121 Amendments of Aurore LALUCQ related to 2023/0167(COD)
Amendment 109 #
Proposal for a directive
Recital 3
Recital 3
(3) Third party payments, such as fees, commissions or any monetary or non- monetary benefits paid to or received by investment firms and insurance undertakings and intermediaries by or from persons other than the client or customer, also termed as ‘inducements’, play a significant role in the distribution of retail investment products in the Union. The existing rules designed to manage conflicts of interests in Directives (EU) 2014/65 and (EU) 2016/97, including restrictions on and transparency around the payments of inducements, have not proven sufficiently effective in mitigating consumer detriment and have led to different levels of retail investor protection across product segments and distribution channels. It is therefore necessary to further strengthen the investor protection framework to ensure that retail clients’ best interests are protected uniformly across the Union. In light of the potential disruptive impact caused by the by introduction ofing a full prohibition of inducements, it is appropriate to have a staged approach and first strengthen the requirements around the payment and receipt of inducements to address the potential conflicts of interest and ensure better protection of retail investors and, at a second stage, to review the effectiveness of the framework, and propose alternative measures in line with Better Regulation rules, including a potential ban on inducements, if appropriaten the payment of inducements. Investment firms, insurance undertakings and insurance intermediaries should only be remunerated through charges payable by or on behalf of the client, and shall not solicit or accept any other third-party payments or benefits in relation to the services that it provides to clients.
Amendment 115 #
Proposal for a directive
Recital 4
Recital 4
(4) In order to remove any consumer detriment as a consequence of the payment and receipt of inducements for non-advised sales, it is also appropriate to prohibit the payment and receipt of such inducements. In the case of Directive (EU) 2014/65, such prohibition would cover the execution or reception and transmission of orders and in the case of Directive (EU) 2016/97, non- advised sales. To avoid restricting issuers’ ability to raise funding, that prohibition should not apply to payments in relation to underwriting and placement services provided to an issuer, where the investment firm also provides an execution of order or reception and transmission of order service to an end-investor. Furthermore, investment advice is often combined with the provision of an execution or reception and transmission of order service. In such cases, the main service being investment advice, the prohibition should not apply to the execution or reception and transmission of order service relating to one or more transactions of that client covered by that advice. Minor non-monetary benefits which do not exceed 100 euros or are of a scale and nature that they could not be judged to impair compliance with the duty to act in the best interest of the retail investor should be allowed, to the extent that they are clearly disclosed.
Amendment 116 #
Proposal for a directive
Recital 5
Recital 5
Amendment 124 #
Proposal for a directive
Recital 7
Recital 7
Amendment 129 #
Proposal for a directive
Recital 9
Recital 9
Amendment 161 #
Proposal for a directive
Recital 20
Recital 20
(20) The pricing process under Directives 2009/65/EC and 2011/61/EU should ensure that costs borne by retail investors are justified and proportionate to the characteristics of the product, and in particular to the investment objective and strategy, level of risk and expected returns of the funds, so that UCITS and AIFs deliver Value for Money to investors. UCITS and AIFs management companies should remain responsible for the quality of their pricing process, and assess and review on an annual basis whether their fees are justified and proportionate or not, and take corrective measures if needed such as reviewing the product’s fees and charges or introducing temporary fee waivers. In particular, they should ensure that costs are comparable to market standards, including by comparing the costs of funds with similar investment strategies and characteristics available on publicly available databases. However, to make the pricing process more objective and to equip UCITS and AIFs management companies, and competent authorities with a tool allowing for an efficient comparison of costs among investment products from the same product type, ESMA should develop benchmarks, based on data related to the cost and performance of investment products that ESMA receives as part of the supervisory reporting, against which an assessment of Value for Money can be carried out, in addition to the other criteria included in the pricing process of UCITS and AIFs management companies. Considering the Commission’s priority to avoid unnecessary administrative burdens and to simplify reporting requirements, those benchmarks should build on existing data from public disclosures and supervisory reporting, unless additional data are exceptionally necessary. Investment funds offering poor Value for Money or deviating from ESMA's benchmarks should not be marketed to retail investors unless further assessment has established that the product nevertheless offers Value for Money. The assessment and the measures taken should be documented and provided to competent authorities upon their request. . These assessment should also be published and made available to investors in relevant disclosure documents.
Amendment 165 #
Proposal for a directive
Recital 21 a (new)
Recital 21 a (new)
(21a) Retail investors should be able to access easily a reliable and independent source information to make an informed investment decision based upon a comprehensive comparison of the different investment options available in the EU market. While on-line tools exist already in some Member States, their availability varies among Member State. A fund calculator and comparator operated by ESMA using harmonised data in a standardised format provided by manufacturers and persons selling investment products allows for a reliable and accurate comparison of products and computations based on all relevant costs and fees charged at any step of the process. This tool will facilitate the participation of retail investors in capital markets through a more convenient, transparent and reliable source for information regarding the risk and return on investment and value for money of each commercialised product.
Amendment 166 #
Proposal for a directive
Recital 21 b (new)
Recital 21 b (new)
(21b) To be able to provide a comprehensive overview of the market the fund comparator, to be developed by ESMA, should allow investors to view and compare the nature and features of different products, including the costs, past performance and risk profile of the product. In order to provide specific quantitative information to the retail investor, the fund calculator should allow investors to compute the value and total costs of a fund on the basis of envisaged investment amount and holding period. To ensure greater usability, the information within it should be presented in a manner that is both understandable and concise while remaining easy to use for the retail investor. It should present the methodology and data sources in a clear and transparent manner. To limit, to the greatest extent possible, costs related to the new reporting obligations and to avoid unnecessary duplication, data sets should as far as possible be based on disclosure and reporting obligations stemming from EU law.
Amendment 167 #
Proposal for a directive
Recital 22
Recital 22
(22) Knowledge and competence of staff are key to ensuring good quality advice. The standards of what is considered necessary vary significantly between advisors operating under Directive 2014/65/EU, Directive (EU) 2016/97 and under non-harmonised national law. To improve the quality of advice and to ensure a level playing field across the EU, strengthened minimum common standards on the necessary knowledge and competence requirements should be laid down. That is particularly relevant given the increased complexity and continuous innovation in the design of financial instruments and insurance-based investment products, and the increasing importance of sustainability-related considerations. Member States should require investment firms, and insurance and reinsurance distributors, to ensure that natural persons giving investment advice on behalf of the investment firm or as insurance intermediaries, and the employees concerned of insurance undertakings and insurance intermediaries, possess the knowledge and competence that is necessary to fulfil their obligations. To provide assurance to clients, customers and competent authorities that the level of knowledge and competence of such natural persons and insurance intermediaries and the employees of insurance undertakings and insurance intermediaries meet the required standards, such knowledge and competence should be proven by a certificate. Regular professional development and training are important to ensure that the knowledge and competence of staff advising on or selling investment products to clients, or insurance-based investment products to customers, is maintained and updated. To that end, it is necessary to require that natural persons giving investment advice follow a minimum number of hours per year of professional training and development, part of which shall be dedicated to sustainability issues and that they prove the successful completion of such training and development by a certificate.
