98 Amendments of Frances FITZGERALD related to 2023/0167(COD)
Amendment 114 #
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 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. In the case of Directive (EU) 2016/97, the prohibition should not affect products with indexed policies or in cases where advice is provided during the life cycle of a product or in cases of “orphaned customers” when the policyholder decides they no longer want to use the broker, intermediary or advisor and wants to continue instructing on the policy. The lack of advice in this scenario may mean that the policyholder may not be making the right decisions which, from a consumer protection point of view, might not lead to good outcomes for customers. 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 119 #
Proposal for a directive
Recital 5
Recital 5
(5) In order to ensure that retail customers are not misled, it is important to stipulate in Directive (EU) 2016/97 that, in line with existing rules in Directive (EU) 2014/65, insurance intermediaries that indicate to their customers that they provide advice on an independent basis, should not accept inducements for such advice. This rule should not prevent insurance intermediaries offering advice to customers from accepting inducements, provided that the advice is not presented as independent, customers are informed of the inducements in line with applicable transparency requirements and that other legal requirements, including the requirement to act in the best interest of the customer, are complied with. Free hospitality for intermediaries should also be prohibited and any commission received in the form of non-monetary benefits must demonstrably enhance the quality of the service to the consumer in order to be permitted.
Amendment 122 #
Proposal for a directive
Recital 6
Recital 6
(6) The existing safeguards conditioning the payment or receipt of inducements, which under Directive (EU) 2014/65 require that the inducement is designed to enhance the quality of the service to the client, or under Directive (EU) 2016/97 should not have a detrimental effect on the quality of the service to the customer, have not been sufficiently effective in mitigating conflicts of interest. It is therefore appropriate to remove those criteria and introduce a new, common test, both in Directive (EU) 2014/65 and Directive (EU) 2016/97, that further clarifies how financial advisors should apply the principle of acting in the best interest of the client. Financial advisors should base their advice on an appropriate available range of financial products. After having identified suitable instruments for their clients, they should recommend the most cost-efficient of similar products to their clients. Furthermore, financial advisors should also systematically recommend at least one product without features that may not be necessary for the achievement of the client’s investment objective, so that retail investors are presented also with alternative and possibly cheaper options to consider. Such features may include, as an example, funds with an investment strategy which implies higher costs, a capital guarantee and structured products with hedging elements. If advisors choose to also recommend a product that carries additional features which carry extra costs to the client or customer, they should explicitly provide the reason for such a recommendation and disclose the extra costs incurred. In the case of insurance-based investment products, advisors should also ensure that the insurance cover included in the product is consistent with the customer’s insurance demands and needsThe best interest of customers is broader than costs. Focusing only on costs might result in a race to the bottom and the offering of the cheapest product among a range of products. This race to the bottom can result in a marked decrease in the aftersales services to customers. Value derived from a product is not the same as the cost of the product.
Amendment 128 #
Proposal for a directive
Recital 8 a (new)
Recital 8 a (new)
(8a) The new requirements for insurance product information documents (IPIDs) should not duplicate or contradict the existing national requirements and should ensure that customers receive the most relevant information which would enable them to make sound investment decisions
Amendment 135 #
Proposal for a directive
Recital 10
Recital 10
(10) The level of costs and charges associated with investment and insurance- based investment products can have a significant impact on investment returns, something that may not always be evident for retail investors. To ensure that products offer Value for Money for retail investors, Member States should ensure that firms authorised under Directive (EU) 2014/65 or Directive (EU) 2016/97 to manufacture or distribute investment products have clear pricing processes that enable a clear identification and quantification of all costharacteristics ctharged to retail investors and are designed to ensure that the costs and charges that are included in investmentt determine the value of a product. The determination of the value of a product purely on the basis of the relative costs and returns neglects the consideration of the value of risk mitigation. For instance, where products or thmitigate are linked to their distribution are justified and proportionate in respect of the characteristics, objectives, strategy and expected performance of the productdditional risks for the consumer, for example biometrical risks, the value of the certainty for consumer arising from the risk transfer should be taken into consideration.
