Alert on Fee and Commission Transparency in Financial Institutions
The AFA announces that Andorran financial institutions may set their fees freely while maintaining transparency. Deadlines have been set for communicating commissions to clients.
The Andorran Financial Authority (AFA) has issued a technical notice stating that operating institutions within the Andorran financial system may freely set the fees or charges for services provided to their clients, while upholding the principles of transparency and information.
Two timeframes are established:
Measures to be implemented as of April 9, 2020:
- Individual and express communication to clients of the fees, commissions, and costs actually being applied in the following cases:
- Increase or modification of a fee, commission, or cost.
- First-time charge of a fee, commission, or cost.
- Acquisition of a new service or product.
Measures to be implemented no later than April 9, 2021:
- Individual and express communication to clients of the fees, commissions, and costs actually being applied.
- Clients will have a minimum period of two (2) months during which the fee, commission, or cost will not apply, except if it is reduced, in which case it will take effect immediately.
You can view the full notice at the following link: [AFA Technical Notice]
The VIRTUS ADVOCATS team keeps you informed and is fully available to answer any questions or inquiries you may have.