Amendment 173 #
Proposal for a directive
Recital 27
Recital 27
(27) Costs, and associated charges and third-party payments linked to investment products can have a great impact on expected returns. The disclosure of such costs and associated charges and third-party payments are a key aspect of investor protection. Retail investors should be presented with clear information on costs, and associated charges and third-party payments, in good time prior to taking an investment decision. To enhance comparability of such costs, and associated charges and third-party payments, such information should be provided in a standardised manner. Regulatory technical standards should specify and harmonise the content and format of disclosures relating to such costs, and associated charges and third- party payments including explanations that investment firms should provide to retail clients, in particular as regards the third- party payments.
Amendment 175 #
Proposal for a directive
Recital 28
Recital 28
(28) To further increase transparency, retail clients and customers should receive a periodic overview of their investments. For that reason, firms that provide investment services together with a service of safekeeping and administration of financial instruments, or insurance intermediaries and insurance undertakings distributing insurance-based investment products, should provide an annual statement to their retail clients and customers which should include an overview of the products those clients and customers hold, of all costs, and associated charges and third-party payments, and of all payments, including dividends and the interests paid and received by the client and customer over a period of one year, together with an overview of the performance of those financial products. That annual statement should enable retail investors to get a better understanding of the impact of those elements on the performance of their portfolio. For investment services that only consist of the reception, transmission and execution of orders, the annual statement should contain all costs, associated charges and third-party payments paid in connection with the services and the financial instruments. For services that only consist of safekeeping and administration of financial instruments, the annual statement should contain all costs, associated charges and payments received by the client in relation to the services and the financial instruments. For all those services, the service provider should provide the retail client upon request with a detailed breakdown of that information per financial instrument. In view of the long- term characteristics of insurance-based investment products which are often used for retirement purposes, the annual statement for such products should contain additional elements, including adjusted individual projections of the expected outcome at the end of the contract, or recommended holding period and a summary of the insurance cover.
Amendment 186 #
Proposal for a directive
Recital 36
Recital 36
(36) A wide diversity of financial instruments can be offered to retail investors, with each financial instrument entailing different levels of risks of potential losses. Retail investors should therefore be able to easily identify investment products that are particularly risky. It is therefore appropriate to require that investment firms, insurance undertakings and insurance intermediaries identify those investment products that are particularly risky and include, in information transmitted to retail clients and customers, including marketing communications, warnings on those risks. To assist investment firms, insurance undertakings and insurance intermediaries in identifying such particularly risky products, ESMA and EIOPA should issue guidelineregulatory technical standards on how to identify such products, taking due account of the different types of existing investment products and insurance-based investment products. To harmonise such risk warnings across the EU, ESMA and EIOPA should submit technical standards as regards the content and format of such risk warnings. Member States should empower competent authorities to impose the use of risk warnings for specific investment products and, where the use or absence of use of those risk warnings throughout the EU would be inconsistent or would create a material impact in terms of investor protection, ESMA and EIOPA should have the power to impose the use of such warnings by investment firms throughout the EU.
Amendment 202 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2014/65/EU
Article 4 – paragraph 1 – point 68 a (new)
Article 4 – paragraph 1 – point 68 a (new)
(68a) ‘Crypto Asset Services Provider’ means a crypto asset services provider as defined in Article 3, paragraph 1, point 15 of Regulation (EU) 2023/1114
Amendment 203 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2014/65/EU
Article 4 – paragraph 1 – point 68 b (new)
Article 4 – paragraph 1 – point 68 b (new)
(68b) ‘Crypto-asset service’ means crypto-asset service as defined in Article 3, point 16 of Regulation (EU) 2023/1114
Amendment 214 #
Proposal for a directive
Article 1 – paragraph 1 – point 8 – point c
Article 1 – paragraph 1 – point 8 – point c
Directive 2014/65/EU
Article 16 – paragraph 3 a
Article 16 – paragraph 3 a
3a. An investment firm or crypto asset service provider shall maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps designed to ensure that marketing communications and practices comply with the obligations set out in Article 24c.;
Amendment 216 #
Proposal for a directive
Article 1 – paragraph 1 – point 8 – point c a (new)
Article 1 – paragraph 1 – point 8 – point c a (new)
Directive 2014/65/EU
Article 16 – paragraph 6 a (new)
Article 16 – paragraph 6 a (new)
(ca) the following paragraph 6a is inserted: ‘6a. Investment firms providing investment advice and portfolio management services shall be required to report to national competent authorities of its home Member State on an annual basis: (i) the number of financial instruments it considers when providing advice, with a distinction between instruments issued or provided by entities with close link to the investment firm and those provided by non-affiliated third-party providers; (ii) the ratio of financial instruments sold to clients that are issued or provided by entities with close links to the investment firm and those provided by non-affiliated third-party providers; National competent authorities shall forward this information to ESMA without undue delay.
Amendment 219 #
Proposal for a directive
Article 1 – paragraph 1 – point 8 – point d
Article 1 – paragraph 1 – point 8 – point d
Directive 2014/65/EU
Article 16 – paragraph 7 a – subparagraph 2
Article 16 – paragraph 7 a – subparagraph 2
In all cases, complaints shall be registered and complainants shall receive replies within 4015 working days.; Replies shall be written in the language in which complaints were made.
Amendment 259 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – subparagraph 4
Article 16–a – paragraph 1 – subparagraph 4
When a financial instrument deviates from the relevant benchmark referred to in paragraph 9, the investment firm shall inform the competent authority of the investment firm and perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If justification and proportionality of costs and charges cannot be demonstratedfor the deviation cannot be demonstrated to the competent authority of the investment firm, the financial instrument shall not be approved by the investment firm´.
Amendment 271 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 2 – point a
Article 16–a – paragraph 2 – point a
(a) details of costs and charges of the financial instrument, including any distribution costs that are incorporated into costs of financial instrument, including third-party payments;.
Amendment 316 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 5 – subparagraph 1
Article 16–a – paragraph 5 – subparagraph 1
An investment firm which offers or recommends financial instruments falling under the definition of packaged retail products in accordance with Article 4(1) of Regulation (EU) No 1286/2014 shall report to its home competent authorities details of the costs of distribution, including any costs related to the provision of advice or any connected third-party payments.