Amendment 138 #
Proposal for a directive
Recital 13
Recital 13
Amendment 168 #
Proposal for a directive
Recital 24
Recital 24
(24) The provision of cross-border investment services is essential for the development of the Capital Markets Union, as well as being an inherent outworking of the Freedom of Services which is fundamental to the EU and its Single Market, and proper enforcement of the rules is a key element of the single market. While the home Member State is responsible for the supervision of an investment firm in cases of cross-border provision of services, the single market relies on trust that stems from the adequate supervision of investment firms by the home competent authorities. The principle of mutual recognition requires efficient cooperation between home and host Member States to ensure that a sufficient level of investor protection is maintained. Directive (EU) 2014/65 already provides for a mechanism that allows, under strict conditions and where the home Member State does not take appropriate action, competent authorities of host Member States to take precautionary measures to protect investors. To facilitate cooperation between competent authorities, and to further strengthen the supervisory efforts, that mechanism should be simplified and those competent authorities that observe highly similar or identical behaviours on their territory to those already signalled by another authority should be able to refer to the findings of that initiating authority to initiate a procedure under Article 86 of Directive (EU) 2014/65. Regulatory restrictions to the freedom of cross-border investment that would have as a consequence the limiting of choice for retail investors and/or undermining the Freedom of Services should be avoided.
Amendment 170 #
Proposal for a directive
Recital 24 a (new)
Recital 24 a (new)
(24a) The Capital Markets Union enables undertakings established in the Union to exercise their rights under the freedom to provide services and the freedom of establishment, provided that they comply with certain conditions. To ensure the fair and proper application of these principles, regulators should actively cooperate through ESMA and EIOPA and exchange best practices in line with the provisions of Directives 2014/65/EU and (EU) 2016/97 to prevent any potential misuse.
Amendment 171 #
Proposal for a directive
Recital 24 b (new)
Recital 24 b (new)
Amendment 174 #
Proposal for a directive
Recital 28
Recital 28
(28) To further increase transparency, new and existing retail clients and customers should receive a periodicreal time 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 new and existing retail clients and customers through an interactive online portal, which should include an overview of the products those clients and customers hold in real time, of all costs, 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 185 #
Proposal for a directive
Recital 36
Recital 36
Amendment 197 #
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 67 – subpoint a
Article 4 – paragraph 1 – point 67 – subpoint a
(a) directly or indirectly disseminate marketing communications;
Amendment 198 #
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 67 – subpoint b
Article 4 – paragraph 1 – point 67 – subpoint b
Amendment 201 #
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 67 – subpoint c
Article 4 – paragraph 1 – point 67 – subpoint c
(c) promote in any way investment firms,the sale of financial instruments or investment services;
Amendment 208 #
Proposal for a directive
Article 1 – paragraph 1 – point 3 a (new)
Article 1 – paragraph 1 – point 3 a (new)
Directive 2014/65/EU
Article 5 – paragraph 4 – point a
Article 5 – paragraph 4 – point a
(3a) in Article 5(4), point (a) is replaced by the following: (a) any investment firm which is a legal person have its head office in the same Member State as its registered office from where it can operate fully within the EU single market and utilise the EU's freedom of services;
Amendment 210 #
Proposal for a directive
Article 1 – paragraph 1 – point 3 a (new)
Article 1 – paragraph 1 – point 3 a (new)
Directive 2014/65/EU
Article 5 – paragraph 4 – point a
Article 5 – paragraph 4 – point a
(3a) In article 5(4), point (a) is amended: "(a) any investment firm which is a legal person haves its head office in the same Member State as its registered office; "
Amendment 221 #
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 – point a
Article 16–a – paragraph 1 – point a
(a) a specification of an identified target markets of end-clients within the relevant category of clients for each financial instrument;
Amendment 224 #
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 – point b
Article 16–a – paragraph 1 – point b
(b) a clearn identification of the target market’s objectives and needs;
Amendment 226 #
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 – point c
Article 16–a – paragraph 1 – point c
(c) an general assessment of whether the financial instrument isare designed appropriately to meet the target market’s objectives and needs;
Amendment 230 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
(e) in relation to financial instruments falling under the definition of packaged retail investment products in accordance with Article 4(1) of Regulation (EU) No 1286/2014 of the European Parliament and of the Council*, a clear identificqualitationve and quantification of all costs and charges related to the financial instrument and an assessment of whether those costs and charges are justified and proportionate, having regard to the characteristictative identification and quantification of all features, objectives and, if relevant, strategy of the financial instrument, and its performance (‘pricing process’).
