Country Manual Credits – Spain – BRP Update 2024
BRP has updated its Country Manual Credits for Spain out of bank’s country of establishment (DEF, RS, BT and RT)
| Source of changes | Answers |
|---|---|
| Law / Regulation | No |
| New Position of the Authorities | No |
| Evolution of Expert’s Interpretation | Yes |
Regulatory Template
Material changes
Based on the evolution of the local expert’s interpretation, the approach to activities by an foreign credit institution directed at consumers on Spanish territory has been slightly eased. While such activities were considered as a Grey Zone/NO up to now, even if performed on a consumer’s request, they are now qualified as Grey Zone. Local experts are of the opinion that it may be tolerated that foreign unlicensed credit institutions offer consumer or mortgage credits on Spanish territory upon a consumer’s request, but the Bank must be aware that credit activities involving consumers are subject to increased scrutiny by the Spanish authorities. If such activities are performed at all, a very careful approach is recommended. Also, for certain activities (e.g. mortgage credit intermediation), registration requirements might apply. It has to be kept in mind that in addition to the foregoing, the risk of local consumer protection law found to be applicable to a credit contract may in certain scenarios be high.
Non-material changes
Some content has been explained more in detail and/or reworded to provide more clarity and align the content with the latest Private Banking Manual.
For more information, please contact us: info@brpsa.com
Geneva, March 4th 2024