Credit intermediaries – extension of the transitional arrangements

According to the Decree-Law, entities that:

• already acted as credit intermediaries on 1 January 2018, and

• apply to Banco de Portugal until 31 December 2018 for authorisation to carry out credit intermediary activities

may continue to exercise these activities until 31 July 2019, unless they are notified of Banco de Portugal's decision on the application for authorisation and registration to exercise these functions before that date.

They are, however, required to comply with all applicable legal and regulatory rules concerning the exercise of this activity.

Authorisation and registration of credit intermediaries

Credit intermediaries are natural or legal persons that:

• present or propose credit agreements to consumers;

• assist consumers in preparatory work for credit agreements, even where not presented or proposed by the credit intermediary;

• enter into credit agreements with consumers on behalf of the lending institutions;

• provide consultancy services, by making tailor-made recommendations on credit agreements.

The credit intermediary is not authorised to grant credit, nor to participate in the sale of other banking products or services, such as time deposits or payment services. Even when a credit intermediary intervenes, credit is always granted by institutions duly authorised to grant credit (e.g. credit institutions).

Access to the credit intermediary activity depends on authorisation and registration with Banco de Portugal.

The application for authorisation to exercise the activity must be submitted to Banco de Portugal here.

Banco de Portugal notifies the applicant of the decision on the authorisation within 90 days of the date of application. However, should Banco de Portugal require further information, the time period for notifying the applicant of the decision may be extended to 180 days counting as of the original application date.

If the authorisation is granted, as a rule, Banco de Portugal carries out the registration. Registration is completed within 30 days of the authorisation notification.

Applicants may check the status of their application for authorisation or registration online.