Amendment 326 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 6 – subparagraph 1 – point a
Article 16–a – paragraph 6 – subparagraph 1 – point a
(a) details of costs and charges of any financial instrument destined for retail investors, including any distribution costs that are incorporated into costs of financial instrument, including third- party payments;.
Amendment 336 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 7 – introductory part
Article 16–a – paragraph 7 – introductory part
7. An investment firm shall document all assessments made and shall, upon request, provide such assessments to a relevant competent authority, including the following:
Amendment 347 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 7 a (new)
Article 16–a – paragraph 7 a (new)
7a. The documentation resulting from the product approval process and any other assessment made by an investment firm in accordance with this Article should be made publicly available in an electronic format on the website of the investment firm.
Amendment 399 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 13 (new)
Article 16–a – paragraph 13 (new)
13. ESMA shall organise and conduct a peer review, at least once every two years, in cooperation with national competent authorities regarding the implementation of the obligations described in this Article.
Amendment 402 #
Proposal for a directive
Article 1 – paragraph 1 – point 11 a (new)
Article 1 – paragraph 1 – point 11 a (new)
Directive 2014/65/EU
Article 23 – paragraph 1
Article 23 – paragraph 1
Article 23 is amended as follows: Paragraph 1 is replaced by the following: ‘1. Member States shall require investment firms to take all appropriate steps to identify and to prevent or manage conflicts of interest between themselves, including their managers, employees and tied agents, or any person directly or indirectly linked to them by control and their clients or between one client and another that arise in the course of providing any investment and ancillary services, or combinations thereof, including those caused by the receipt of inducements from third parties or by the investment firm’s own remuneration and other incentive structures.
Amendment 406 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2014/65/EU
Article 24 – paragraph 1 a
Article 24 – paragraph 1 a
Amendment 442 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point e – point i – indent 2 – introductory part
Article 1 – paragraph 1 – point 12 – point e – point i – indent 2 – introductory part
Directive 2014/65/EU
Article 24 – paragraph 4 – point a
Article 24 – paragraph 4 – point a
– in point (a), the point (ii) is deleted and the following points (iv) and (v) are added:
Amendment 448 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g
Article 1 – paragraph 1 – point 12 – point g
Directive 2014/65/EU
Article 24 – paragraph 5 c – subparagraph 1
Article 24 – paragraph 5 c – subparagraph 1
Member States shall ensure that investment firms display appropriate warnings in information materials, including marketing communications, provided to retail clients or potential retail clients, to alert on the specific risks of potential losses carried by particularly risky financial instruments. including losses related to their sustainability characteristics, such as having significant negative impact on Principal Adverse Impact indicators as indicated in Regulation (EU) 2019/2088 (Sustainable Finance Disclosure Regulation)
Amendment 452 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g
Article 1 – paragraph 1 – point 12 – point g
Directive 2014/65/EU
Article 24 – paragraph 5 c – subparagraph 2
Article 24 – paragraph 5 c – subparagraph 2
ESMA shall, by [18 months after the entry into force of the amending Directive], develop, and update periodically, guidelinedraft regulatory technical standards on the concept of particularly risky financial instruments taking due account of the specificities of the different types of instruments.
Amendment 457 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g
Article 1 – paragraph 1 – point 12 – point g
Directive 2014/65/EU
Article 24 – paragraph 5c – subparagraph 2
Article 24 – paragraph 5c – subparagraph 2
ESMA shall, by [18 months after the entry into force of the amending Directive], develop, and update periodically, guidelines on the concept of particularly risky financial instruments taking due account of the specificities of the different types of instruments and their sustainability characteristics.
Amendment 468 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point j – point ii
Article 1 – paragraph 1 – point 12 – point j – point ii
(d) the criteria to assess compliance of firms providing investment advice to retail clients, notably those receiving inducement, with the obligation to act in the best interest of their clients as set out in paragraphs 1 and 1a.;
Amendment 469 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point j – point ii
Article 1 – paragraph 1 – point 12 – point j – point ii
Directive 2014/65/EU
Article 24 – paragraph 13 – subparagraph1 – point d a (new)
Article 24 – paragraph 13 – subparagraph1 – point d a (new)
(da) the criteria for assessing financial products in relation to a client's sustainability preferences, along with the procedures for adapting a portfolio or investment product offering to align with a client's sustainability preferences;
Amendment 478 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 1
Article 24a – paragraph 1
1. Member States shall ensure that investment firms, when providing portfolio management or when providing investment advice, do not pay or receive any fee or commission, or provide or are provided with any non-monetary benefit, in connection with the provision of such service, to or by any party except the client or a person on behalf of the client.
Amendment 496 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 3
Article 24a – paragraph 3
Amendment 521 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24a – paragraph 7
Article 24a – paragraph 7
Amendment 529 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24a – paragraph 8
Article 24a – paragraph 8
Amendment 536 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
8a. The European Commission shall adapt the requirements established in Article 16a regarding the pricing process, for investment firms located in a Member State that prohibits the offer or acceptance of fees, commissions or non- monetary benefits from third parties in relation to the provision of insurance advice, or for investment firms that can proof to the Member States' National Competent Authority they do not offer or accept fees, commissions or non-monetary benefits from third parties in relation to the provision of insurance advice. These adapted requirements shall take into account the reduced risk of conflicts of interest and keep in mind the principle of proportionality
Amendment 538 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – title
Article 24b – title
Information on costs, and associated charges and third-party payments
Amendment 539 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 1 – subparagraph 1
Article 24b – paragraph 1 – subparagraph 1
Member States shall ensure that investment firms provide clients or potential clients in good time prior to the provision of any investment services and ancillary services, and in good time prior to the conclusion of any transaction on financial instruments with information, in the required format, on all costs, associated charges and third- party payments related to those services, financial instruments or transactions.
Amendment 541 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 1 – subparagraph 2 – introductory part
Article 24b – paragraph 1 – subparagraph 2 – introductory part
The information on those costs, associated charges and third-party payments shall include all of the following:
Amendment 542 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 1 – subparagraph 2 – point a
Article 24b – paragraph 1 – subparagraph 2 – point a
(a) all explicit and implicit, and associated charges, including all costs and charges relating to the distribution of the financial instrument, and the cost of advice, where relevant, charged by the investment firms or other parties where the client has been directed to such other parties, for the investment services and/or ancillary services provided to the client or potential client;
Amendment 544 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 1 – subparagraph 2 – point c
Article 24b – paragraph 1 – subparagraph 2 – point c
Amendment 547 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 1 – subparagraph 2 – point d a (new)
Article 24b – paragraph 1 – subparagraph 2 – point d a (new)
(da) The information referred to in the second subparagraph, point (a) to (c), shall be accompanied by an appropriate explanation, in a standardised and comprehensible language for an average retail client, on the impact of the costs, charges and any third-party payments on the expected return.
