Article 425

• 1

  Prior to the provision of a financial service concerning a financial product, which is subject to a prohibition on the provision or receipt of certain commissions under Article 4:25a(1)(b), the financial service provider shall inform the consumer or, in the case of insurance, the client about:

  • a.

    The nature and scope of services;

  • b.

    How the financial services provider is remunerated;

  • c.

    The cost of the service paid by the consumer or, in the case of insurance, client;

  • d.

    the interests of the financial services provider that may affect the provision of services to the consumer or client; and

  • e.

    subjects to be designated by order in council that may be relevant to the adequate assessment of the service by the consumer or client.

• 2

  Prior to the provision of a financial service regarding a financial product, other than products to which the first paragraph applies, the intermediary or adviser, who does not also offer the recommended financial product, shall inform the consumer or, if it is insurance, the client about:

  • a.

    The nature and scope of services;

  • b.

    the manner in which the intermediary or adviser, who does not also offer the recommended financial product, is remunerated, as well as in cases to be determined by or pursuant to general order in council, the amount of the remuneration or fee;

  • c.

    the interests of the intermediary or adviser, who does not also offer the recommended financial product, which may affect the service provided to the consumer or client; and

  • d.

    Other subjects to be designated by order in council.

• 3

  By or pursuant to a general order in council, rules may be laid down regarding the form, content, time and manner of providing the information referred to in the first and second paragraphs.

• 4

  If several financial service providers are involved in the provision of a financial service, it may be determined by or pursuant to an order in council who is under the obligation to provide the information referred to in the first or second paragraph.