Amendment 246 #
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 3
Article 16–a – paragraph 1 – subparagraph 3
Amendment 256 #
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
Amendment 263 #
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 5
Article 16–a – paragraph 1 – subparagraph 5
An investment firm which manufactures financial instruments shall make available to distributors all information on the financial instrument and the product approval process that is needed to fully understand that instrument and the elements taken into consideration during the product approval process, includingfor example complete and accurate details on any costs and chargesfeatures, objectives, strategy and performance of the financial instrument.
Amendment 268 #
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 – introductory part
Article 16–a – paragraph 2 – introductory part
An investment firm which manufactures 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 itstheir home competent authoauthorities details on features, objectives, strategy and characteristiecs of the following:inancial instrument, in particular its performance and level of risk.
Amendment 270 #
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
Amendment 272 #
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 b
Article 16–a – paragraph 2 – point b
Amendment 285 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 4 – subparagraph 2 – point a
Article 16–a – paragraph 4 – subparagraph 2 – point a
Amendment 308 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 4 – subparagraph 4
Article 16–a – paragraph 4 – subparagraph 4
Amendment 333 #
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
Article 16–a – paragraph 7
Amendment 354 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 9 – subparagraph 1
Article 16–a – paragraph 9 – subparagraph 1
Amendment 357 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 9 – subparagraph 2
Article 16–a – paragraph 9 – subparagraph 2
Amendment 360 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 9 – subparagraph 3
Article 16–a – paragraph 9 – subparagraph 3
Amendment 362 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 9 – subparagraph 4
Article 16–a – paragraph 9 – subparagraph 4
Amendment 370 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 11 – introductory part
Article 16–a – paragraph 11 – introductory part
11. The Commission ishall be empowered to supplement this Directive by adopting delegated acts in accordance with Article 389 to further specify the following: principles set out in this Article, including criteria to determine whether the product characteristics are justified and proportionate;
Amendment 371 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 11 – point a
Article 16–a – paragraph 11 – point a
Amendment 374 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 11 – point b
Article 16–a – paragraph 11 – point b
Amendment 395 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 12 – subparagraph 2
Article 16–a – paragraph 12 – subparagraph 2
ESMA shall submit those draft regulatory technical standards to the Commission by [18 months] after adoption of the delegated act referred to in paragraph 11the entry into force of this directive.
Amendment 446 #
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 riskycomplex financial instruments.
Amendment 456 #
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, clear and precise guidelines on the concept of particularly riskycomplex financial instruments taking due account of the specificities of the different types of instruments.
