Transparency of information

The main objective of the market conduct supervision of Banco de Portugal in retail financial markets is to enhance transparency and accuracy of information disclosed to bank customers, minimising its asymmetries – institutions usually have a better understanding of the financial products and services – and incompleteness – the nature of those products and services makes it difficult to accurately evaluate the respective cost and/or return as well as associated risks.

Pre-contractual information

In order to make better-informed decisions as far as financial products and services are concerned, bank customers must be able to analyse in advance the respective terms and conditions. Pre-contractual information should be clear, complete, accurate and transparent, allowing customers to properly evaluate the risks and compare all the available alternatives.

Price lists

Credit institutions must also inform their customers about general terms and conditions of the financial products and services provided.

The interest rate on financial products offered by institutions is usually the most apparent component of the final price. However, other price items are increasingly important, such as fees and commissions, under a variety of designations, values, timing and collection procedures.

Notice of Banco de Portugal No 1/95 establishes that all credit institutions shall display, in a well identified spot with open access and in a clear and easily understandable language, information on the price list (namely on interest rates, fees and commissions).