EIOPA consults on conflicts in investment-based insurance: EIOPA is consulting on conflicts of interest in the sales of investment-based insurance products. The Commission has asked it to provide advice on:
- appropriate criteria for determining the types of conflict of interest whose existence may damage the interests of the customers or potential customers of an insurance intermediary or insurance undertaking;
- the steps that insurance intermediaries or insurance undertakings might reasonably be expected to take to identify, prevent, manage and disclose conflicts of interest when carrying out insurance distribution activities. Again, it takes its lead from the current MiFID Implementing Directive; and
- any appropriate systems and controls over remuneration and commission that may cause conflicts.
EIOPA considers the provisions in the current Markets in Financial Instruments Directive (MiFID) and accompanying legislation and guidelines, in particular the Level 2 Implementing Directive, are broadly suitable for investment-based insurance products, but suggests some adaptations to wording. It also considers certain provisions of the existing MiFID should carry over to IMD2. It asks for comments by 1 December. (Source: EIOPA Consults on Conflicts in Investment-Based Insurance)