Amendment 671 #
Proposal for a directive
Article 1 – paragraph 1 – point 16
Article 1 – paragraph 1 – point 16
Directive 2014/65/EU
Article 35 a – paragraph 1 – subparagraph 1– point b
Article 35 a – paragraph 1 – subparagraph 1– point b
Amendment 672 #
Proposal for a directive
Article 1 – paragraph 1 – point 16
Article 1 – paragraph 1 – point 16
Directive 2014/65/EU
Article 35 a – paragraph 1 – subparagraph 1– point c
Article 35 a – paragraph 1 – subparagraph 1– point c
Amendment 673 #
Proposal for a directive
Article 1 – paragraph 1 – point 16
Article 1 – paragraph 1 – point 16
Directive 2014/65/EU
Article 35 a – paragraph 1 – subparagraph 1– point d
Article 35 a – paragraph 1 – subparagraph 1– point d
Amendment 674 #
Proposal for a directive
Article 1 – paragraph 1 – point 16
Article 1 – paragraph 1 – point 16
Directive 2014/65/EU
Article 35 a – paragraph 1 – subparagraph 1– point e
Article 35 a – paragraph 1 – subparagraph 1– point e
Amendment 690 #
Proposal for a directive
Article 2 – paragraph 1 – point 1 – point b
Article 2 – paragraph 1 – point 1 – point b
Directive (EU) 2016/97
Article 2 – paragraph 1 – point 8 a (new)
Article 2 – paragraph 1 – point 8 a (new)
(8a) “Orphaned customer” means a situation where the policyholder decides they no longer want to use the broker, intermediary or adviser and wants to continue instructing on the policy
Amendment 696 #
Proposal for a directive
Article 2 – paragraph 1 – point 2 – point c a (new)
Article 2 – paragraph 1 – point 2 – point c a (new)
Directive (EU) 2016/97
Article 3 – paragraph 7 a (new)
Article 3 – paragraph 7 a (new)
(ca) the following paragraph 7a is added: 7a. Member States shall ensure that competent authorities, in cases where an insurance, reinsurance, or ancillary insurance intermediary, which is a legal entity, has its head office in the same Member State as its registered office but exclusively engages in investment activities in other Member States, act in a manner consistent with EU law and the principles of the single market, refraining from imposing restrictions on undertakings providing cross-border services in line with the single market principles.
Amendment 697 #
Proposal for a directive
Article 2 – paragraph 1 – point 2 – point c a (new)
Article 2 – paragraph 1 – point 2 – point c a (new)
Directive (EU) 2016/97
Article 3 – paragraph 7 a (new)
Article 3 – paragraph 7 a (new)
(ca) (ca) the following paragraph is added: Member States shall ensure that competent authorities uphold the integrity of the EU internal market when making their decision to grant or refuse registration to an insurance, reinsurance or ancillary insurance intermediary, which is a legal person.
Amendment 699 #
Proposal for a directive
Article 2 – paragraph 1 – point 4
Article 2 – paragraph 1 – point 4
Amendment 700 #
Proposal for a directive
Article 2 – paragraph 1 – point 4
Article 2 – paragraph 1 – point 4
Directive (EU) 2016/97
Article 9 a – paragraph 1 – subparagraph 1 – point c
Article 9 a – paragraph 1 – subparagraph 1 – point c
Amendment 701 #
Proposal for a directive
Article 2 – paragraph 1 – point 4
Article 2 – paragraph 1 – point 4
Directive (EU) 2016/97
Article 9 a – paragraph 1 – subparagraph 1 – point d
Article 9 a – paragraph 1 – subparagraph 1 – point d
Amendment 702 #
Proposal for a directive
Article 2 – paragraph 1 – point 4
Article 2 – paragraph 1 – point 4
Directive (EU) 2016/97
Article 9 a – paragraph 1 – subparagraph 1 – point e
Article 9 a – paragraph 1 – subparagraph 1 – point e
Amendment 725 #
Proposal for a directive
Article 2 – paragraph 1 – point 13 – point c – point i
Article 2 – paragraph 1 – point 13 – point c – point i
Directive (EU) 2016/97
Article 20 – paragraph 8 – introductory part
Article 20 – paragraph 8 – introductory part
For non-life insurance products, the insurance product information documentform shall contain the following information:;
Amendment 729 #
Proposal for a directive
Article 2 – paragraph 1 – point 13 – point d
Article 2 – paragraph 1 – point 13 – point d
Directive (EU) 2016/97
Article 20– paragraph 8 a – introductory part
Article 20– paragraph 8 a – introductory part
8a. For life insurance products other than insurance-based investment products, the insurance product information documentform shall contain the following:
Amendment 733 #
Proposal for a directive
Article 2 – paragraph 1 – point 15
Article 2 – paragraph 1 – point 15
Directive (EU) 2016/97
Article 23 – paragraph 4 – subparagraph 1
Article 23 – paragraph 4 – subparagraph 1
EIOPA shall, taking into account the requirements of other existing regulations, after consulting ESMA and after conducting consumer testing and industry testing, by [2 years after the entry into force of the amending Directive] develop, and update periodically, guidelines specifying the presentation of information provided in an electronic format in a suitable way for the average customer to whom the information is directed.
