EBA Updates Guidelines on Complaints-Handling to Extend Their Scope
EBA published an update to the Joint Committee guidelines on complaints-handling. The update includes an extension of the scope of application of these guidelines to the authorities supervising the new institutions established under the revised Payment Service Directive (PSD2) and the Mortgage Credit Directive (MCD).
This extension will ensure that an identical set of requirements for complaints-handling continues to apply to all financial institutions across the banking, investment, and insurance sectors. This will provide consumers with the same level of protection, irrespective of which regulated product or service they are purchasing and which regulated institution they are purchasing it from. The Joint Committee Guidelines are addressed to authorities competent in their jurisdictions for supervising complaints-handling by firms, which in the banking sector include credit institutions, payment institutions, and electronic money institutions, as defined in the Capital Requirements Directive (CRD), the PSD2, and the Electronic Money Directive (EMD), respectively. The scope of the application of the Joint Committee Guidelines will be extended as of May 01, 2019 to the authorities competent for supervising complaints-handling by:
- Payment initiation service providers, which provide only payment initiation services
- Account information service providers (AISPs) benefiting from an exemption under Article 33 of PSD2, which provide only account information services
- Credit intermediaries under the MCD
- Non-credit institution creditors under the MCD
In case of AISPs, which provide only account information services, but no other payment services, EBA, in line with related requirements set out in the PSD2, confirmed that the guidelines will apply only to security-related complaints. EBA also clarified that all credit intermediaries should inform consumers about the procedures for submitting a complaint, although competent authorities should consider a general proportionality principle when applying guidelines to credit intermediaries that are sole traders. In relation to the specific case of credit intermediaries that are tied to, or work exclusively for, one creditor, EBA further clarified that these intermediaries can either handle complaints themselves or rely on the complaints-handling procedure of the creditor.
Related Links
Keywords: Europe, EU, Banking, Insurance, Securities, Complaints Handling Guidelines, CRD, PSD 2, MCD, EBA
Previous Article
Danièle Nouy of ECB on Banking Regulation and Supervision for SMEsRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.