The draft Directive will harmonise the national legislation on
the distance marketing of financial services. Regulations are
already in force throughout the EU which implement a Directive on
the distance selling of other products – such as sales of books
on-line or by mail order. However, recognising a need for greater
consumer protection in the area of financial services, financial
products were excluded with the intention that they would be the
subject of a separate Directive.
The Committee concluded that the Council’s common position on
Wednesday adopted 38 amendments. Among these, it broadened the
scope of the Directive by widening the definition of “supplier” to
include “intermediaries.” It also clarified the period within which
consumers can withdraw from a contract without incurring penalties
and without giving reasons – known as a “cooling off” period. This
period will be 14 calendar days in principle or in some cases 30
days or, following an amendment adopted by the Committee, three
months under certain circumstances.
Under the Distance Selling Regulations in force in the UK for
non-financial products, consumers are given a cooling off period of
only seven working days.
