EFR releases new report on consumer protection in retail financial services

01 March 2004

The European Financial Services Round Table (EFR) published a new report entitled Consumer Protection and Consumer Choice. Because of the complex nature of many financial services products there is broad agreement on the need for consumer protection, in addition to prudential and systemic regulation. However, without agreement on how the different regimes in the Member States can be harmonised or at least achieve a significant degree of convergence, progress towards an integrated European market in retail financial services will be impossible.

The EFR proposes five principles which could form the basis of the Common Core Standards to be adopted at EU and national level. These standards should be implemented through Common Consumer Protection Rules and be harmonised at EU level, thereby undertaking efforts to maintain justified national regulations and removing non essentials.

The EFR believes appropriate, informative and meaningful disclosure is a more effective way of protecting the consumer than direct regulatory intervention. Rather than seeking a “big bang” approach to harmonisation, the EFR has proposed a multi-track approach.

Executive Summary
Full report

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