The Financial Services Consumer Panel has written to the FSA to raise concerns over the possible abolition of the current opt out for financial services in the Unfair Commercial Practices Directive, currently under review by the European Commission.
The current UCP Directive adopted in 2005 regulates the practices businesses may use to sell to consumers. However, Article 3(9) of the Directive allows flexibility for national regulators to introduce more restrictive or proscriptive rules to protect buyers of financial products.
If this provision is removed, it would mean the loss of Member State discretion. The UK has made use of this discretion and there is a risk that hard-won consumer protection rules could be eroded.
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