Amendment 549 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 1 – subparagraph 3
Article 24b – paragraph 1 – subparagraph 3
Member States shall ensure that investment firms aggregate the information on all costs and associated charges to enable the client to understand the overall cost, of the financial instruments and the cumulative effect on return of the investment. Member States shall ensure that investment firms express the overall cost in monetary terms and percentages calculated up to the maturity date of the financial instrument or for financial instruments without a maturity date, the holding period recommended by the investment firm, or in the absence thereof, holding periods of 1, 35 and 510 years. Where the client so requests, investment firmsInvestment firms shall inform the clients explicitly about the possibility to ask for an itemised breakdown of the aggregated information of all costs and associated charges and they shall provide such an itemised breakdown at the request of the client.
Amendment 552 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 1 – subparagraph 4
Article 24b – paragraph 1 – subparagraph 4
Amendment 559 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 1 – subparagraph 5
Article 24b – paragraph 1 – subparagraph 5
Where the amount of any costs, associated charges or third-party payments cannot be ascertained prior to the provision of the relevant investment or ancillary service, the method of calculating the amount shall be clearly disclosed to the client in a manner that is comprehensible, accurate and understandable for an average retail client.
Amendment 569 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 2 – subparagraph 1 – point a
Article 24b – paragraph 2 – subparagraph 1 – point a
(a) the relevant format for the provision of any costs, and associated charges and third-party payments, by the investment firm to its retail client or potential retail client, prior to the provision of provision of any investment services, ancillary services, and the conclusion of any transaction on financial instruments;
Amendment 571 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 2 – subparagraph 1 – point aa (new)
Article 24b – paragraph 2 – subparagraph 1 – point aa (new)
(aa) the relevant format for the provision of the annual statement on all costs and associated charges by the investment firms to its retail client.
Amendment 572 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 2 – subparagraph 1 – point b
Article 24b – paragraph 2 – subparagraph 1 – point b
(b) the standard terminology and related explanations to be used by investment firms for the disclosure and calculation of any costs, and associated charges and third-party payments charged directly or indirectly by firms to the client or potential client in connection with the provision of any investment service(s) or ancillary service(s) and the manufacturing and managing of financial instruments to be recommended or marketed to the client or potential client. Explanations related to those costs, and associated charges and third- party payments and their impact on the expected returns, shall ensure that they are likely to be understood by any average retail client without specific knowledge on investments in financial instruments.
Amendment 575 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 2 – subparagraph 1 – point b a (new)
Article 24b – paragraph 2 – subparagraph 1 – point b a (new)
(ba) the methodology for the calculation of costs.
Amendment 591 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 4 – subparagraph 4
Article 24b – paragraph 4 – subparagraph 4
Amendment 592 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 4 – subparagraph 4 a (new)
Article 24b – paragraph 4 – subparagraph 4 a (new)
4a. The annual statement on costs and performance for retail clients shall be presented in an easy-to-understand way for an average retail client. The annual statement shall include a link to the independent online fund calculator and comparator to be developed by ESMA in accordance with Directive 2011/61/EU and Directive 2009/65/EC, including with a standardised alert concerning the impact of costs on investment returns: ‘Check how much you are paying using ESMA’s comparison tool, the costs associated with an investment product can significantly impact your investment returns."
Amendment 593 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 4 – subparagraph 5
Article 24b – paragraph 4 – subparagraph 5
Amendment 595 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 5
Article 24b – paragraph 5
Amendment 596 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24c – paragraph 1
Article 24c – paragraph 1
1. Member States shall ensure that marketing communications are clearly identifiable as such and clearly identify the investment firms or crypto-asset service provider responsible for their content and distribution, regardless of whether the communication is made directly or indirectly by the investment firm.
Amendment 604 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24c – paragraph 2 – subparagraph 2
Article 24c – paragraph 2 – subparagraph 2
All marketing communications shall present in a prominent and concise way, the essential characteristics of the financial instruments, crypto asset service or the investment services and related ancillary services to which they refer.
Amendment 607 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24c – paragraph 2 – subparagraph 3
Article 24c – paragraph 2 – subparagraph 3
The presentation of the essential characteristics of the financial instruments and services included in the marketing communications provided or made accessible to retail or potential retail clients, shall ensure that they can easily understand the key features of the financial instruments or services as well as the costs and main risks associated with them.
Amendment 611 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24c – paragraph 4 – subparagraph 1
Article 24c – paragraph 4 – subparagraph 1
Where a manufacturer of a financial instrument or a crypto-asset service provider prepares and provides a marketing communication to be used by the distributor, the manufacturer shall be responsible for the content of such marketing communication and its update. The distributor shall be responsible for the use of this marketing communication and shall ensure that it is used for the identified target market only and in line with the distribution strategy identified for the target market.
Amendment 612 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24c – paragraph 4 – subparagraph 2
Article 24c – paragraph 4 – subparagraph 2
Where an investment firm or crypto-asset service provider offers or recommends financial instruments which it does not manufacture, organises its own marketing communication, it shall be fully responsible for its appropriate content, update and use, in line with the identified target market and in particular in line with the identified client categorisation.
Amendment 616 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24c – paragraph 5
Article 24c – paragraph 5
5. Member States shall ensure, investment firms and crypto-asset service providers make annual reports to the firm’s management body on the use of marketing communications and strategies aimed at marketing practices, the compliance with relevant obligations on marketing communications and practices under this Directive and on any signalled irregularities and proposed solutions.
Amendment 618 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24c – paragraph 7 –subparagraph 1
Article 24c – paragraph 7 –subparagraph 1
Amendment 621 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24c – paragraph 7 – subparagraph 2
Article 24c – paragraph 7 – subparagraph 2
Such records shall be kept for a period of five years and, where requested by the competent authority, for a period of up to seven years. Those records shall be retrievable by the investment firm or crypto asset service provider upon request of the competent authority.
Amendment 625 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24c – paragraph 8 – point a
Article 24c – paragraph 8 – point a
(a) the essential characteristics of crypto services, financial instrument(s) or investment and ancillary service(s) to be disclosed in all marketing communications targeting retail clients or potential retail clients and any other relevant criteria to ensure that those essential characteristics appear in a prominent way and are easily accessible by an average retail client, regardless of the means of communication;
Amendment 626 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24c – paragraph 8 – point b
Article 24c – paragraph 8 – point b
(b) the conditions with which marketing communications and marketing practices should comply in order to be fair, clear, not misleading, balanced in terms of presentation of advantages, costs and risks, and appropriate in terms of content and distribution channels for the target audience or, where applicable, the target market.
