Brussels, 18/11/2014 (Agence Europe) - The Commissioner for Financial Services, Jonathan Hill, wants to apply the existing rules for the protection of consumers of retail financial products before doing anything else. Now, “with this great wave born of our post-crisis regulatory action behind us”, “the implementation of the rules recently adopted is the next step”, the Commissioner told the European Economic and Social Committee, on Tuesday 18 November.
He referred to the rules strengthening transparency and consumer protection, which were brought in by the texts on deposit guarantees, the financial instruments markets ('MiFID') and pre-contractual information on retail financial products ('PRIIPs') (EUROPE 11194).
Hill used the example of the opening-up to competition of the European sky, which has brought consumers advantages in terms of prices, not to mention security. “Consumers voted with their feet. They may complain about a lack of service or baggage restrictions, but they have chosen to pay less and accept the disadvantages (…). So for my money, the starting point is as follows: can we apply these lessons to financial services?”, he asked.
Listing the future stakes for the retail financial services sector, the British Conservative praised the benefits of “competition” which, he said, extends the choices available to consumers, puts a downwards pressure on prices and promotes the emergence of new services. He argued in favour of as much “transparency” as possible, to allow consumers to make informed choices, for instance through the many websites comparing prices on offer. He called for sanctions to make an example of companies in the event of fraud, for instance in the recent case of exchange rate manipulation by major business banks. He went on to refer to changes in behaviour, which is becoming increasingly mobile, as regards the consumption of retail financial products. Whatever the event, Hill pledged to talk to and to consult all of the stakeholders before taking action. He has already met representatives of organisations such as the European Consumer Organisation (BEUC) and Finance Watch. (MB)