(This note is not part of the Instrument and does not purport to be a legal interpretation.)

The purpose of these Regulations is to give effect to the main provisions of Directive 2002/65/EC of the European Parliament and of the Council of 23 September 2002 concerning the distance marketing of consumer financial services and amending Council Directive 90/619/EEC and Directives 97/7/EC and 98/27/EC. The Regulations apply to the marketing and supply of financial services to consumers under organised distance marketing schemes. For the purposes of the regulations a consumer is regarded as an individual who is acting outside his or her trade business or profession and financial service includes any financial product or service of a banking, credit, insurance, personal pension, investment or payment nature. Key provisions deal with the information which a consumer must be given before entering into a contract; the consumer's right to cancel a range (but not all types) of contracts once entered into; obligations on providers of payment cards; the prohibition of the provision of unsolicited financial services to consumers and restrictions in relation to unsolicited communications. Provision is also made for sanctions and enforcement.