Amendment 629 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24d – paragraph 2 – subparagraph 1
Article 24d – paragraph 2 – subparagraph 1
For the purpose of paragraph 1, Member States shall require investment firms to ensure and demonstrate to competent authorities on request that natural persons giving investment advice to clients on behalf of the investment firm possess and maintain at least the knowledge and competence set out in Annex V and undertake at least 135 hours of professional training and development per year. To ensure that natural persons giving investment advice can adequately identify a client’s individual sustainability preferences and give adequate advice about the sustainability risks of financial instruments, at least 15 hours of this professional training shall be dedicated to sustainability issues. Compliance with the criteria set out in Annex V as well as the yearly successful completion of the continuous professional training and development shall be proven by a certificate.
Amendment 633 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24d – paragraph 2 – subparagraph 1
Article 24d – paragraph 2 – subparagraph 1
For the purpose of paragraph 1, Member States shall require investment firms to ensure and demonstrate to competent authorities on request that natural persons giving investment advice to clients on behalf of the investment firm possess and maintain at least the knowledge and competence set out in Annex V and undertake at least 145 hours of professional training and development per year. Compliance with the criteria set out in Annex V as well as the yearly successful completion of the continuous professional training and development shall be proven by a certificate.
Amendment 643 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Article 1 – paragraph 1 – point 14 – point a
Directive 2014/65/EU
Article 25 – paragraph 2 – subparagraph 1
Article 25 – paragraph 2 – subparagraph 1
Subject to the second subparagraph, when providing investment advice or portfolio management services, the investment firm shall obtain the necessary information regarding the client or potential client’s knowledge and experience in the investment field relevant to the specific type of product or service, that client’s financial situation, including the composition of any existing portfolios, its ability to bear full or partial losses, investment needs and objectives including sustainability preferences, if any, and risk tolerance, so as to enable the investment firm to recommend to the client or potential client the investment services or financial instruments that are suitable for that person, and, in particular, are in accordance with its risk tolerance, ability to bear losses, its sustainability preferences and need for portfolio diversification.
Amendment 660 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Article 1 – paragraph 1 – point 14 – point a
Directive 2014/65/EU
Article 25 – paragraph 3 a (new)
Article 25 – paragraph 3 a (new)
3a. When providing investment advice, the products proposed by the investment firm shall include at least one product that has sustainable investment as its objective as defined in Article 9 of Regulation (EU) 2019/2088, unless the client has explicitly indicated that they do not have any sustainability preferences as defined in Article 2(7) of Delegated Regulation (EU) 2017/565.
Amendment 661 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Article 1 – paragraph 1 – point 14 – point a
Directive 2014/65/EU
Article 25 – paragraph 3 a (new)
Article 25 – paragraph 3 a (new)
3a. When providing investment advice, the products proposed by the investment firm shall include at least one product that aims to make a positive contribution to environmental sustainability as defined in Regulation (EU) 2020/852 unless the client has explicitly indicated that they do not have any sustainability preferences as defined in Article 2(7) of Delegated Regulation (EU) 2017/565.
Amendment 663 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point d
Article 1 – paragraph 1 – point 14 – point d
Directive 2014/65/EU
Article 25 – paragraph 8 – point c a (new)
Article 25 – paragraph 8 – point c a (new)
(ca) the criteria for assessing the alignment of financial products with a client's sustainability preferences and outlining the procedures for tailoring a portfolio or investment product offering to meet a client's sustainability preferences.
Amendment 680 #
Proposal for a directive
Article 1 – paragraph 1 – point 22
Article 1 – paragraph 1 – point 22
Directive 2014/65
Article 88 a
Article 88 a
Member States shall promote measures that support the education of retail clients and prospective retail clients in relation to responsible investment when accessing investment services or ancillary services. Member States shall ensure that all measures that they promote in the field of financial education are independent of any financial service provider. Member States shall fund consumer organisations and independent investor or shareholder organisations that support the support the education of retail clients and prospective retail clients in relation to responsible investment when accessing investment services or ancillary services.
Amendment 695 #
Proposal for a directive
Article 2 – paragraph 1 – point 1 – point c
Article 2 – paragraph 1 – point 1 – point c
Directive (EU) 2016/97
Article 2 – paragraph 1 – point 22
Article 2 – paragraph 1 – point 22
(22) ‘online interface’ means any software, including a website, part of a website, or an application., including a mobile applications;
Amendment 707 #
Proposal for a directive
Article 2 – paragraph 1 – point 5 – point b – point i
Article 2 – paragraph 1 – point 5 – point b – point i
Directive (EU) 2016/97
Article 10 – paragraph 2 – subparagraph 2
Article 10 – paragraph 2 – subparagraph 2
For the purpose of the first subparagraph, home Member States shall have in place and publish mechanisms to control effectively and assess the knowledge and competence of insurance and reinsurance intermediaries, employees of insurance and reinsurance undertakings and employees of insurance and reinsurance intermediaries, as set out in Annex I, based on at least 135 hours of professional training or development per year, taking into account the nature of the products sold, the type of distributor, the role they perform, and the activity carried out within the insurance or reinsurance distributor. At least 15 hours of this professional training or development per year should be dedicated to sustainability issues.
Amendment 708 #
Proposal for a directive
Article 2 – paragraph 1 – point 5 – point b – point i
Article 2 – paragraph 1 – point 5 – point b – point i
Directive (EU) 2016/97
– paragraph 2 – subparagraph 2
– paragraph 2 – subparagraph 2
For the purpose of the first subparagraph, home Member States shall have in place and publish mechanisms to control effectively and assess the knowledge and competence of insurance and reinsurance intermediaries, employees of insurance and reinsurance undertakings and employees of insurance and reinsurance intermediaries, as set out in Annex I, based on at least 145 hours of professional training or development per year, taking into account the nature of the products sold, the type of distributor, the role they perform, and the activity carried out within the insurance or reinsurance distributor.
Amendment 711 #
Proposal for a directive
Article 2 – paragraph 1 – point 5 – point b a (new)
Article 2 – paragraph 1 – point 5 – point b a (new)
Directive (EU) 2016/97
Article 12 – paragraph 2a (new)
Article 12 – paragraph 2a (new)
(ba) the following paragraph 2a is added: 2a. Insurance undertakings and intermediaries shall be required to report to national competent authorities of its home Member State on an annual basis: (i) the number of insurance-based investment products and, where applicable, underlying investment assets, that it considers when providing advice, with a distinction between those issued or provided by entities with close link to the insurance undertaking or intermediary and those provided by non-affiliated third- party providers; (ii) the ratio of insurance-based investment products and, where applicable, underlying investment assets, sold to clients that are issued or provided by entities with close links to the insurance undertaking or intermediary and those provided by non-affiliated third- party providers; National competent authorities shall forward this information to EIOPA without undue delay.
