FinCoNet Newsletter highlights the inclusion of credit intermediaries under the supervision of Banco de Portugal

The article “Banco de Portugal supervisory authority is extended to credit intermediaries”, prepared by Banco de Portugal, describes the implementation of the legal framework for credit intermediaries in Portugal.

As of 1 January 2018, credit intermediaries in Portugal are governed by a legal framework that establishes the requirements applicable to access to and pursuit of the activity of credit intermediation and the provision of consultancy services.

Banco de Portugal is responsible for authorising and registering credit intermediaries. Each week, Banco de Portugal discloses information, on the Bank Costumer Website, on the status of authorisation requests to carry out credit intermediary activity, approvals and rejections, and an updated list of credit intermediaries authorised to carry out the activity in Portugal.

Banco de Portugal is also responsible for monitoring compliance with the rules governing the pursuit of the activity of credit intermediary, including duties in terms of conduct and provision of information to consumers, as well as for the analysis of complaints about the performance of credit intermediaries.

This newsletter also highlights a report published by the World Bank, entitled Financial Consumer Protection and New Forms of Data Processing Beyond Credit Reporting, which analyses the benefits and risks of using new sources of data and new ways to process data as regards the provision of digital financial services. Articles prepared by the Consultive Group to Assist the Poor – operating at the World Bank – were also published, on the integration of financial inclusion objectives into strategies for regulating the financial system, and by the Central Bank of the Russian Federation on measures taken in the context of microfinance to limit the cost of credit, were also published.

The newsletters can be found on the FinCoNet website and on this website.

About credit intermediaries

When a consumer and a credit institution enter into a credit agreement, a third party may be involved: the credit intermediary. These entities present or propose credit agreements, and they may also enter into credit agreements on behalf of lenders, help consumers to prepare said agreements, or provide consultancy services.

The credit intermediary is not authorised to grant loans, nor to participate in the marketing of other banking products or services, such as time deposits or payment services.

About FinCoNet

FinCoNet is an international organisation of supervisory authorities which have responsibility for market conduct in the sale of retail banking products.

Its main goal is to improve the protection of banking product consumers, focusing on credit products and payment services.

Banco de Portugal, as banking conduct supervisory authority, is a founding member of FinCoNet and is a member of its Governing Council, presently holding the Vice Chairmanship.