ANNEX II

Credit Intermediaries (CIs) must, in general, act with diligence, loyalty, discretion and conscientious regard for the interests entrusted to them, in particular for the rights of their clients.

In the context of relations with clients, they are required to:

• Intermediate only credit agreements on which they hold detailed and objective information
• Carry out their activity on the basis of the information obtained about clients' financial situation, objectives and needs
• Take steps to prevent consumers from making unlawful, inaccurate or incomplete declarations
• Observe the duty of secrecy in respect of information about the consumer that comes to their knowledge

Where they provide advisory services in relation to credit agreements, CIs must, in addition to observing the duties set out above, also:

• Obtain information from clients about their personal and financial situation
• Consider a sufficiently wide range of credit agreements available in their product range
• Assess whether the credit agreements are suitable for clients' personal and financial situation
• Recommend the credit agreements that prove suitable for the clients' situation
• Provide the consumer with a document setting out their recommendations

In addition to providing specific information about credit agreements, CIs must comply with a set of duties to give information about their activity.

In particular, they must state, clearly visibly and legibly on the outside of premises open to the public, their name, form or designation and their category of CI, and mention the fact that they are registered with Banco de Portugal.

In addition, CIs are required to make available a set of information about their activity on their websites and inside premises open to the public. Among other items, information must be given about:

• The registration number with Banco de Portugal
• The category of credit intermediation in which they operate
• The credit intermediation services they are authorised to provide
• The provision of advisory services
• The identity of the lenders with whom they hold binding agreements, further specifying, where applicable, whether they carry out their activity on an exclusive basis
• The identity of the entity providing professional indemnity cover for the credit intermediation activity, it being necessary, where a professional indemnity insurance policy has been taken out, to specify the policy number and validity period

Before providing credit intermediation services and advisory services, CIs must also give clients documents on paper or another durable medium containing, among other items, information about:

• The means available to clients for filing complaints with the CI and with Banco de Portugal
• The alternative dispute resolution mechanisms made available to clients
• The existence and amount of the commissions or other incentives the CIs may receive from the lending institutions

Before providing advisory services, tied CIs must supply the document referred to in the previous paragraph, further informing clients, on paper or another durable medium, that the advisory services are based solely on the consideration of credit agreements available in their product range.

CIs must inform the client adequately, allowing them to assess whether the credit agreement is suited to their needs and financial situation. To that end, CIs must explain to clients the content of the European Standardised Information Sheet (ESIS), the draft credit agreement and the documents annexed to the ESIS.

In advertising relating to their activity, CIs are bound to observe a set of legal requirements. In particular, CIs are required to:

• Not use expressions that create confusion between their activity and the granting of credit
• State the category of credit intermediation in which they operate, the services they provide and whether they are authorised to provide advisory services
• Identify the lenders or group of lenders with whom they hold binding agreements, specifying whether they carry out their activity on an exclusive basis

Furthermore, tied CIs may only publish advertising they have produced themselves regarding credit products if the lending institution responsible for that product has approved that advertising beforehand.

Tied CIs may only be remunerated by lenders for the provision of credit intermediation and advisory services in relation to credit agreements, and may not receive sums from consumers, whether by way of fee, commission or expense.

Tied CIs are prohibited from receiving or handing over any sums relating to the formation, performance or early repayment of credit agreements.

This prohibition does not extend to receiving the remuneration to which CIs may be entitled for providing credit intermediation or advisory services in relation to credit agreements.

Clients may file a complaint about a CI's conduct by completing the Complaints Book, whether in physical or electronic format.

Note that CIs must sign up to the Electronic Complaints Book, registering at livroreclamacoes.pt. Clients may also file a complaint directly with Banco de Portugal.

It falls to CIs to implement appropriate and effective procedures to ensure those complaints are analysed and handled.

CIs are required to give clients access to at least two alternative dispute resolution bodies in respect of the provision of credit intermediation services and of advisory services in relation to credit agreements.

Without prejudice to the specific information to be given to clients about those bodies, CIs are required to notify Banco de Portugal of the identity of the dispute resolution bodies they have joined, so that this information can be made public on the Bank Customer Website.

The bodies we have joined are identified here.