Amendment 713 #
Proposal for a directive
Article 2 – paragraph 1 – point 7
Article 2 – paragraph 1 – point 7
Directive 2016/97
Article 12b – paragraph 1
Article 12b – paragraph 1
Amendment 716 #
Proposal for a directive
Article 2 – paragraph 1 – point 8
Article 2 – paragraph 1 – point 8
Directive 2016/97
Article 14
Article 14
Member States shall ensure that insurance and reinsurance distributors establish appropriate procedures and arrangements, including electronic communication channels, to ensure that complaints from customers and other interested parties, especially consumer associations, are dealt with properly and that there are no restrictions on customers and other interested parties exercising their rights under this Directive. Those procedures and arrangements shall allow customers and other interested parties to register complaints and receive replies in the same language in which the communication material or any contractual documents were provided. In all cases, complainants shall receive replies within 4015 working days.; Replies shall be written in the language in which complaints were made.
Amendment 718 #
Proposal for a directive
Article 2 – paragraph 1 – point 9
Article 2 – paragraph 1 – point 9
Directive 2016/97
Article 16 a
Article 16 a
Member States shall promote measures that support the education of customers in relation to the responsible purchase of insurance products when accessing insurance services or ancillary services. Member States shall ensure that all measures that they promote in the field of financial education are independent of any financial service provider.
Amendment 723 #
Proposal for a directive
Article 2 – paragraph 1 – point 12 – point b – point iii
Article 2 – paragraph 1 – point 12 – point b – point iii
Directive 2016/97
Article 19 – paragraph 1 – point d
Article 19 – paragraph 1 – point d
Amendment 763 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 2
Article 25 – paragraph 2
2. When an insurance-based investment product which deviates from the relevant benchmark referred to in paragraph 8, the manufacturer shall inform the relevant competent authority and perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If a justification and proportionality of costs and charges cannot be demonstratedfor the deviation cannot be demonstrated to the relevant competent authority, the insurance- based investment product shall not be approved by the manufacturer. Where no relevant benchmark exists for an insurance- based investment product, a manufacturer shall approve the product only if it has established through product testing and assessments that the costs and charges are justified and proportionate and that the product meets the target market’s objectives and needs.
Amendment 771 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive 2016/97
Article 25 – paragraph 4 – subparagraph 1 – point a
Article 25 – paragraph 4 – subparagraph 1 – point a
(a) complete and accurate details of costs and charges of the insurance-based investment product, including any distribution costs incorporated into the costs of the product, inclusive of third-party payments;charged.
Amendment 799 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive 2016/97
Article 25 – paragraph 6
Article 25 – paragraph 6
6. When an insurance-based investment product deviates from the relevant benchmark referred to in paragraph 8, the insurance intermediary or insurance undertaking distributing insurance-based investment products shall inform the relevant competent authority and perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If justification and proportionality of costs and charges cannot be demonstrated to the relevant competent authority, the insurance intermediary or insurance undertaking shall not advise on or propose the insurance- based investment product to retail customers. Where no relevant benchmark exists for an insurance- based investment product, distributors shall only advise on or propose the product, if they have established through product testing and assessments that the costs and charges are justified and proportionate and that the product meets the target market’s objectives and needs.
Amendment 803 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive 2016/97
Article 25 – paragraph 7 – introductory part
Article 25 – paragraph 7 – introductory part
7. An insurance intermediary or insurance undertaking which manufactures or distributes insurance-based investment products shall document all assessments made and provide these to their relevant competent authority, including the following:
Amendment 809 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph – 7 a (new)
Article 25 – paragraph – 7 a (new)
7a. The documentation resulting from this product approval process and any other assessment in accordance with this article shall also be made publicly available in an electronic format on the website of the insurance undertaking or insurance intermediary.
Amendment 826 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
The costs used for the development of benchmarks shall, in addition to the total product cost, also include all costs of distribution, inclusive inducements. They shall allow comparison with individual cost components.
Amendment 849 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive 2016/97
Article 25 – paragraph 12 a (new)
Article 25 – paragraph 12 a (new)
12a. EIOPA shall organise and conduct a peer review, at least once every two years, in cooperation with national competent authorities regarding the implementation of the obligation described in this Article.
Amendment 856 #
Proposal for a directive
Article 2 – paragraph 1 – point 18
Article 2 – paragraph 1 – point 18
The presentation of the essential characteristics of marketing communications of insurance-based investment products shall ensure that retail investors can easily understand the key features of the insurance-based investment product as well as the costs and main risks associated with them.
Amendment 868 #
Proposal for a directive
Article 2 – paragraph 1 – point 18
Article 2 – paragraph 1 – point 18
Directive (EU) 2016/97
Article 26 a – paragraph 8 – subparagraph 1 – point b
Article 26 a – paragraph 8 – subparagraph 1 – point b
(b) the conditions with which marketing communications and marketing practices of insurance-based investment products should comply in order to be fair, clear, not misleading, balanced in terms of the presentation of the advantages, costs and risks , and appropriate in terms of content and distribution channels for the target audience or, where applicable, the target market.;
Amendment 893 #
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 1 – subparagraph 1 – point d
Article 29 – paragraph 1 – subparagraph 1 – point d
(d) information on all explicit and implicit costs, associated charges and third-party payments, including all costs and charges relating to the distribution of the insurance-based investment product, and the cost of advice, where relevant, how the customer may pay for it and the duration of payments;
Amendment 896 #
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 1 – subparagraph 2
Article 29 – paragraph 1 – subparagraph 2
The information referred to in the first subparagraph, point (d), shall be accompanied by an appropriate explanation, in a standardised and comprehensible language for an average retail customer, on the impact of the costs, and charges and any third-party paymentscost of distribution on the expected return.
Amendment 899 #
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 1 – subparagraph 3
Article 29 – paragraph 1 – subparagraph 3
Member States shall ensure that insurance intermediaries and insurance undertakings present the information on all costs, charges and third-party payment and charges referred to in the first subparagraph, point (d) in aggregated form to enable the customer to understand the overall cost and the cumulative effect on the return of the investment. The overall cost shall be expressed in monetary terms and percentages calculated over the term of the insurance-based investment product. Where the customer so requests, iInsurance intermediaries and insurance undertakings shall provide an itemised breakdown of that informationinform clients explicitly about the possibility to ask for an itemised breakdown of that information and they shall provide such an itemised breakdown at the request of the client.
