Guidelines for complaints-handling for the securities (ESMA) and banking (EBA) sectors

Status: Final and translated into the EU official languages

ESMA and the EBA are proposing to develop complaint handling guidelines for the investment and banking sectors that are identical to the existing EIOPA guidelines for the insurance sector. The objective is to provide EU consumers with a single set of complaints handling arrangements, irrespective of the type of product or service and of the geographical location of the firm in question. This will also allow firms to streamline and standardise their complaints handling arrangements and national regulators to supervise the same requirements across all sectors of financial services.

Consultation on the extension of the application of the Joint Committee Guidelines on complaints-handling to the new institutions under PSD2 and MCD (EBA/CP/2018/02)

Summary
27/03/2018

The European Banking Authority (EBA) launched today a public consultation to propose extending the scope of application of the existing Joint Committee (JC) Guidelines on complaints-handling to the new institutions established under the revised Payment Service Directive (PSD2) and the Mortgage Credit Directive (MCD). The proposal, which does not envisage any changes to the substance of the existing Guidelines, will 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 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 consultation runs until 27 May 2018. 
 
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 (CRD), the PSD2 and the Electronic Money Directive (EMD) 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 the PSD2 itself.
 
Since some of the new actors under the PSD2 and the 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.

Consultation process

Responses to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 27 May 2018.

Legal basis and background

In June 2012, the European Insurance and Occupational Pensions Authority (EIOPA) published its ‘Guidelines on Complaints-Handling by Insurance Undertakings’. In June 2014, the European Securities and Markets Authority (ESMA) and the EBA read across these Guidelines to the investment and banking sectors respectively and issued them as JC Guidelines for complaints-handling for the securities and banking sectors, under Article 16 of Regulation (EU) 1093/2010 (EBA Regulation).
 
In March 2016, Directive 2014/17/EU on credit agreements for consumers relating to residential immovable property (the Mortgage Credit Directive) started to apply and introduced requirements for credit agreements offered by credit institutions and two new types of institutions - credit intermediaries and non-credit institution creditors, which are presently not in the scope of the JC Guidelines. 
 
In January 2018, Directive (EU) 2015/2366 on payment services in the internal market (the revised Payment Services Directive) started to apply and added two new providers of payment services – account information service providers and payment initiation service providers.
 
Joint Committee consultation on draft guidelines for complaints-handling for the securities (ESMA) and banking (EBA) sectors (JC/CP/2013/03)

Summary
06/11/2013

The European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) have jointly launched a consultation on guidelines for complaints handling in the securities and banking sectors. The proposed Guidelines will build on the existing guidelines on complaints handling by insurance undertakings published by the European Insurance and Occupational Pensions Authority (EIOPA) in June 2012. The consultation runs until 7 February 2014.

Consumers in the EU can purchase, and firms can offer, financial services and products in the banking, investment and insurance sectors across the EU. In order to increase market confidence of all participants, the Joint Committee of the three European Supervisory Authorities (ESAs) is seeking to develop a harmonised approach to handling complaints. The three ESAs are doing so through guidelines that, once adopted, would apply equally across all 28 Member States and will be the same for all three sectors of financial services.

To that end, ESMA and the EBA have developed guidelines for the investment and banking sectors that build on the existing complaints-handling guidelines established by EIOPA for the insurance sector. The objective is to provide EU consumers with a single set of complaints handling arrangements, irrespective of the type of product or service and of the geographical location of the firm in question. This will also allow firms to streamline and standardise their complaints handling arrangements and national regulators to supervise the same requirements across all sectors of financial services.

ESMA and the EBA expect to publish the final guidelines in Q1 2014.

Consultation process

Please send your comments to ESMA and the EBA by email to sarah.raisin@esma.europa.eu and joint-committee@eba.europa.eu indicating the reference ‘JC complaints-handling CP 2013-03’ in the subject field. The deadline for the submission of comments is 7 February 2014. Please note that comments submitted after the deadline, or sent to another e-mail address, will not be processed. All contributions received will be published following the close of the consultation, unless requested otherwise.

Responses