Reminder for Serbian Banks: Do not Forget to Submit the First Semi-Annual Advertising Plan

June 08, 2019

Reminder for Serbian Banks: Do not Forget to Submit the First Semi-Annual Advertising Plan

June 08, 2019

Miloš Velimirović

Miloš Velimirović

Partner

Katarina Živković

Katarina Živković

Senior Associate

The Decision on Detailed Conditions of Financial Services Advertising (“Official Gazette of the Republic of Serbia”, no 15 dated March 8th, 2019) (hereinafter the “Decision”) has entered into force, thus the banks and the other payment services providers are obliged to harmonize their activities with respective Decision. Hence, the banks and the other payment services providers will be obliged to advertise their services in line with the mandatory manner stipulated under the Decision, provided that they have previously informed the National bank of Serbia on their advertising plan.

  1. Who is targeted by the Decision?

Pursuant to the Decision the: 1) banks, 2) financial lessors, and 3) payment services providers or electronic money issuers other than a bank (as defined under the law governing payment services), when advertise financial services (analysed under Item 2 hereof), shall advertise them exclusively in accordance with the previously determined and dully notified advertising plan.

Bearing in mind a very broad definition of the payment services provider stipulated under Law on Payment Services, which in this term includes: 1) bank, 2) institution of electronic money, 3) payment institution, 4) National bank of Serbia, 5) Treasury or other public authorities in the Republic of Serbia, or 6) public postal operator based in the Republic of Serbia (established in accordance with the law governing postal services), one may conclude that all foregoing entities are targeted by the Decision.

  1. Which services have to be advertised in accordance with the Decision?
  • The financial services, such as providing of loans, deposit services, issuance and usage of credit cards, current account opening and maintenance, authorized overdraft facility when provided by: 1) banks, 2) financial lessors, and 3) payment services providers or electronic money issuer other than a bank.
  • Other services provided by the bank in accordance with Law on Banks – payment services, securities transactions, broker-dealer transactions and other transactions defined in Article 4 of the Law on Banks.
  1. Advertising Obligations
  • A financial services provider shall submit to the National Bank of Serbia a semi-annual advertising plan containing the data on financial services (products) and information on the manner of advertising of respective services, i.e. the plan shall specify whether the services will be advertised in electronic media, print media, online media, etc.
  • If a bank advertises a new product which is declared risky according to the Decision on Risk Governance – the notification and documents submitted to the National Bank of Serbia in line with the foregoing decision, shall be followed by the information on the proposed manner of advertising,e. whether the product will be advertised in the electronic media, print media, online media, through outdoor media, through indoor advertising and/or direct advertising) and by the advertising message proposal.

In the cases under items a) and b), the first semi-annual advertising plan related to the period as of 1 January until 30 June of the current year, shall be submitted no later than 15 January of the current year, while the second semi-annual plan (for the period as of 1 July until 31 December of the current year) shall be submitted by 15 July of the current year. Bearing in mind that the Decision came into force on 1 April 2019, banks and other financial services providers shall for the first time submit their semi-annual advertising plans for the period as of 1 July 2019 until 31 December 2019 by 15 July 2019.

  1. Essentials of the Semi-Annual Plan

As already explained above, in the case referred to in the Item 3 a), the bank must provide the National Bank of Serbia with information on the financial service (the product) which will be advertised and the manner in which this financial service will be advertised (for example, the possibility of opening a student current account will be advertised through internet advertising).

In the case referred to in item 3 b), the bank must provide the National Bank of Serbia with the information on the financial service (the product) which will be advertised, the manner in which the financial service will be advertised and lastly with the proposal of the advertising message, as well as with the notifications and documentation that have to be delivered according to the Risk Management Decision.

This text is for informational purposes only and should not be considered legal advice. Should you require any additional information, feel free to contact us.

Contact:

Miloš Velimirović , Partner
milos.velimirovic@sog.rs

Katarina Živković, Senior Associate
katarina.zivkovic@sog.rs

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