Distance Marketing: Commission Publishes Reform Proposals

The European Commission has announced its proposals to reform the Directive on Distance Marketing of Consumer Financial Services (DMD), which was transposed into Irish law in 2004.

The Commission's recent evaluation of the DMD indicated that its relevance and value had decreased given the volume of subsequent product-specific measures which contain protective provisions for consumers (e.g. the Consumer Credit Directive, the Mortgage Credit Directive and the GDPR). However, the Commission noted the ongoing relevance of the DMD in areas where financial products are not yet subject to product-specific EU legislation (e.g. crypto-assets).

With the rapid pace of technological innovation, the development of new products and distribution channels (including the increased use of digital on-boarding of new customers during the COVID-19 pandemic), and new market entrants (principally in the FinTech space), the Commission's view is that it's time for reform.