EBA欧洲银行-BSG-response-to-Consultation-Paper-28JC-CP-2014-05292020-March-2015_8页_380kb

EBA Banking Stakeholder Group Consultation Summary on "Guidelines for Cross-Selling Practices"

Core Content

The EBA Banking Stakeholder Group (BSG) has provided detailed comments on the Consultation Paper 2014/05 "Guidelines for Cross-Selling Practices" issued by the Joint Committee of the three ESAs. The BSG supports the initiative to harmonize cross-selling practices across the European Union, emphasizing the importance of consumer protection and clarity in regulatory frameworks. They highlight the need for a joint approach to ensure consistency and fairness in the treatment of cross-selling practices by different supervisory authorities.

Main Views and Key Points

General Comments

• The BSG supports the initiative to harmonize cross-selling practices across the EU, as it aligns with consumer protection objectives.
• They emphasize the importance of distinguishing between the general marketing definition of cross-selling and its specific regulatory definition in the Guidelines.
• There is a call for clarity on the legal quality of certain comments, especially those that suggest applying the guidelines beyond financial products.
• The BSG suggests that cross-selling involving financial and non-financial products within the same group (e.g., a bank and a real estate agency) should be covered by the Guidelines.

Replies to Questions

1. Agreement on Definition of Cross-Selling

   • The BSG agrees that cross-selling should be clearly defined to avoid confusion with general marketing practices.
   • They recommend clarifying the distinction between bundled and tied products, especially in light of the MCD, which allows bundling but prohibits tying.
   • It is suggested that the definition should include non-financial products if they are sold together with financial ones.

2. Potential Benefits of Cross-Selling

   • The BSG acknowledges the potential benefits but warns against assuming they are always present.
   • They highlight that financial benefits may not be transparent or comparable, especially when products are sold in packages.
   • Convenience benefits should not lead to customers being "trapped" into buying additional products.

3. Potential Detriments of Cross-Selling

   • The BSG agrees that cross-selling can lead to mis-selling due to sales incentives for employees.
   • They note that these incentives may pressure employees to sell products they are not qualified to recommend.
   • The concept of the "responsible customer" is emphasized, suggesting that customers should be able to make informed decisions.

Proposed Guidelines and Comments

• Guideline 1 and 5:

  • The BSG supports the idea of clear and transparent disclosure of information.
  • They recommend referencing the KID for PRIIPS to ensure consistency in disclosure standards.

• Guideline 2:

  • Timely information is important, but in cases of bundled or tied products, the primary product may dominate the customer's attention.
  • The BSG suggests that the Guidelines should avoid overlaps with existing regulations such as MiFID and the PRIIPS KID.

• Guideline 3:

  • Price and cost information should be easily accessible.
  • There is overlap with MiFID and other regulations, which may lead to inconsistencies.

• Guideline 4:

  • Price and cost information may be hard to compare, especially in complex packages.
  • The BSG emphasizes that information should not be misleading and should allow for meaningful comparison.

• Guideline 6:

  • The term "non-price features and risks" is not clearly defined, leading to ambiguity.
  • The BSG suggests that such features should be clearly explained to customers to prevent misunderstandings.

• Guideline 7:

  • The choice between bundled and separate products should be clear and not overly complex.
  • The BSG stresses the importance of the "responsible customer" concept, ensuring customers make informed decisions.

• Guideline 8:

  • The BSG recommends extending existing MiFID provisions to other financial services such as payment accounts and credit cards.
  • They caution that relationship officers may not be fully aware of individual customer needs, which could affect the quality of advice.

• Guideline 9:

  • The BSG supports the idea of adequate staff training, especially in cross-sectoral contexts.

• Guideline 10:

  • Conflicts of interest in staff remuneration are a major concern.
  • The BSG reiterates the importance of addressing this in the Guidelines.

• Guideline 11:

  • The BSG supports the initiative to cancel or split product components if sold on a stand-alone basis, provided that penalties are not disproportionate.

Conclusion

The BSG advocates for clear, consistent, and consumer-focused guidelines on cross-selling practices. They emphasize the need for transparency, clarity, and the inclusion of non-financial products when relevant. Additionally, they highlight the importance of addressing conflicts of interest and ensuring that staff are adequately trained to provide suitable advice. The BSG believes that a harmonized regulatory approach will benefit both consumers and the financial sector by promoting fair and informed practices.