Activities of Olle SCHMIDT related to 2012/0175(COD)
Plenary speeches (1)
Insurance mediation (debate)
Shadow reports (1)
REPORT on the proposal for a directive of the European Parliament and of the Council on the insurance mediation (recast) PDF (832 KB) DOC (632 KB)
Amendments (139)
Amendment 28 #
Proposal for a directive
Recital 30
Recital 30
(30) Consumers should be provided in advance with clear information about the status of the persons who sell the insurance product and about the remuneration which they receive. There is a need to introduce a mandatory status disclosure for European insurance intermediaries and insurance undertakings. This information should be given to the consumer at the pre- contractual stage. Its role is to show the relationship between the insurance undertaking and the intermediary (where applicable) as well as the structure, nature and the content of the intermediaries' remuneration.
Amendment 32 #
Proposal for a directive
Recital 40
Recital 40
(40) This Directive should specify the minimum obligations which insurance undertakings and insurance intermediaries should have in providing information to customers. A Member State should be able to in this area maintain or adopt more stringent provisions which may be imposed on insurance intermediaries and insurance undertakings independently of the provisions of their home Member State where they are pursuing insurance mediation activities on its territory provided that any such more stringent provisions comply with Union law, including Directive 2000/31/EC of the European Parliament and of the Council of 8 June 2000 on certain legal aspects of information society services, in particular electronic commerce, in the Internal Market (Directive on electronic commerce). A Member State which proposes to apply and applies provisions regulating insurance intermediaries and the sale of insurance products in addition to those set out in this Directive should ensure that the administrative burden stemming from these provisions is proportionate for consumer protection. In the interest of consumer protection and in order to prevent mis-selling of insurance products, Member States should be permitted to apply exceptionally the more stringent requirements to such insurance intermediaries conducting insurance mediation on an ancillary basis if they consider it necessary and proportionate.
Amendment 38 #
Proposal for a directive
Article 1 – paragraph 2 – point e
Article 1 – paragraph 2 – point e
Amendment 41 #
Proposal for a directive
Article 2 – paragraph 1 – point 3 – introductory part
Article 2 – paragraph 1 – point 3 – introductory part
(3). ‘insurance mediation’ means the activities of advising on , proposing or carrying out other work preparatory to the conclusion of contracts of insurance, concluding such contracts or assisting in the administration and performance of such contracts, in particular in the event of a claim , and the activity of professional management of claims and loss adjusting . These activities shall be considered to be insurance mediation also if carried on by an insurance undertaking without the intervention of an insurance intermediary. Comparing information regarding insurance products and prices on a website should be considered as insurance intermediation.
Amendment 43 #
Proposal for a directive
Article 2 – paragraph 1 – point 6 a (new)
Article 2 – paragraph 1 – point 6 a (new)
(6 a). In order to guarantee that the same level of protection applies and that the consumer can benefit from comparable standards it is essential that this Directive promotes a level playing field and competition on equal terms between intermediaries whether they tied to an insurance undertaking or not. There is a benefit to consumers if insurance products are mediated through various channels and intermediaries with different forms of cooperation with insurance undertakings provided they have to apply the same rules on consumer protection. It is important that these aspects are taken into account by the Member States in the implementation of this Directive.
Amendment 47 #
Proposal for a directive
Article 2 – paragraph 1 – point 9
Article 2 – paragraph 1 – point 9
(9). ‘advice’ means the provision of a personal recommendation to a customer, either upon their request or at the initiative of the insurance undertaking or the insurance intermediary;
Amendment 48 #
Proposal for a directive
Article 2 – paragraph 1 – point 10
Article 2 – paragraph 1 – point 10
(10). ‘'contingent commission’' means a remuneration in the form of a commission where the amount payable is based on the achievement of pre-agreed targets or thresholds relating to the volume of business placed by the intermediary with thate insurer;,
Amendment 55 #
Proposal for a directive
Article 3 – paragraph 5 a (new)
Article 3 – paragraph 5 a (new)
5 a. Registered insurance and reinsurance intermediaries shall be allowed to take up and pursue the activity of insurance and reinsurance mediation in the Union by means of both freedom of establishment and freedom to provide services
Amendment 59 #
Proposal for a directive
Article 4
Article 4
Amendment 62 #
Proposal for a directive
Article 6 – paragraph 1 a (new)
Article 6 – paragraph 1 a (new)
1 a. An insurance intermediary is operating under freedom of establishment if he carries on business in a host Member State for an indefinite period via a permanent presence in that Member State.
Amendment 82 #
Proposal for a directive
Article 13 – paragraph 1 – point a
Article 13 – paragraph 1 – point a
Amendment 106 #
Proposal for a directive
Article 17 – paragraph 1 a (new)
Article 17 – paragraph 1 a (new)
1 a. An insurance intermediary is regarded as providing advice on an independent basis only if the intermediary in its information to the customer has stated that this is the case.
