Like any law, the FSA has a purpose. The aim is that the consumer is protected in his / her choice when it comes to financial products. The government looks through the FSA to ensure that service providers carefully handle the consumer. The service has a duty of care given to the consumer allows. This duty of care is reflected by the following obligations:
- The financial service provider collects adequate information on the personal and financial situation of the client, and uses that advice;
- The financial service customer needs sufficient, timely and informed correctly about the content of the advice, the products listed herein and the risks associated with them.
By carefully the interests of the customer to go, the financial service provider takes responsibility for purchasing a product in part of the consumer. Recently we saw at the DSB customers felt sufficiently informed so there are many claims went to the bank of the consumers. The bank also received fines imposed by regulators. This resulted in the bankruptcy of the bank. The consumer confidence was lost.
The Financial Supervision Act applies to financial service providers who sell financial products. Examples of this are:
- Insurance companies;
- Insurance Intermediaries;
To ensure that consumers receive adequate information and insight, service providers are required to make a financial leaflet of a complex financial product. In advertising purposes must also mention the risks of the product. Famous examples of borrowing costs money and the risk of this financial product is very high.
Such a law is of course good, because it protects consumers in their choice. Without monitoring compliance with the law, there is the chance of going over the edge in financial services consulting and sale of a financial product. The AFM does this oversight.
In addition to the AFM, there are a number of consumer organizations critical keep an eye on the interests of the consumer. These organizations typically provide objective information so that the customer can make a better choice between the different products of different service providers. The Consumers and NIBUD (National Institute for Family Finance Information are the most obvious.
Every financial services where products are sold on credit are required to be members of the Credit Registration Office (BKR). For lenders displays and records the BKR information on credit and lending - and aflosgedrag of consumers in the Netherlands. Both in the present and the past. Each application for a consumer credit product will find a place BKR key. This protects the BKR both the lender and the consumer against unhealthy lending behavior.
VIS and EVA
Besides BKR more information is registered. In the Verification Information System be stolen and registered missing Dutch and foreign credentials. Bank employees can VIS via keys or identity cards valid and not missing or stolen.
Through the External Reference Application bank employees have the ability to check whether people and businesses have made abuse of financial services in the past.
The economic cycle ensures that producers provide employment and goods. The producer pays for this are employees wages for work performed. That salary is consumed by spending it on goods and services that are created by a producer. Consumers and producers are taking part in the economic cycle. They keep things moving therewith. If consumers buy fewer goods and services than the producer needed fewer employees. Layoffs and follow the economic cycle is a dent.