Established in 2013, the International Financial Consumer Protection Organisation (FinCoNet) is an international organisation of supervisory authorities which have responsibility for financial consumer protection. Read more...
FinCoNet Briefing Note: Buy Now Pay Later - Risks for consumers and regulatory and supervisory approaches
BNPL products are a relatively new form of short-term consumer credit offered at points of sale, often interest-free, that have been gaining significant traction in consumers’ habits. Due to the simplified purchase experience they provide, as well as the associated marketing strategies, it is relatively easy for their true nature as credit agreements to be overlooked, with all its consequences for consumers. While often emerging in grey areas that so far, in many jurisdictions, had remained uncovered by preexisting regulation, BNPL products pose risks to consumers that should be mitigated, as well as challenges to regulators and supervisory authorities. This Briefing Note, informed by a survey answered by 17 market conduct authorities, explores the concept and key features of BNPL, giving an overview of the legal and regulatory approaches, as well as the supervisory strategies put in place to tackle the risks and challenges it poses for consumers. |
FinCoNet Briefing Note: Market conduct supervision in challenging times
Download (PDF) During challenging times, such as economic crises or periods of significant disruption, effective market conduct supervision becomes even more crucial. Financial consumers face particular challenges given the current macro-economic picture, including interest rate increases, set against the backdrop of a rapidly changing financial services industry (including through digitalisation). It is imperative to better understand the potentially negative and significant implications for consumer engagement with financial institutions and how this impacts the undertaking of market conduct supervision. This briefing note is based on work carried out by FinCoNet including discussions from four FinCoNet workshops held between April and July 2024, survey responses and case studies provided by eleven jurisdictions, and a series of nine workshop presentations made by SC6 members. The full content of these materials (of which this briefing note is just a summary) is available to FinCoNet members. |