A joint consultation paper has been launched by the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) concerning proposed guidelines for harmonised complaints handling in the securities and markets sector. Firms can provide investment, banking and insurance services to consumers across the EU single market, yet at present a regulatory gap exists. Current European Union and national legislation provide various diverging requirements which hamper the establishment of a level playing field within the single market.
The draft guidelines seek to provide a minimum level of supervisory convergence across the EU in relation to firms’ arrangements for complaints handling to guarantee adequate protection of complainants. EU consumers would be able to refer to a single set of complaints-handling mechanism for all products and services in the three sectors of financial services. The proposed guidelines will apply in relation to complaints stemming from the endeavours of the following entities:
- investment firms under MiFID,
- management companies, and investment companies that have not designated a management company (under UCITS Directive)
- credit institutions,
- payment institutions,
- electronic money institutions, and
- external Alternative Investment Fund Managers when providing investment services of individual portfolio management or non-core services.
These firms will be required to put in place a complaints management policy and provide clear, accurate, up-to-date written information regarding their complaints-handling process. All relevant evidence regarding the complaint should be investigated and a response should be given to complainants without undue delay. Moreover, firms should make available information on complaints received to the regulatory authorities and analyse complaints-handling data regularly to identify and rectify any recurring or systematic problems.
