The EBA’s Product Oversight and Governance (POG) Guidelines, introduced in 2016, were designed to ensure that retail banking products, including loans, mortgages, deposits, and payment services, are developed and distributed with due regard for consumers’ interests, objectives, and characteristics.
The EBA is now revising these Guidelines to reflect several key regulatory developments: the 2024 EBA report on greenwashing; new ESG-related requirements under the Capital Requirements Directive (CRD) and Capital Requirements Regulation (CRR); recent amendments to the Unfair Commercial Practices Directive (2005/29/EC); and the extension of the EBA’s remit to consumer credit under the Consumer Credit Directive (2008/48/EC).
The European Association of Co-operative Banks (EACB) welcomes the opportunity to respond to the draft revision of the EBA Guidelines on Product Oversight and Governance (POG).
While acknowledging the EBA’s mandate to update these Guidelines, the EACB wishes to highlight key points:
- Support for a broader scope
The EACB welcomes the inclusion of non-bank creditors as per the Consumer Credit Directive (EU 2023/2225), promoting fair competition and consumer protection. We also recommend explicitly covering all credit agreements under the Mortgage Credit Directive (2014/17/EU) for clarity.
- Avoid unnecessary complexity
We advise limiting changes to those strictly necessary under Article 74(1) and 76(1) CRD, to avoid added complexity and ensure legal certainty.
- Application timeline
The revised Guidelines should apply no earlier than 11 January 2027, aligned with ESG risk management timelines under EBA/GL/2024/05.
- Clarification on ESG characteristics
Clearer definitions of ESG characteristics for products within the scope of these EBA guidelines, especially for those where such characteristics are less evident, such as payment transactions or deposit business.
- Third-party arrangements
Concerns remain on Chapter 6’s shift from ‘outsourcing’ to broader ‘third-party arrangements’, which may increase burdens and reduce flexibility for banks, especially regarding short-term or new service providers