Łukasz Machalski, Director of the Legal Department at the UKNF, took part in a panel titled ‘Banks' information obligations under EU law – consequences of the CJEU ruling C-471/24 for the financial market’, where the speakers discussed the meaning of the most recent CJEU case-law for market practice and disputes over mortgage loans. The panel was organised by the Responsible Finance Club at the European Financial Congress.

In his speech, Łukasz Machalski has pointed out that information obligations towards borrowers are fulfilled correctly, which is confirmed by the existing case-law. As he has indicated, the process of granting a mortgage loan involves many stages and includes provision of various information to clients and an opportunity to learn about key features of the product and risks related to a variable interest rate. It is, therefore, difficult to assume that during that process a borrower is unable to comprehend the nature of the liability and is unaware that the interest rate of the loan may change during the loan term.

The CJEU’s judgment confirms the possibility of applying a benchmark, for instance WIBOR, as an element of variable interest rates and clearly indicates that the bank is not required to inform clients about the method of benchmark provision. For a client to understand the nature of the liability assumed, what is vital is how the interest rate of the loan may change, not the method of providing the benchmark as such.

During his contribution, Łukasz Machalski has emphasised the need to analyse more broadly the causes of court disputes over long-term financial liabilities. In this context, he has indicated that in fact issues related to compliance with information requirements towards clients or to the level of clients’ understanding of financial products are not actual causes.