Consumer Vulnerability in Financial Markets: Special Protection for the Elderly
Explore the need for special protection of elderly consumers in financial markets, the risks they face, and the current legal landscape. Learn about the particular vulnerabilities of senior consumers and the potential legislative steps to address them. Delve into the concept of consumer vulnerability and implications for consumer protection law in the context of ageing European societies.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Consumer Vulnerability in Financial Markets: Special Protection of the Elderly? 1st European Conference of the International Association of Consumer Law, 17.09.2024 r. Dr Anne-Marie Weber Weronika Herbet-Homenda Research conducted within the project Combating financial exclusion of the elderly in the digital era a regulatory roadmap , funded by the Polish National Science Center (2023/51/D/HS5/1563).
Introduction ageing of European societies silver economy what role for consumer protection law? key research questions: is there a need for special protection of elderly consumers in the financial markets? what risks are senior consumers particularly exposed to? are those risks efficiently addressed in the current legal state-of-play? what legislative steps could be taken?
The concept of consumer vulnerability vulnerability v. particular vulnerability exposure to different risks vulnerability to unfair commercial practices vulnerability to ill-considered decisions vulnerability to market exclusion different markets = different risks the need for contextualisation of consumer vulnerability
Particular vulnerability of senior consumers in the financial market vulnerability factors impacting senior consumers specifically impacting all consumers vomplexity of financial products relatively low level of income potential cognitive decline digital literacy gaps
Current legal landscape vulnerability to unfair commercial practices Unfair Commmercial Practices Directive, Article 5(3) vulnerability to ill-considered decisions combating information asymmetry, special information obligations e.g. Consumer Rights Directive, recital 34 vulnerability to market exclusion ensuring access to prominent services (electricity, gas and electronic communication networks) e.g. Directive 2002/22, recital 7 member states should adopt special regulations aimed at safeguarding the situation of specific customer groups, i.a. the elderly e.g. Directive 2009/72, recital 37 energy regulators should be granted the power to contribute to the protection of vulnerable customers e.g. Directive 2003/55, Article 3(3) member states should particularly ensure that there are adequate safeguards to protect vulnerable customers, including appropriate measures to help them avoid disconnection
Future legal landscape? Senior consumers exhibit specific vulnerabilities in the financial market and are thus exposed to specific risks, including, in particular market, exclusion and the consequences thereof. For the purposes of ex ante, sector-specific regulation, the elderly should be identified as particularly vulnerable consumers. The current legal framework does not address the specific vulnerabilities adequately. Within commercial banking, the identified regulatory gap could be filled through information obligations on: the upcoming closing of a bank branch the other nearest bank branch / branches the possibility and the procedure to switch to another provider (bank).
