HISTORIC PRESS RELEASE : Consultation on EU Distance Marketing of Financial Services Directive [July 2003]

The press release issued by HM Treasury on 18 July 2003.

The Government today published a consultation document on implementing the EU Distance Marketing of Financial Services Directive (DMD).

The Directive sets common standards for the information that must be supplied to consumers of financial services prior to a contract being concluded at a distance, such as by telephone, internet, fax or mail.

The DMD will:

• Bring substantial benefits to both consumers and business.  Many financial services transactions like banking, credit, insurance, personal pension, investment or payment nature are likely to be conducted by electronic means across borders between Member States.
• Allow businesses to offer consumers a wider choice of methods by which contracts can be concluded.  It will mean that businesses would be able to operate on a level playing field and be more proactive in conducting business cross border.
• Benefit consumers through increased cancellation rights, more flexibility of choice and improved benefits in respect of the additional information that will be available to them.
• Bring greater competition among suppliers, with potentially beneficial effect on prices for the consumer.
• Enhance the working of a single market by giving consumers the confidence to buy products on a cross border basis, with providers being governed by a common set of core standards across the European Union.