Amendment 904 #
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
The third-party payments paid or receivdistribution costs charged by the insurance intermediary or insurance undertaking in connection with the provision or distribution of the insurance- based investment product shall be itemised separately. The insurance intermediary or insurance undertaking shall disclose the cumulative impact of such third-party paymencosts, including any recurring third- party paymencosts, on the net return over the term of the insurance-based investment product. The purpose of the third-party payments and their impactimpact of distribution costs on the net return shall be explained in a standardised way and in a comprehensible language for an average retail customer.
Amendment 909 #
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 2 – subparagraph 5
Article 29 – paragraph 2 – subparagraph 5
Amendment 913 #
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 3 – point a
Article 29 – paragraph 3 – point a
(a) the total costs associated charges and third-party paymendistribution costs, expressed in an itemised way in monetary terms and percentages, paid or borne, directly or indirectly, by the retail policyholder over the previous 12 months and on a compounded basis since the start of the contract term in connection with the insurance-based investment product;
Amendment 921 #
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 3 a (new)
Article 29 – paragraph 3 a (new)
3a. The annual statement shall include a link to the independent online fund calculator and comparator to be developed by ESMA in accordance with Directive 2011/61/EU and Directive 2009/65/EC, including with a standardised alert concerning the impact of costs on investment returns: ‘Check how much you are paying using ESMA’s comparison tool, the costs associated with an insurance-based investment product can significantly impact your investment returns.
Amendment 926 #
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 5 – subparagraph 1
Article 29 – paragraph 5 – subparagraph 1
Member States shall ensure that insurance intermediaries and insurance undertakings distributing insurance-based investment products display appropriate warnings in information material, including marketing communications, provided to retail customers to alert them on the specific risks of potential losses carried by particularly risky insurance-based investment products and, where applicable, underlying investment assets. including losses related to their sustainability characteristics, such as having significant negative impact on Principal Adverse Impact indicators as indicated in Regulation (EU) 2019/2088 (Sustainable Finance Disclosure Regulation)
Amendment 927 #
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 5 – subparagraph 2
Article 29 – paragraph 5 – subparagraph 2
EIOPA shall, by [18 months after the entry into force of the amending Directive], develop, and update periodically, guidelines ondraft regulatory technical standards to further specify the concept of particularly risky insurance-based investment products and the format and content of such risk warnings, taking due account of the specificities of the different types of insurance-based investment products.
Amendment 930 #
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 5 – subparagraph 2
Article 29 – paragraph 5 – subparagraph 2
EIOPA shall, by [18 months after the entry into force of the amending Directive], develop, and update periodically, guidelines on the concept of particularly risky insurance-based investment products, taking due account of the specificities of the different types of insurance-based investment products and their sustainability characteristics.
Amendment 946 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 1 – subparagraph 1
Article 29 a – paragraph 1 – subparagraph 1
Member States shall ensure that insurance intermediaries or insurance undertakings that manufacture insurance-based investment products or distribute such products in accordance with Article 30(1), 30(2) and (3) do not pay or receive any fee or commission, or provide or are provided with any non-monetary benefit with regard to the provision or distribution of an insurance based investment product, to or by any party except the customer or a person on behalf of the customer.
Amendment 950 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 2
Article 29 a – paragraph 2
Amendment 957 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 4 – subparagraph 1
Article 29 a – paragraph 4 – subparagraph 1
Member States may impose stricter requirements on insurance intermediaries and insurance undertakings in respect of the matters covered by this Article. In particular, Member States may additionally prohibit or further restrict the offer or acceptance of fees, commissions or non-monetary benefits from third parties in relation to the provision of insurance advice.
Amendment 967 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 5 – point b
Article 29 a – paragraph 5 – point b
(b) the criteria for assessing compliance of insurance intermediaries and insurance undertakings paying or receiving inducements with the obligation to act honestly, fairly and professionally in accordance with the best interests of the customer.
Amendment 968 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 6
Article 29 a – paragraph 6
Amendment 977 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 6 a (new)
Article 29 a – paragraph 6 a (new)
6a. The European Commission shall adapt the requirements established in Article 25 regarding the pricing process, for insurance intermediaries or insurance undertakings located in a Member State that prohibits the offer or acceptance of fees, commissions or non-monetary benefits from third parties in relation to the provision of insurance advice, and for insurance intermediaries or insurance undertakings that can proof to the Member States' National Competent Authority they do not offer or accept fees, commissions or non-monetary benefits from third parties in relation to the provision of insurance advice. These adapted requirements shall take into account the reduced risk of conflicts of interest and keep in mind the principle of proportionality
Amendment 983 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 b – paragraph 1 – point a
Article 29 b – paragraph 1 – point a
(a) to provide such advice on the basis of an assessment of an appropriate range of suitable insurance-based investment products and, where applicable, underlying investment assets, including an appropriate range of suitable insurance- based investment products and, where applicable underlying investment assets, from third party product providers having no close links with the insurance undertaking or insurance intermediary;
Amendment 1009 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 b – paragraph 1 – point d
Article 29 b – paragraph 1 – point d
(d) to recommend anonly insurance-based investment products which insurance cover iss are consistent with the customer’s insurance demands and needs.
Amendment 1012 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 b – paragraph 1 a (new)
Article 29 b – paragraph 1 a (new)
1a. EIOPA shall organise and conduct a mandatory peer review in cooperation with national competent authorities regarding the implementation of the obligations described in this Article.
Amendment 1016 #
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point b
Article 2 – paragraph 1 – point 22 – point b
Directive (EU) 2016/97
Article 30 – paragraph 1 – subparagraph 1
Article 30 – paragraph 1 – subparagraph 1
Without prejudice to Article 20(1), when providing advice on insurance-based investment products, the insurance intermediary or insurance undertaking shall obtain the information regarding the customer’s knowledge and experience in the investment field relevant to the specific type of insurance-based investment product or, where applicable, underlying investment assets, offered or demanded, that customer’s financial situation, including the composition of any existing portfolios, its ability to bear full or partial losses, investment needs and objectives, including any sustainability preferences, and risk tolerance, so as to enable the insurance intermediary or the insurance undertaking to recommend to the customer the insurance-based investment products that are suitable for that person and that, in particular, are in accordance with its risk tolerance, ability to bear losses, its sustainability preferences and need for portfolio diversification. The products proposed by the insurance intermediary or insurance undertaking shall include at least one product that aims to make a positive contribution to environmental sustainability as defined in Regulation (EU) 2020/852 unless the client has explicitly indicated that they do not have any sustainability preferences as defined in Article 2(7) of Delegated Regulation (EU) 2017/565.
