Brussels, 04/04/2014 (Agence Europe) - On Friday 4 April, EU member states' representatives to the EU on the Coreper committee endorsed two inter-institutional agreements on two directives, one on basic bank accounts and one on pre-contractual information (PRIPS), both of which will come into force in 2016.
New EU rules will make it possible for any adult inhabitant of Europe to open a basic bank account. Anyone legally residing in the EU will be able to open an account in any EU country without any restrictions due to nationality. The directive will ensure that people are properly informed of this right through an information sheet on bank charges. It will be made easier to switch bank accounts, including from one country to another.
PRIPS. A document will apply across the EU that includes key information about a financial product (nature, objectives, risk, commission payments to a financial intermediary) to be supplied to any individual wishing to invest in a retail finance product (see EUROPE 11052). The document will enable people to make an educated choice and shop around. A “comprehension alert” label will be introduced to help retain investors by pointing out that they are about to buy a complex, risky product which may have been sold fraudulently in the past. The future directive will not cover most savings products, non-life insurance or some life insurance products. It will also not cover private pensions.
The EP will endorse both agreements in mid-April. (MD and MB)