European Commission Publishes Report On The Modernisation Directive For Consumer Protection Rules

RegCORE – Client Alert | Capital Markets Union

QuickTake

As in the EU's 2019-2024 legislative cycle consumer protection in financial services is likely to remain so for the incoming European Commission (EC) policymakers for the current term which is set to conclude in 2029. The overall aims of the EC on its consumer protection priority are two-fold – (i) strengthen rules generally (and specifically when applicable to financial services) while ensuring they are (designed as) fit for purpose and (ii) harmonise national transposition of EU-level rules largely set out in Directives and/or those rules that remain set at national law. As part of the EU's “New Deal for Consumers Initiative” the EC spearheaded the introduction of Directive (EU) 2019/2161, commonly referred to as the “Modernisation Directive” (the MD). The MD sought to enhance consumer protection and promote fairness and transparency for consumers in the Single Market. It did so by overhauling existing EU