Protection of the Weaker Party in European Contract Law – Standardised and Individual Inferiority in Multi-Level Private Law Schutz des Schwächeren im Europäischen Vertragsrecht Typisierte und individ

Rösler, Hannes

doi:10.1628/003372509789566587

Cited by 2 publications

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“…This objective will not be met by privileging one of the parties, but by restoring balance in terms of information possessed by all financial market entities to compensate for gaps in their knowledge and prevent the customer from bearing excessive risk [Benohr 2018]. The basic aim of protection is not to stop customers on the financial market from entering into disadvantageous deals, but to make possible conscious decision-making with access to full information in a market free from fraud and abuse [Rösler 2010;FSB 2011]. Financial literacy can contribute considerably to financial market stability [OECD 2009], however, as financial markets have become more complex, consumers often lack the understanding of financial products and overestimate their knowledge leading to unsuitable decisions, in particular for vulnerable consumers.…”

Section: The System For Protecting Consumers Of Financial Servicesmentioning

confidence: 99%

The Customer as a Subject of Protection on the Financial Market in European Union

Cyman

2021

Financ. Law Rev.

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The crisis begun in 2007 exposed the weakness of the existing regulations, revealing challenges for legislators all over the world. Financial stability started to be understood as an essential value for the proper operation of the financial market. It has become important to address the question as to how to protect financial markets from more crises, or at least alleviate their effects. The idea of supervision of a financial market has undergone thorough transformation. Particular emphasis has been placed on protecting buyers of financial services. Adequate customer protection has been recognized as a sign of trust in the market and its stability and has gained systemic importance and relevance for the European financial system. There is a growing tendency to enlarge the group of subjects eligible for special protection. it is becoming an increasingly common idea that not only consumers but all non-professional customers should be protected. The idea is becoming widespread that the weaker party to a legal transaction can be not only a consumer [natural person] but also a non-professional market entity. Such a solution is certainly appropriate. Narrowing down the ‘consumer’ to a natural person may seem artificial and out of line with market realities, not to mention the serious consequences of bad financial decisions taken by non- professional financial market participants. Another important challenge facing the modern financial market is to establish a system of institutional safeguards to ensure security for all market entities and to enforce fair play rules. However, even the best provisions of substantive law, though necessary, may prove to fall short. Therefore, there is a pressing need for strong and competent both state and international institutions duly equipped with auditing and supervisory powers to deal with the present situation. They should also have the possibility of enforcing substantive laws in a way that allows for flexible responses to any emerging threat to the protected values. The shift towards a regulatory and supervisory method of protection sets a more serious tone for the supervision model adopted for the financial market. In it, the market is responsible not only for ensuring that the supervised entities operate correctly, but also for the quality of services that they provide.

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Section: The System For Protecting Consumers Of Financial Servicesmentioning

confidence: 99%

The Customer as a Subject of Protection on the Financial Market in European Union

Cyman

2021

Financ. Law Rev.

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Nationalism and Private Law in Europe

Comparato¹

2014

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Protection of the Weaker Party in European Contract Law – Standardised and Individual Inferiority in Multi-Level Private Law Schutz des Schwächeren im Europäischen Vertragsrecht Typisierte und individ

Cited by 2 publications

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The Customer as a Subject of Protection on the Financial Market in European Union

The Customer as a Subject of Protection on the Financial Market in European Union

Nationalism and Private Law in Europe

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