Credit intermediation has become, over the last decade, one of the pillars of households’ access to bank financing. More than half of the credit agreements concluded in Portugal currently go through a credit intermediary (CI), a phenomenon that has increased the systemic relevance of this channel and imposed new demands on the regulatory framework.
It was in this context that the Bank of Portugal (BdP), in its 2024 Conduct Supervision Report, announced its intention to present to the legislator a proposal for a deep revision of the Legal Framework for Credit Intermediaries (RJIC), approved by Decree-Law No. 81-C/2017, of 7 July.
The stated objective is: to reinforce transparency, promote the comparability of proposals presented to consumers, invest in the qualification of the actors involved, and make the supervision model more effective.
However, the measures advanced by the supervisor indicate a structural transformation whose operational, economic and competitive impacts justify detailed legal analysis.
I. On the apparent link between this reform and the European agenda (Directive (EU) 2023/2225):
The revision of the RJIC appears aligned with the transposition of Directive (EU) 2023/2225, which reshapes the European consumer credit regime. In our view, the regulator intends to harmonize the RJIC with the new requirements relating to (i) strengthening pre-contractual information, (ii) stricter advertising rules, (iii) increased conduct obligations and (iv) enhanced consumer protection.
The convergence with this European framework may indicate that the RJIC reform will not be merely incremental, but structural and systemic.
II. The regulatory diagnosis: three central weaknesses
The BdP identifies three essential problems in the current regime:
(i) Opacity and bias in the offer
Although many CIs collaborate with several entities, the client does not always receive comparable proposals. In some cases, the selection may be influenced by the commission rather than the solution most advantageous to the consumer.
(ii) Insufficiently transparent
The criteria used by CIs to choose the proposals presented are not fully transparent, undermining the duty of loyalty and market trust.
(iii) A heavy and inefficient supervision model
The current size of the sector makes it difficult to supervise thousands of CIs, requiring a more objective, digital, and evidence-based model.
III. The main measures announced by the Bank of Portugal
The Bank of Portugal has already indicated the main pillars of the forthcoming RJIC revision, pointing to a transversal reinforcement of the requirements applicable to the sector.
Among the measures announced, the emphasis on transparency stands out, with the obligation to present up to five comparable proposals and the standardization of consumer information models, as well as the definition of objective and auditable referenciation criteria aimed at mitigating conflicts of interest.
The remuneration regime is expected to become clearer and more restrictive, requiring disclosure of commissions and prohibiting remuneration in kind or remuneration indexed to terms or interest rates.
Training plays a central role, becoming mandatory both at the initial stage and on an ongoing basis.
On the side of credit institutions, a strengthening of supervisory and control duties over CIs is foreseen, with stricter due diligence, regular audits, and continuous monitoring, although the supervisor states it does not intend to turn banks into extensions of its own role.
Finally, the reform incorporates a vector of administrative simplification, with reduced formalism in registrations and rationalization of required information.
IV. Our view on the foreseeable legal and economic impact
The RJIC revision will bring significant impacts across the entire ecosystem.
For Credit Intermediaries, a clear increase in compliance obligations is expected, along with a greater need to document objective criteria, additional costs for continuous training, and a more rigid commercial performance, accompanied by reinforced dependence on credit institutions.
For Banks, the new regime will entail more intensive supervision, more demanding due diligence, frequent audits, and technological investment to ensure traceability, raising regulatory risk and most likely leading to a reduction in the number of intermediaries they work with.
At market level, the combined effect of these measures may translate into greater uniformity, possibly higher costs for consumers, operator concentration, and a slowdown of the intermediation channel, with reduced diversity and innovation.
We therefore understand that a poorly calibrated regulatory reinforcement may compromise competitive balance and consumers’ access to credit.
In conclusion: The BdP proposal is not yet finalized, and no official timetable exists. Once concluded, it may be sent to the Government, which will decide whether to open a legislative process.
This RJIC revision will be one of the most relevant regulatory reforms in the Portuguese financial sector, aiming to protect consumers, reinforce transparency, and increase trust in intermediation channels.
However, the legislator must carefully calibrate the regime to avoid:
- reduction of competition,
- exit of operators,
- excessive concentration,
- increased costs for consumers,
- reduced commercial autonomy of CIs,
- increased friction between banks and intermediaries.
In our view, the challenge is clear: strengthen the system without making it unworkable.
Belzuz Abogados, S.L.P. remains attentive and continues committed to closely monitoring legislative and regulatory developments that impact our clients.