S.L. 378.12 Art. 5Obligation to comply with regulations. Obligation of credit intermediary towards consumers.

(1) A creditor shall take all necessary steps to ensure full compliance with these regulations.

(2) For the purpose of this Part, unless otherwise provided, the obligations of the creditor shall equally apply to a credit intermediary where a credit intermediary presents or offers credit agreements to consumers, assists consumers by undertaking preparatory work in respect of credit agreements, or concludes credit agreements with consumers on behalf of the creditor.

(3) Where a credit intermediary participates or intends to participate in terms of sub-regulation (2), a credit intermediary shall:

(a) indicate in advertising and documentation intended for consumers, the extent of his powers, in particular whether he works exclusively with one or more creditors or as an independent broker;

(b) disclose the fee, if any, payable by the consumer for his services, which fee shall be agreed in writing or on a durable medium between the consumer and the credit intermediary before the conclusion of the credit agreement; and

(c) disclose the fee, if any, payable by the consumer to the credit intermediary for his services to the creditor for the purpose of calculating the annual percentage rate of charge.

(4) Regulations 6 to 9 shall not apply to suppliers of goods or services acting as credit intermediaries in an ancillary capacity. This is without prejudice to the creditor’s obligation to ensure that the consumer receives the pre-contractual information referred to under regulations 7 and 8.