The European Commission’s proposal to recast the Insurance Mediation Directive (IMD2) has been applauded by Mr Bernardino, chairman of the European Insurance and Occupational Pensions Authority (EIOPA). In a speech given on 4 December 2012, Mr Bernardino put forward the view that in order for IMD2 to rebuild consumer confidence, it must fit within a regulatory regime that allows for effective supervision at national and European level, while at the same time having regard for proportionality in relation to long term goals and objectives.

In terms of “conflicts of interest”, Mr Bernardino argued for the introduction of a separate article in IMD2 on “conflicts of interest” as well as a general duty of care. Mr Bernardino also re-emphasised that sufficient knowhow and understanding of products being sold is also required from distributors of products, particularly having regard to consumer protection and also taking into account recent EIOPA publications on industry training standards.