2014年-EBA欧洲银行管理局_EBA-BS-2012-003-Financial-Innovation-and-Consumer-Protection--Overview-of-EBA-work-in-2011-2012_31页_744kb

Summary of the EBA's Standing Committee on Financial Innovation (SCFI) Work in 2011-2012

I. Background and Objectives

The European Banking Authority (EBA) established the Standing Committee on Financial Innovation (SCFI) in May 2011 to support its mandate in the areas of financial innovation and consumer protection. The SCFI has two subgroups: the Sub-Group on Consumer Protection (SGCP) and the Sub-Group on Innovative Products (SGIP). Its main objectives include:

• Promoting transparency, simplicity, and fairness in consumer financial products and services across the EU internal market.
• Monitoring new and existing financial activities to ensure market safety, soundness, and regulatory convergence.
• Safeguarding the objectives of EBA regulation against harmful financial innovations.
• Developing common methodologies to assess product characteristics and distribution processes on institutions and consumers.

The SCFI also aims to identify and assess risks that may be addressed by other EBA committees, such as SCRePol (for regulation) and SCOP (for supervisory action), and to feed into the EBA's broader risk assessment of the European banking sector.

From 2012 onwards, the EBA will publish an annual report identifying areas of concern in consumer protection and financial innovation, along with recommendations to the Board of Supervisors, national authorities, and the European Commission.

II. Consumer Protection

Consumer protection is a central focus of the SCFI, with the aim of ensuring fair treatment of customers and enhancing trust in financial markets. Key areas of concern identified by competent authorities include:

• Indebtedness and responsible credit
• Financial literacy and education
• Complex savings products
• Bank account fees and charges
• Unnecessary sales
• Impact of technology
• Comparison websites

These areas highlight the need for transparency, disclosure, and suitability in financial services. The EBA and SCFI are working to address risks such as over-indebtedness, poor credit practices, and the complexity of financial products that can lead to consumer detriment.

3.1 Indebtedness and Responsible Credit

• The global financial crisis and ongoing economic challenges have raised concerns about over-indebtedness, arrears, and foreclosures.
• Issues span mortgage lending and personal credit, including overdrafts, credit cards, and hire purchase.
• Several countries have introduced regulatory measures to prevent excessive lending, such as:
  • Limiting loan-to-income and loan-to-value ratios.
  • Setting strict criteria for foreign currency loans.
  • Implementing codes of conduct for lenders and intermediaries.
  • Encouraging loan restructuring and debt management.

The Consumer Credit Directive (CCD) and the Mortgage Credit Directive (MCD) are key legislative tools aimed at addressing these concerns. The MCD is expected to improve pre-contractual information, advice requirements, and suitability assessments for consumers.

III. Innovative Products

The SCFI is tasked with identifying and assessing potentially harmful financial innovations, especially those that could impact the stability of the financial system and consumer protection. Some of the products highlighted include:

• Collateralised commercial paper
• Contracts for difference
• Convertible bonds
• Exchange Traded Funds (ETFs)

ETFs, in particular, are noted for their growth in size and complexity, which can lead to lack of transparency and systemic risks. The EBA has initiated an analysis of ETF structures (physical and synthetic) and their associated risks.

3.4 ETFs: Market, Risks, and Regulatory Treatment

• ETFs are complex financial instruments that are increasingly used by both retail and professional investors.
• The market for ETFs is expanding rapidly, raising concerns about risk management, product suitability, and supervisory challenges.
• The EBA is working with Member States’ supervisory authorities, market participants, and other ESAs to build a market intelligence function that can identify and address harmful innovations before they cause material damage.

The EBA plans to develop binding technical standards and coordinate regulatory approaches to mitigate the risks associated with financial innovation. This includes working with the European Systemic Risk Board (ESRB) and the European Central Bank (ECB) to monitor and address emerging risks.

Annex 1: Survey on Consumer Protection Issues

• The SGCP conducted a survey in late 2011 to identify key consumer protection issues across the EU.

• Competent authorities were asked to list the top two issues in their jurisdictions.

• Identified issues include:

  • Indebtedness and responsible credit
  • Financial literacy and education
  • Complex savings products
  • Bank account fees and charges
  • Unnecessary sales
  • Impact of technology
  • Comparison websites

• The survey highlighted the complexity of products and the need for better financial education.

• The EBA plans to develop more formal methodologies for collecting and analysing consumer protection data in 2012.

Annex 2: Exchange Traded Funds (ETFs)

• ETFs are financial instruments that track the performance of an index, allowing investors to gain exposure to a broad range of assets.

• There are two main structures: physical ETFs and synthetic ETFs.

• Physical ETFs replicate the performance of an index through direct investment in underlying assets.

• Synthetic ETFs use derivatives to replicate index performance, which can introduce additional risks.

• The parties involved in ETFs include:

  • Investors
  • Market makers
  • Issuers
  • Swap counterparties
  • Regulatory bodies

• Risks associated with ETFs include:

  • Investor risks: Misunderstanding of product complexity and potential losses.
  • Issuer risks: Exposure to counterparty risk and market volatility.
  • Market maker risks: Liquidity and market integrity concerns.
  • Systemic risks: Potential for market instability and contagion.

• The EBA plans to develop regulatory guidance and supervisory recommendations for ETFs and other innovative products, in collaboration with other ESAs and the European Commission.

Key Outcomes and Future Work

• The SCFI and SGCP aim to identify risks early and prevent harm to consumers and the financial system.
• A market intelligence function is crucial for proactively addressing financial innovations.
• The EBA will publish an annual report starting in 2012, summarising key concerns and recommending actions.
• The Consumer Credit Directive (CCD) and Mortgage Credit Directive (MCD) are expected to address many of the identified issues, including pre-contractual information, suitability, and responsible lending.
• The ESRB's recommendations on foreign currency lending are also being implemented by national authorities.

The SCFI will continue to collaborate with other regulatory bodies and market participants to ensure effective supervision and consumer protection in the evolving financial landscape.