Paris to push for distance selling accord

Date: 29/06/2000

By Renée Cordes

France is stepping up the pressure on member states to reach agreement by the early autumn on proposals for a new legal framework to govern the sale of financial services via the phone, mail or the Internet.

The call comes as the European Commission is putting the finishing touches to a study of the legislation already in place in EU countries which was requested by internal market ministers. Officials say the report will be ready within weeks, paving the way for member states to reopen talks on the contentious dossier in informal working groups.

"The French are very keen to move forward with this," said one, predicting that Paris would push for agreement at a meeting of internal market ministers in November. French sources are even more optimistic, saying an accord could be reached by the end of September.

The aim of the planned measures is to harmonise nat-ional laws governing the 'distance selling' of financial services to encourage cross-border activity while ensuring that consumers are adequately protected.

The Commission came forward with its first proposal in October 1998, followed by a second version nearly a year ago. Under the latest plan, companies using distance-selling techniques would be allowed to operate across all 15 member states as long as they met key consumer protection requirements, including detailed rules governing the provision of information to customers.

Luxembourg, France, the UK and the Netherlands have welcomed the EU executive's approach, but other member states insist they should be allowed to impose additional requirements on firms. Govern-ments are also divided over the extent to which exemptions should be granted for specific financial products such as mortgages.

France is stepping up the pressure on Member States to reach agreement by the early autumn on proposals for a new legal framework to govern the sale of financial services via the phone, mail or the Internet.