On 12 December 2018, HM Treasury published a draft version of the Financial Services (Distance Marketing) (Amendment and Savings Provisions) (EU Exit) Regulations 2019 (the draft SI). An accompanying explanatory information webpage was published on 21 November 2018.
Distance contracts are defined in Article 2 of the Financial Services (Distance Marketing) Regulations 2004 (the UK Regulations) as contracts for financial services between consumers and suppliers concluded under an organised distance sale, or service provision scheme run by the supplier or an intermediary, where the supplier or intermediary makes exclusive use of one or more means of distance communication up to, and including, the time at which the contract is concluded.
The EU Distance Marketing Directive sets the minimum standards for information to be given to consumers of financial services prior to a distance contract becoming binding on the consumer. This is transposed in the UK through provisions in the FCA Handbook and the UK Regulations.
The draft SI will, in the case of a no deal Brexit, amend the UK Regulations to ensure that they continue to operate effectively once the UK has left the EU. To ensure that the UK Regulations will continue to operate effectively, references to EU and EEA bodies, territories and instruments have been omitted where necessary. Additionally, references to the European Consumer Credit Information Form have been replaced with references to the Pre-Contract Credit Information (Overdrafts) Form.