Europaudvalget 2019-20
KOM (2018) 0184 Bilag 4
Offentligt
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in the attention of the Speaker of the Folketing
Parliament of the Kingdom of Denmark,
Brussels, 28 October 2019
Ref.:
OPEN LETTER ON THE DIRECTIVE ON REPRESENTATIVE ACTIONS FOR THE PROTECTION OF THE
COLLECTIVE INTERESTS OF CONSUMERS (2018/0089 COD)
Dear Mr. Kristensen,
I am writing to you on behalf of BETTER FINANCE, the European Federation of Investors and Financial
Services Users. We are the public interest non-governmental organisation advocating and defending the
interests of European citizens as financial services users at the European level to lawmakers and the public
and promote research, information and training on investments, savings and personal finances. We are the
only European-level organisation solely dedicated to the representation of individual investors, savers and
other financial services users.
We are contacting you regarding the necessity to adopt a pan-European mechanism for collective
enforcement of consumer rights, a debate which started more than 22 years ago. The EU has achieved
significant progress since then, enlarging with 13 new Member States, adopting a single currency and
pursuing a Capital Markets Union for jobs, growth and citizens, among other.
The EU Single Market, in particular that for financial services and investment products, is becoming more
integrated, having a strong cross-border nature, and harmonised substantive rules on consumer protection.
However, businesses and citizens lack a cornerstone instrument to ensure the effectiveness of the EU acquis
to safeguard a competitive and level playing field in the economy:
a harmonised mechanism for collective
redress against breaches of consumer rights.
The Directive on Representative actions for the protection of the collective interests of consumers is the
long-awaited opportunity to eventually achieve that.
The mechanism to be instituted by the Directive must reflect a holistic approach in protecting consumer
rights in the EU. Collective redress mechanisms that work in practice for consumers, for example in Italy or
the Netherlands, capture several key features:
•
they cover the entire spectrum of consumers;
•
their adherence system is an
opt-out;
•
the criteria for standing for NGOs are flexible and fit-for-purpose;
•
they are coupled with alternative dispute resolution procedures.
BETTER FINANCE has been actively advocating for a proper private enforcement mechanism for
all
retail
financial services users since 2014. We have been fighting counterproductive arguments such as risk of
U.S. class action style of litigation ,
abuse and blackmail
, or impossible due to
practical difficulties
in
implementing this unadopted Directive. None of these have been properly substantiated with evidence.
However:
The most relevant sector concerning observed mass claims/issues is the financial
services sector
.
1
European Commission, Directorate-Ge
eral for Health a d Co su ers, Study Regardi g the Pro le s Fa ed y Co su ers
in Obtaining Redress for Infringements of Consumer Protection Legislation, and the Economic Consequences of such Problems:
Fi al Report , part
I (26 August 2008), p. 4.
1
The European Federation of Investors and Financial Services Users
Rue d’Arenberg 44,
Brussels - Belgium
Tel. (+32) 02 514 37 77 - Fax. (+32) 02 514 36 66
E-mail: [email protected] - http://www.betterfinance.eu
 kom (2018) 0184 - Bilag 4: Henvendelse af 28/10-19 fra Better Finance vedr. forslaget om indbringelse af forbrugersager
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EU financial services users are in a dire need of an attractive and efficient mechanism that would allow
their
representative organisations
to stand in court
on their behalf against breaches
of rights that generate
mass harm, affect millions of consumers and create damages worth of billions.
On a small sample of mis-selling cases in the area of capital markets, the findings are catastrophic:
over €45
billion estimated in losses, more than 13 million investors affected, of which very small part compensated
many years later.
3
The Council of the EU is expected to reach a common position soon and enter into trilogues with the
European Parliament and Commission. National Parliaments of EU Member States now play an essential
role in ensuring that the mandate of the co-legislators builds towards a proper collective enforcement
mechanism.
BETTER FINANCE urges National Parliaments to step in and ensure that
all
consumers and retail financial
services users benefit from an
opt-out
collective enforcement mechanism enabling
consumer protection
NGOs
to defend their rights in justice against breaches of consumer protection rights.
This Directive must reflect an EU innovative approach and create a mechanism that ensures a high
level of consumer and investor protection (in accordance with Articles 38 and 47 of the Charter of
Fundamental Rights), and equal conditions for access to justice (pursuant to Article 67 of the Treaty
on the Functioning of the European Union) for the entire spectrum of retail financial services users.
Annexed to this letter you will find the
Collective Redress Booklet,
containing all position documents and
working papers prepared by BETTER FINANCE to support our demands concerning the procedure file in
question. You can also access
http://betterfinance.eu/collective-redress/
for more information.
Strongly believing in the success of the EU project, the BETTER FINANCE team remains open for any further
discussions or enquiries on this subject matter.
As governments around the world withdraw from welfare provision and promote
long-term savings by households through the financial markets, the protection of
retail investors has become critically important.
2
Yours respectfully,
Guillaume Prache
Managing Director of BETTER FINANCE
2
3
Niamh Moloney,
How to Protect Investors: Lessons from the EC and UK
(2010) Cambridge University Press; emphasis added.
See the BETTER FINANCE Collective Redress Booklet, available here:
http://betterfinance.eu/collective-redress/.
The European Federation of Investors and Financial Services Users
Rue d’Arenberg 44,
Brussels - Belgium
Tel. (+32) 02 514 37 77 - Fax. (+32) 02 514 36 66
E-mail: [email protected] - http://www.betterfinance.eu