Amendment 1017 #
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point b
Article 2 – paragraph 1 – point 22 – point b
Directive (EU) 2016/97
Article 30 – paragraph 1 – subparagraph 1
Article 30 – paragraph 1 – subparagraph 1
Without prejudice to Article 20(1), when providing advice on insurance-based investment products, the insurance intermediary or insurance undertaking shall obtain the information regarding the customer’s knowledge and experience in the investment field relevant to the specific type of insurance-based investment product or, where applicable, underlying investment assets, offered or demanded, that customer’s financial situation, including the composition of any existing portfolios, its ability to bear full or partial losses, investment needs and objectives, including any sustainability preferences, and risk tolerance, so as to enable the insurance intermediary or the insurance undertaking to recommend to the customer the insurance-based investment products that are suitable for that person and that, in particular, are in accordance with its risk tolerance, ability to bear losses, its sustainability preferences, and need for portfolio diversification. The products proposed by the insurance intermediary or insurance undertaking shall include at least one product that has sustainable investment as its objective as defined in Article 9 of Regulation (EU) 2019/2088, unless the client that has explicitly indicated that they do not have any sustainability preferences as defined in Article 9 of Delegated Regulation (EU) 2021/1257.
Amendment 1044 #
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point d
Article 2 – paragraph 1 – point 22 – point d
Directive 2016/97
Article 30 – paragraph 5 a – subparagraph 1
Article 30 – paragraph 5 a – subparagraph 1
Member States may impose stricter requirements on distributors in respect of the matters covered by this Article. In particular, Member States may make the provision of advice referred to in Article 30 mandatory for the sales of any insurance-based investment products, or for certain types of themMember States shall ensure that their stricter requirements do not prevent the sales without advice as defined in Article 2(1a) of this Directive.
Amendment 1058 #
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point e
Article 2 – paragraph 1 – point 22 – point e
Directive (EU) 2016/97
Article 30 – paragraph 6 –subparagraph 1 – point c a (new)
Article 30 – paragraph 6 –subparagraph 1 – point c a (new)
(ca) the criteria for assessing the alignment of financial products with a client's sustainability preferences and outlining the procedures for tailoring a portfolio or investment product offering to meet a client's sustainability preferences.
Amendment 1059 #
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point e
Article 2 – paragraph 1 – point 22 – point e
Directive (EU) 2016/97 (IDD)
Article 30 – paragraph 6 –subparagraph 1 – point c a (new)
Article 30 – paragraph 6 –subparagraph 1 – point c a (new)
(ca) the criteria for assessing the alignment of financial products with a client's sustainability preferences and outlining the procedures for tailoring a portfolio or investment product offering to align with a client's sustainability preferences.
Amendment 1079 #
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Article 4 – paragraph 1 – point 1 – point a
Directive 2009/65
Article 14 – paragraph 1 e – subparagraph 1
Article 14 – paragraph 1 e – subparagraph 1
Member States shall require management companies to assess at least annually the conditions mentioned in paragraph 1b, point (b) and to take corrective measures if needed. Theis assessment shall be published in the prospectus of the UCITS and take into account the criteria set out in the pricing process in paragraph 1c and include a comparison with the relevant benchmark on costs and performance published by ESMA in accordance with paragraph 1f.
Amendment 1083 #
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Article 4 – paragraph 1 – point 1 – point a
Directive 2009/65
Article 14 – paragraph 1 e – subparagraph 2
Article 14 – paragraph 1 e – subparagraph 2
When a UCITS or its share classes, when they have different cost structures, deviate from the relevant benchmark referred to in paragraph 1f, the management company shall inform the competent authority of the management company and perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If a justification and proportionality of costs and charges cannot be demonstratedfor the deviation cannot be demonstrated to the competent authority of the management company or if the UCITS or its share classes do not comply with other criteria set out by the management company in the pricing process that UCITS or its share classes shall not be marketed to retail investors by the management company.
Amendment 1090 #
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Article 4 – paragraph 1 – point 1 – point a
Directive 2009/65/EC
Article 14 – paragraph 1 f a (new)
Article 14 – paragraph 1 f a (new)
Amendment 1091 #
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Article 4 – paragraph 1 – point 1 – point a
Directive 2009/65/EC
Article 14 – paragraph 1 f b (new)
Article 14 – paragraph 1 f b (new)
(fb) ESMA shall organise and conduct a peer review, at least once every two years, in cooperation with national competent authorities regarding the implementation of the obligations described in this Article.
Amendment 1105 #
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a – introductory part
Article 5 – paragraph 1 – point 1 – point a – introductory part
(a) the following paragraphs 1a to 1fg are inserted:
Amendment 1122 #
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Article 5 – paragraph 1 – point 1 – point a
Directive 2011/61
Article 12 – paragraph 1 e – subparagraph 1
Article 12 – paragraph 1 e – subparagraph 1
1e. Member States shall require AIFMs to assess at least annually the conditions mentioned in paragraph 1b, point (b) and to take corrective measures if needed. Theis assessment shall be published in the prospectus and take into account the criteria set out in the pricing process in paragraph 1c and, for AIFs marketed to retail investors, include a comparison with the relevant benchmark on costs and performance published by ESMA in accordance with paragraph 1f.
Amendment 1126 #
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Article 5 – paragraph 1 – point 1 – point a
directive 2011/61
Article 12 – paragraph 1 e – subparagraph 2
Article 12 – paragraph 1 e – subparagraph 2
When an AIF or its share classes, when they have different cost structures, deviate from the relevant benchmark referred to in paragraph 1f, the AIFM shall inform the competent authority of the AIFM and perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If justification and proportionality of costs and charges cannot be demonstratedfor the deviation cannot be demonstrated to the competent authority of the management company, or if the AIF or its share classes do not comply with other criteria set out by the AIFM in the pricing process, that AIF or its share class shall not be marketed to retail investors by the AIFM.
Amendment 1132 #
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Article 5 – paragraph 1 – point 1 – point a
Directive 2011/61/EU
Article 12 – paragraph 1 f a (new)
Article 12 – paragraph 1 f a (new)
Amendment 1133 #
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Article 5 – paragraph 1 – point 1 – point a
Directive 2011/61/EU
Article 12 – paragraph 1 f b (new)
Article 12 – paragraph 1 f b (new)
(f b) ESMA shall organise and conduct a peer review, at least once every two years, in cooperation with national competent authorities regarding the implementation of the obligations described in this Article.