Distance Marketing

In order to incite consumers to trust financial services at a distance (that is marketed by fax, phone, or via internet), a legal framework was set up spanning the whole of the Single Market so that consumers may gain easier access to financial services in other Member States, safe in the knowledge that their interests are protected.

Consequently, service providers have to submit to a whole series of obligations so that their customers can benefit from a high degree of protection in retail financial services that are marketed at a distance.

In Luxembourg, the legal provisions relating to financial services at a distance are set down in the consumer code. This code consolidates all Luxembourg legal and regulatory texts relative to consumption with a view to providing consumers with a more coherent and concise presentation of consumer protection provisions.

The code covers any distance contract concerning financial services concluded without the simultaneous physical presence of both service provider and consumer, regardless of the mode of concluding the contract at a distance.

Professionals have the obligation to communicate to the customer all contractual terms and conditions on paper or on another durable medium in due course before the conclusion of the contract, and are obliged to communicate information on:

  •     the professional
  •     the financial service
  •     the distance contract
  •     other information

Moreover, the consumer has the right to withdraw within 14 days, without penalty and without having to provide a reason for withdrawal.