Protecting customers across borders
The financial crisis of 2008 and its repercussions on customers, and more generally on the economies of developed countries, have increased vigilance over business practices in the financial sector. Since then, customer protection has been increasingly regulated worldwide. These regulations aim to define a set of practices requiring that professionals act in the best interests of their customers.
The international work carried out by the ACPR in the field of customer protection revolves around its representation within European and worldwide institutions. At European level, the ACPR participates in the Standing Committees on consumer protection and financial innovation established by the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA), as well as in most of the thematic working groups that build on these committee’s work. The ACPR also plays an active role in the work of the Joint Committee of the European Supervisory Authorities, which aims to establish common rules or best practices for the entire financial sector (banking, insurance and investment services).
At global level, the ACPR is a member of the International Association of Insurance Supervisors (IAIS) and of the International Financial Consumer Protection Organisation (FinCoNet). The ACPR also takes an active role in the work carried out by these associations and the OECD in the field of customer protection.
The provisions applicable to the various sectors and players concerned tend to converge in terms of principles, building on shared pillars that notably include the provision of comprehensive, accurate and non-misleading pre-contractual information, the provision of advice that is consistent with the customer's needs and risk profile, the prevention and management of conflicts of interest and compliance with product governance and oversight rules. These issues are also at the heart of the ACPR's work at national level.
Main European legislation framing consumer protection (non-exhaustive list):
- Directive on credit agreements for consumers relating to residential immovable property (MCD)
- Directive on credit agreements for consumers (CCD)
- Directive on the comparability of fees related to account payments, payment account switching and access to payment accounts with basic features (PAD)
- Directive concerning the distance marketing of consumer financial services (DMD)
- Directive on payment services in the internal market (PSD2)
- Directive on insurance distribution (IDD)
- Regulation on key information documents for packaged retail and insurance-based investment products (PRIIPs)
These provisions are transposed into French law through amendments to either the French Consumer Code, the French Monetary and Financial Code or the French Insurance Code, as appropriate.
Updated on: 11/04/2022 18:36