UK

Implementation of the DMD

Julie Patient, Consultant, Financial Institutions Group, Lovells

The EU has for many years recognised the need to ensure consumers entering into any type of agreement at a distance have adequate protections. The Distance Selling Directive introduced protections covering many products and services. The Distance Marketing of Consumer Financial Services Directive (DMD) ¹ extends the regime to all consumer financial services. It sets common standards for the provision of pre-contract and contractual information to consumers prior to a contract being concluded at a distance and contains provisions for withdrawal rights in many circumstances.The DMD was adopted in September 2002 with Member States required to bring it into effect in October 2004.