Amendment 734 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 1 – subparagraph 2 – point a
Article 25 – paragraph 1 – subparagraph 2 – point a
(a) a specification of an identified target market for each insurance products;
Amendment 735 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 1 – subparagraph 2 – point b
Article 25 – paragraph 1 – subparagraph 2 – point b
(b) a clearn identification of target market’s objectives and needs;
Amendment 736 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 1 – subparagraph 2 – point c
Article 25 – paragraph 1 – subparagraph 2 – point c
(c) an general assessment of whether the insurance product iss are designed appropriately to meet the target market’s objectives and needs;
Amendment 740 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 1 – subparagraph 2 – point f
Article 25 – paragraph 1 – subparagraph 2 – point f
(f) in relation to insurance-based investment products, a clear identificqualitationve and quantification of all costs and charges related to the product and an assessment of whether these costs and charges are justified and proportionate, having regard to the characteristictative identification and quantification of all features, objectives, strategy and performance of the product, as well as the guarantees and insurance coverage of biometric and other risks (pricing process);
Amendment 747 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 1 – subparagraph 3
Article 25 – paragraph 1 – subparagraph 3
Amendment 760 #
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
Amendment 765 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 3 – subparagraph 1
Article 25 – paragraph 3 – subparagraph 1
Insurance undertakings and intermediaries which manufacture insurance products, shall understand and regularly review the insurance products they offer, taking into account any event or risk that could materially affect the identified target market, and assess whether the product remains consistent with the objectives and needs of the identified target markets and whether the intended distribution strategy remains appropriate.
Amendment 766 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 3 – subparagraph 2
Article 25 – paragraph 3 – subparagraph 2
Insurance undertakings and intermediaries which manufacture insurance products, shall make available to distributors all information on the insurance product and the product approval process that is needed to fully understand that product and the elements taken into consideration during the product approval process, includingfor example complete and accurate details on any costs and chargesfeatures, objectives, strategy and performance of the insurance product.
Amendment 768 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 3 – subparagraph 3
Article 25 – paragraph 3 – subparagraph 3
In the case of insurance-based investment products, the information made available to distributors shall contain all the elements referred to in paragraph 1, third subparagraph, points (f) and (g), any further relevant data and an explanation showing that costs and charges are justified and proportionate and that the product meets the objectives and needs of the customers belonging to the target markets.
Amendment 769 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 4 – subparagraph 1 – introductory part
Article 25 – paragraph 4 – subparagraph 1 – introductory part
Insurance undertakings and insurance intermediaries which manufacture insurance-based investment products shall report to their home authorities all of the following:details on features, objectives, strategy and characteristics of the insurance-based investment product, in particular its performance and level of risk.
