Spanish advertising and transparency regulation on banking services expands its scope

The Spanish Official State Gazette (Boletín Oficial del Estado) has published on 29 April 2019 the Order ECE/482/2019, dated 26 April, that amends Order EHA/1718/2010, dated 11 June, on regulation and control of advertising of banking products and services (Orden EHA/1718/2010, de 11 de junio, de regulación y control de la publicidad de los servicios y productos bancarios) (hereinafter, the “Advertising Order“) and Order EHA/2899/2011, dated 28 October, on transparency and protection of clients of banking services (Orden EHA/2899/2011, de 28 de octubre, de transparencia y protección del cliente de servicios bancarios) (hereinafter, the “Transparency Order“).

Since its entry into force in 2010, the purpose of the Advertising Order is to establish the rules, principles and criteria that advertising activity of banking products and services must comply with. Meanwhile, the Transparency Order, approved a year later, develops rules of conduct and transparency measures in the provision of financial banking services to individuals with the purpose to ensure the appropriate level of clients protection of banking products and services of credit institutions.

This regime was only applicable to Spanish credit institutions and Spanish branches of foreign credit institutions or those established in other Member States. However, the legislator extends the scope of application in both rules and establishes as regulated entities all types of entities providing banking services (including payment services) in Spain through agents or under the freedom to provide services.

In this sense, the Advertising Order is no longer applicable only to credit institutions and the legislator expressly adds to its scope mortgage loan lenders, mortgage loan intermediaries and payment and electronic money institutions as entities subject to the advertising control obligations laid down in that rule.

The same thing happens to the Transparency Order and, therefore, its content is now mandatory for credit financial institutions.

In addition, the Advertising Order sets out, among other things, the conditions to be met by the representative example of a mortgage loan (ejemplo representativo de préstamo hipotecario) that appears in the advertisements made by lenders or credit intermediaries.

Finally, it should be noted that the regulatory amendments contained in Order ECE/482/2019 will not enter into force until 16 June 2019.