The European Commission has published two draft delegated regulations (each a "Delegated Regulation") supplementing the recast Insurance Distribution Directive (Directive 2016/97/EU). Feedback is sought on both draft documents before 17 August 2017.
The first Delegated Regulation concerns information requirements and conduct of business rules applicable to the distribution of insurance-based investment products. The Delegated Regulation aims to specify the criteria and practical details for the application of the rules on conflicts of interest, on inducements and on the assessment of suitability and appropriateness.
The second Delegated Regulation concerns product oversight and governance ("POG") requirements for insurance undertakings and insurance distributors. The Delegated Regulation specifies the criteria and practical details for the application of the POG rules introduced by the recast Directive, which are intended to ensure that all insurance products for sale to customers meet the needs of their specific target market. The Delegated Regulation requires manufacturers to maintain, operate and review appropriate governance arrangements for all newly developed insurance products and for existing insurance products which have undergone significant adaptations. Distributors are required to obtain from the manufacturer all information required to understand the product and the identified target market, and to distribute the product in accordance with the best interests of the customers.
To view the first Delegated Regulation in full please click here.
To view the second Delegated Regulation in full please click here.