New Law on Financial Services

Implementation of the Law on Protection of Users of Financial Services with Distance Contracting Has Begun

Starting from 17th September 2018, the new Law on Protection of Users of Financial Services with Distance Contracting (hereinafter: Law) is being implemented. The aim of the Law is to further extend the legal protection of users of distance financial services, also, among other things, to facilitate the possibility of concluding contracts with financial services providers. Financial services providers include banks, insurance companies, leasing providers, payment institutions, investment companies, as well as other organizations.

The means of distance communication is any device that can be used for direct advertising, provision of information in the pre-contractual phase, giving and/or accepting offers, negotiating and concluding contracts without the simultaneous physical presence of the service provider and the user (such as the Internet, e-mail, mail, fax and telephone).

The distance contract can be concluded by using distance communication means in the form of an electronic document, using a qualified electronic signature, whereby, for concluding a distance contract the value of which does not exceed the amount of 600,000 RSD, the possibility of concluding or using at least two confirmation elements user verification (authentication) or using an electronic identification scheme of a high level of reliability is provided.

This Law stipulates that the provision of unsolicited financial services, i.e. not requested by the user, shall not produce any legal effect whatsoever to the user, nor shall the user have any obligations towards the service provider.

The supervision of the implementation of the Law is carried out primarily by the National Bank of Serbia, but depending on the type of financial services provider, supervision can also be performed by the Securities Commission, as well as by the market inspectors of the Ministry of Trade, Tourism and Telecommunications.

The penal provisions of the Law include fines for financial services providers ranging from 50,000 to 800,000 RSD in case of violation of the provisions of the Law.

When entering into distance contracts, the Law on the Protection of Financial Services Users should make it easier for an average IT user to more conveniently enter into contracts with financial service providers.

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