Amendment 770 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 4 – subparagraph 1 – point a
Article 25 – paragraph 4 – subparagraph 1 – point a
Amendment 772 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 4 – subparagraph 1 – point b
Article 25 – paragraph 4 – subparagraph 1 – point b
Amendment 775 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 5 – subparagraph 2 – point b
Article 25 – paragraph 5 – subparagraph 2 – point b
(b) identify and quantify any further costs and charges, in particular distribution costs, that are notassess whether the total characteristic of the insurance-based investment product costs and charges already taken into account in the calculation of total costs and charges by the manufacturer justified and proportionate, having regard to the target market’s objectives and needs;
Amendment 779 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 5 – subparagraph 2 – point c
Article 25 – paragraph 5 – subparagraph 2 – point c
Amendment 786 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 5 – subparagraph 3
Article 25 – paragraph 5 – subparagraph 3
Amendment 798 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 6
Article 25 – paragraph 6
Amendment 802 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 7
Article 25 – paragraph 7
Amendment 813 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 8
Article 25 – paragraph 8
Amendment 835 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 9 – subparagraph 1 – introductory part
Article 25 – paragraph 9 – subparagraph 1 – introductory part
The Commission shall be empowered to supplement this Directive by adopting delegated acts in accordance with Article 38 to further specify the principles set out in this Article, including, with regard to insurance-based investment products, criteria to determine whether the product characteristics are justified and proportionate;
Amendment 843 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 10 – subparagraph 1 – introductory part
Article 25 – paragraph 10 – subparagraph 1 – introductory part
EIOPA, after having consulted ESMA and the competent authorities and after industry testing, and taking into consideration the methodology referred to in paragraph 9, point (a),impact assessment shall develop draft regulatory technical standards to determine the following:
Amendment 844 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 10 – subparagraph 1 – point a
Article 25 – paragraph 10 – subparagraph 1 – point a
(a) content and type of data to be reported to the home authorities in accordance with paragraph 4, based on existing disclosure and reporting obligations, unless additional data is exceptionally necessary;
Amendment 846 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 10 – subparagraph 2
Article 25 – paragraph 10 – subparagraph 2
EIOPA shall submit those draft regulatory technical standards to the Commission by [9 months after the adoption of the delegated act referred to in paragraph 2].entry into force of this Directive]
Amendment 870 #
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– introductory part
Article 29 – paragraph 1 – subparagraph 1– introductory part
Without prejudice to Article 18 and Article 19(1) and (2), Member States shall ensure that insurance intermediaries and insurance undertakings distributing insurance-based investment products provide customers in good time before the customers are bound by an insurance contract or offer, with appropriate information in personalised formtaking into account the profile of the customer, about the insurance-based investment products proposed to those customers. That information shall contain all of the following:
Amendment 875 #
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 1 – point a – subpoint ii
Article 29 – paragraph 1 – point a – subpoint ii
(ii) whether the advice is based on a broad or on a more restricted analysis of different types ofn analysis of the different types of insurance- based investment products that the distributor or the insurance undertakings distributing insurance-based investment products offer and, where applicable, underlying investment assets, and in particular, whether or not the range is limited to products and assets manufactured or provided by entities having close links withcontrolled by the insurance intermediary or insurance undertaking, or any other legal or economic relationships, such as contractual relationships, so close as t provided that this control so poses a risk of impairing the independent basis of the advice provided;
Amendment 876 #
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 1 – point a – subpoint iii
Article 29 – paragraph 1 – point a – subpoint iii
(iii) whether the insurance intermediary or insurance undertaking willmay provide the customer, under request, with a periodic assessment of the suitability of the insurance-based investment product recommended to that customer;
Amendment 877 #
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 1 – point a – subpoint iv
Article 29 – paragraph 1 – point a – subpoint iv
(iv) where the insurance intermediary or insurance undertaking provides independent advice to a retail customer, whether the range of insurance-based investment products that are recommended is restricted or not to well-diversified, non- complex (as referred to in Article 30(3)) and cost-efficient insurance-based investment products onlythe customer’s profile;
Amendment 879 #
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 1 – point a – subpoint v
Article 29 – paragraph 1 – point a – subpoint v
(v) in situations where the customer has communicated the possession of a portfolio to the insurance intermediaries or insurance undertakings distributing insurance-based investment products, how the recommended insurance- based investment products take into account the diversification of the customer’s portfolio;
Amendment 888 #
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 b
Article 29 – paragraph 1 – subparagraph 1 – point b
(b) a description of the main features of the proposed insurance-based investment product and, where applicable, any recommended underlying investment assets and investment strategies, including appropriate guidance on, and warnings of, the risks associated with the insurance-based investment products and, where applicable, the recommended underlying investment assets or in respect of particular investment strategies followed by that product;
Amendment 890 #
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 c
Article 29 – paragraph 1 – subparagraph 1 – point c
(c) information on the proposed insurance cover, including details of the insurance benefits and options and the circumstances that would trigger them, and, where applicable, a summary of the excluded risks and exclusions, where claims cannot be made;
Amendment 891 #
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 distributsummary of the details of all arrangements for any fee, commission, of the insurance-based investment product, and the cost of advice, where relevant, how the customer may pay for it and the duration of paymentr reward or remuneration paid or provided to the intermediary which it has agreed with the product producers;
Amendment 894 #
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
The information referred to in the first subparagraph, point (d), shall be accompanied bybrought to the attention of the consumer, and appropriate explanation, in a standardised and comprehensible language for an average retail customer, on the impact of the costs, charges and any third-party payments on the expected returnny clarification of the information provided, if requested by the consumer, before concluding a contract. An intermediary must retain records demonstrating that it has complied with this requirement.
