Tag Archive for: Agent

• Payal Agarwal, Archisman Bhattacharjee and Manisha Ghosh | finserv@vinodkothari.com

Highlights

• Mis-selling, among others, will include selling an unsuitable financial product; consequences include compensation                                                                                                                               
• Prohibition on Compulsory Bundling, eg., sale of insurance policy along with a loan
• Explicit consent, wherever required, to be based on unambiguous affirmative action
• Bank to do a due-diligence of a third party financial product that it markets, to avoid reputational risk
• DSAs and DMAs of banks to come for tighter scrutiny; with undertaking for compliance with bank’s code and disciplinary action upon violation
• Pricing difference, if any, between directly marketed bank products and indirectly (through agents) to be disclosed
• Banks to take after-sale feedback from customers, and make necessary amendments in selling practices
• Dark patterns not be used by regulated entities; periodic audit mandated
• Controls over incentives favouring mis-selling