach to information provision will help stimulate cross border activity, bringing greater competition to the industry and better deals for the consumer.
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