Regulatory Alerts2011-10-29
Order EHA/2899/2011 on Transparency and Client Protection in Banking Services (Error Correction)
The Spanish Ministry of Economy and Finance issued Order EHA/2899/2011 to unify and update banking transparency regulations, replacing outdated 1989 and 1994 rules to better protect retail clients. The Order mandates strict pre-contractual and contractual information disclosure, particularly for mortgage and consumer loans, while establishing requirements for responsible lending, fee transparency, and interest rate reporting. It also introduces specific safeguards for linked services, such as interest rate hedging instruments and floor/ceiling clauses, and recognizes electronic communications as equivalent to paper formats.
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