Members of the European Parliament’s Committee on the Internal Market and Consumer Protection (IMCO) are working on compromises on the modernisation of the EU Distance Marketing of Consumer Financial Services Directive, proposed in May 2022 to bring this legislation into the digital age (repeal of Directive 2002/65/EC).
As the Council of the EU is due to adopt its position on Thursday 2 March (see EUROPE 13131/8), the discussion on the draft report by Arba Kokalari (EPP, Swedish) showed, on Wednesday 1 March, that some progress has been made, but efforts to compromise are still needed, notably on the right of withdrawal for consumers.
“My priority is to find the right balance that protects consumers while encouraging companies to innovate in the financial services sector”, warned Ms Kokalari, who was also rapporteur for the Digital Services Act (DSA).
Of the 177 amendments tabled to the text, on which the Committee on Economic and Monetary Affairs (ECON) has a say, the political groups have found common ground, Ms Kokalari said. At this stage, the five points of agreement cover: clarification of areas where sector-specific legislation prevails; provisions that will modernise the applicable provisions in the future; the role of financial influencers and telephone communications; and alignment with related legislation such as the DSA.
However, work remains to be done to find an acceptable compromise on the withdrawal function.
“The Commission has defined the withdrawal button in far too much detail. Any impact assessment can only conclude that the effects are disproportionate”, claimed the rapporteur. The vote on the report is scheduled for the end of March.
See the draft report: https://aeur.eu/f/5k0
The draft compromises: https://aeur.eu/f/5jz
The opinion of the ECON Committee: https://aeur.eu/f/5k2 (Original version in French by Aminata Niang)