Amendment 897 #
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 paymentsdisplay the summary referred to in the first subparagraph, point (d) in aggregated form to enable the customer to understand the overall cost and the cumulative effecas an individual number as opposed to a range, where possible. When an intermediary’s level of commission depends on individual circumstances and can only be displayed as a range, the intermediary must explain the arrangement oin 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, insurance intermediaries and insurance undertakings shall provide an itemised breakdown of that information.summary and the basis on which the level of commission within the range is decided must be disclosed, for example, at intermediary’s discretion, whether the level of commission is negotiable, length of time of the policy or length of the investment period. In this regard, the disclosure must specify which of the factors is relevant in respect of each arrangement
Amendment 901 #
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 4
Article 29 – paragraph 1 – subparagraph 4
Amendment 905 #
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 4
Article 29 – paragraph 1 – subparagraph 4
Member States shall ensure that manufacturers of insurance-based investment products draw up a concise personalised document containing keyadded- valuable information to be provided annually to each retail customer holding the product (‘“annual statement’)”), avoiding overlaps with the pre-contractual information.
Amendment 907 #
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 3
Article 29 – paragraph 2 – subparagraph 3
The information in the annual statement shall be accurate and up to datin real time.
Amendment 908 #
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 4
Article 29 – paragraph 2 – subparagraph 4
Manufacturers shall make the annual statement available to eachnew and existing retail policyholders free of charge through electronic formata digital and interactive online portal. A paper copy shall be provided only upon request in addition to any information available through electronic means.
Amendment 914 #
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 payments, expressed in an itemised waypercentages and, only when possible, 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 915 #
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 b
Article 29 – paragraph 3 – point b
(b) where possible in practice, the annual performance of each of the underlying investment assets of the insurance-based investment product and the annual global performance of the portfolio, each compared with past performance over previous years:
Amendment 919 #
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 f
Article 29 – paragraph 3 – point f
Amendment 925 #
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.
Amendment 929 #
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, clear and precise 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.
Amendment 932 #
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 3
Article 29 – paragraph 5 – subparagraph 3
EIOPA shall develop regulatory technical standards to further specify the format and content of such risk warnings, taking due account of the specificities of the different types of insurance-based investment products and types of communications, especially the specificities of multi-option products (MOPs).
Amendment 985 #
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 and available range of insurance-based investment products and, where applicable, underlying investment assets;
Amendment 990 #
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 b
Article 29 b – paragraph 1 – point b
(b) to recommend, the most caking into consideration its performance, level of risk, cost and changes reported, the most- efficient insurance-based investment product andor, where applicable, underlying investment assets among the insurance- based investment products identified as suitable for the customer pursuant to Article 30(1) and offering similar features;
Amendment 999 #
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 c
Article 29 b – paragraph 1 – point c