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Information to provide to consumer for better involvement
Consumer involvement in financial service policy-making is crucial to ensure that regulations and policies reflect the needs and interests of the public. The European Union (EU) has taken several steps to increase consumer participation in the policy-making process, particularly through the establishment of the Financial Services User Group (FSUG) and other initiatives.
1. Financial Services User Group (FSUG)
The Financial Services User Group (FSUG) is an expert group established by the European Commission to represent the interests of consumers and other end-users in the financial services sector. The FSUG provides advice to the Commission on policy initiatives, regulatory proposals, and other issues related to financial services. The group is composed of members from various backgrounds, including consumer organizations, trade unions, and academia, ensuring a diverse range of perspectives.
2. Other EU Initiatives to Involve Consumers in Financial Service Policy-Making
In addition to the FSUG, the EU has launched several other initiatives to enhance consumer involvement in financial policy-making:
3. Legislative Framework and Policy Documents
The involvement of consumers in financial service policy-making is underpinned by several key EU legislative documents:
4. Conclusion
The EU's commitment to involving consumers in financial service policy-making is evident through the establishment of the FSUG and the numerous initiatives aimed at enhancing consumer participation. By engaging consumers directly in the legislative process, the EU ensures that financial services regulation is not only robust but also aligned with the needs and interests of the public.
1. Financial Services User Group (FSUG)
The Financial Services User Group (FSUG) is an expert group established by the European Commission to represent the interests of consumers and other end-users in the financial services sector. The FSUG provides advice to the Commission on policy initiatives, regulatory proposals, and other issues related to financial services. The group is composed of members from various backgrounds, including consumer organizations, trade unions, and academia, ensuring a diverse range of perspectives.
- Mandate and Role: The FSUG plays an advisory role, offering insights and recommendations to the European Commission on how to improve consumer protection in financial services. The group meets regularly to discuss ongoing and upcoming policy issues and to provide feedback on legislative proposals.
- Membership: Members of the FSUG are appointed for a renewable three-year term. The composition of the group is designed to ensure that it is representative of different user groups and geographic regions within the EU.
- Key Outputs: The FSUG has produced numerous opinions, reports, and recommendations that have influenced EU financial services policy. These include input on areas such as digital finance, financial literacy, sustainable finance, and consumer protection in the banking and insurance sectors.
- Legislative Reference: The FSUG was established under the Commission Decision of 16 June 2010 (2010/C 166/03) and operates in accordance with the provisions laid out in this decision.
2. Other EU Initiatives to Involve Consumers in Financial Service Policy-Making
In addition to the FSUG, the EU has launched several other initiatives to enhance consumer involvement in financial policy-making:
- Public Consultations: The European Commission frequently holds public consultations on various financial services issues. These consultations allow consumers, organizations, and other stakeholders to provide their views on proposed policies or reforms. Responses to these consultations are considered during the drafting of new legislation or amendments to existing laws.
- Example: The 2022 public consultation on the review of the Mortgage Credit Directive aimed to gather opinions on the effectiveness of the current rules and how they could be improved to better protect consumers.
- Legislative Reference: These consultations are part of the Better Regulation agenda, which is guided by the principles laid out in the Interinstitutional Agreement on Better Law-Making (2016).
- Consumer Financial Education: The EU also prioritizes financial education for consumers, aiming to equip them with the knowledge and skills necessary to make informed decisions. The Commission supports various financial education initiatives and provides guidelines to member states on best practices.
- Legislative Reference: The promotion of financial literacy is highlighted in the Commission Communication "A Capital Markets Union for people and businesses - new action plan" (COM(2020) 590 final).
- Engagement with Consumer Organizations: The European Commission engages with consumer organizations such as BEUC (The European Consumer Organisation) and ANEC (The European Consumer Voice in Standardisation) to ensure that consumer interests are considered in financial services regulation.
- Legislative Reference: These engagements are often formalized through Memoranda of Understanding (MoUs) and regular dialogues facilitated by the Commission.
3. Legislative Framework and Policy Documents
The involvement of consumers in financial service policy-making is underpinned by several key EU legislative documents:
- Directive 2014/17/EU (Mortgage Credit Directive): This directive sets out the requirements for consumer protection in the area of mortgage credit, ensuring transparency and fairness in the market.
- Directive 2014/92/EU (Payment Accounts Directive): This directive aims to improve transparency and consumer rights regarding payment accounts, particularly focusing on fee transparency and the right to a basic payment account.
- Regulation (EU) No 1286/2014 (PRIIPs Regulation): The regulation on packaged retail and insurance-based investment products (PRIIPs) ensures that consumers receive key information documents (KIDs) that are clear, concise, and provide essential details on the financial products they are considering.
4. Conclusion
The EU's commitment to involving consumers in financial service policy-making is evident through the establishment of the FSUG and the numerous initiatives aimed at enhancing consumer participation. By engaging consumers directly in the legislative process, the EU ensures that financial services regulation is not only robust but also aligned with the needs and interests of the public.
