What has happened?

The European Banking Authority (EBA) is consulting on extending the application of the Joint Committee Guidelines on complaints-handling to the new institutions under PSD2 and the Mortgage Credit Directive (MCD).

What does this mean?

The EBA has launched a public consultation on extending the scope of application of the existing Joint Committee (JC) Guidelines on complaints-handling to the new institutions established under PSD2 and MCD.

The EBA said that the proposal, which does not envisage any changes to the substance of the existing Guidelines, should ensure that an identical set of requirements for complaints-handling continues to apply to all financial institutions across the banking, investment and insurance sectors.

The EBA said that extension of the scope 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 existing JC Guidelines on complaints-handling set out requirements in relation to firms' complaints management policy and function, their registration of complaints, their reporting to national competent authorities, and their assessment of, and responses to, the complaints.

The 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, PSD2 and the Electronic Money Directive respectively.

The consultation paper proposes that the JC Guidelines should also apply to the new payment initiation service providers (PISPs) and account information service providers (AISPs) under the PSD2 and credit intermediaries and non-credit institution creditors under the MCD.

In the specific case of AISPs that provide only account information, but no other payment services, the EBA proposes to apply the Guidelines only to security-related, but not to other types of, complaints, in line with related requirements set out in PSD2.

Since some of the new actors under PSD2 and MCD can be very small, comprising of one or two persons only and, the EBA proposes that competent authorities should apply the JC Guidelines in a proportionate manner, taking into account the nature, scale and complexity of the organisation of the institutions and the nature and range of the services they offer

What happens now?

The consultation ends on 27 May 2018.

Responses can be sent by clicking on the "send your comments" button on the consultation page.

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