Amendment 107 #
Proposal for a directive
Article 17 – paragraph 1 – point c – point i
Article 17 – paragraph 1 – point c – point i
(i) it gives advice on the basis of a fair and independent analysis, or
Amendment 108 #
Proposal for a directive
Article 17 – paragraph 1 – point c – point iii
Article 17 – paragraph 1 – point c – point iii
(iii) it is not under a contractual obligation to conduct insurance mediation business exclusively with one or more insurance undertakings and does not give advice on the basis of a fair and independent analysis. In that case, it shall provide the names of the insurance undertakings with which it may and does conduct business ;
Amendment 110 #
Draft legislative resolution
Citation 4 a (new)
Citation 4 a (new)
- having regard to the European Parliament legislative resolution of 5 July 2011 on the proposal for a directive of the European Parliament and of the Council amending Directive 97/9/EC of the European Parliament and of the Council on investor compensation schemes (COM(2010)0371 – C7-0174/2010 – 2010/0199(COD))- Schmidt report),
Amendment 111 #
Draft legislative resolution
Citation 4 b (new)
Citation 4 b (new)
- having regard to its position of 16 February 2012 on the proposal for a directive of the European Parliament and of the Council on Deposit Guarantee Schemes (recast)1, _______________ 1 Texts adopted, P7_TA(2012)0049
Amendment 112 #
Proposal for a directive
Recital 2
Recital 2
(2) Since the main objective and subject- matter of this proposal is to harmonise national provisions concerning the mentioned areas, the proposal should be based on Article 53(1) and 62 TFEU. The form of a Directive is appropriate in order to enable the implementing provisions in the areas covered by this Directive, when necessary, to be adjusted to any existing specificities of the particular market and legal system in each Member State. This Directive should also aim at coordinating national rules concerning the access to the activity of insurance and reinsurance mediation including professional management of claims and loss adjusting, and is therefore based on Article 53(1) of the Treaty. In addition, since this is a sector offering services across the Union, this Directive is also based on Article 62 of the Treaty.
Amendment 115 #
Proposal for a directive
Recital 4 a (new)
Recital 4 a (new)
(4a) In order to guarantee that the same level of protection applies and that the consumer can benefit from comparable standards it is essential that this Directive promotes a level playing field and competition on equal terms between intermediaries whether they are tied to an insurance undertaking or not. There is a benefit to consumers if insurance products are mediated through various channels and intermediaries with different forms of cooperation with insurance undertakings provided they have to apply the same rules on consumer protection. It is important that these aspects are taken into account by the Member States in the implementation of this Directive.
Amendment 117 #
Proposal for a directive
Recital 6
Recital 6
(6) European investors continue to experience different levels of disclosure and service across products, distribution channels and countries. In order to guarantee that the same level of protection applies regardless of the channel through which consumers buy an insurance product, either directly from an insurance undertaking or indirectly from an intermediary, the scope of the Directive needs to cover not only insurance undertakings but other market participants who sell insurance products on an ancillary basis (e.g. travel agents and car rental companies, suppliers of goods not meeting conditions for the exemption).
Amendment 120 #
Proposal for a directive
Recital 7 a (new)
Recital 7 a (new)
(7a) There is a need for open, transparent and competitive financial markets and a high level of investor protection.
Amendment 121 #
Proposal for a directive
Recital 8
Recital 8
(8) there are still substantial differences between national provisions which create barriers to the taking-up and pursuit of the activities of insurance and reinsurance intermediaries in the internal market; there is a need to further strengthen the internal market and create of a true European internal market for life and non life insurance products and services.
Amendment 122 #
Proposal for a directive
Recital 9
Recital 9
(9) Current and recent financial turbulence has underlined the importance of ensuring effective consumer protection across all financial sectors. It is appropriate therefore to strengthen the confidence of customers and to make regulatory treatment of the distribution of insurance products more uniform in order to ensure an adequate level of customer protection across the Union. Measures to protect customers should be adapted to the particularities of each category of customers (professional or other). The level of consumer protection should be raised in relation to the current directive in order to reduce the need for varying national measures. It is important to take into consideration the specific nature of insurance contracts in comparison to investment products regulated under MiFID. The distribution of insurance contracts, including so called insurance investment products should therefore be regulated under this Directive and be aligned with MiFID. The minimum standards need to be raised both with regards to distribution rules and a level playing field applicable to all packaged insurance investment products. Measures to protect customers should be higher for 'non professional' customers than 'professional' customers.
Amendment 127 #
Proposal for a directive
Recital 21
Recital 21
(21) The inability of insurance intermediaries to operate freely throughout the Union hinders the proper functioning of the single market in insurance. The insurance mediation Directive is an important step towards an increased level of consumer protection and market integration within the Internal Market.
Amendment 129 #
Proposal for a directive
Article 18 – paragraph 1 – introductory part
Article 18 – paragraph 1 – introductory part
1. Prior to the conclusion of any specific contract, the insurance intermediary – including tied ones– or insurance undertaking shall indentify , on the basis of information provided by or regarding the customer:
Amendment 130 #
Proposal for a directive
Recital 22
Recital 22
(22) It is important to guarantee a high level of professionalism and competence among insurance and reinsurance intermediaries and the employees of direct insurers who are involved in activities preparatory to, during and after the sales of insurance policies. Therefore, the professional knowledge of an intermediary, of the employees of direct insurers, and of car rental companies and travel agents, as well as the professional knowledge of persons carrying on the activities of the management of claims, loss adjusting or expert appraisal of claims needs to match the level of complexity of these activities. Continuing education should be ensuredInsurance and reinsurance intermediaries and direct insurers need to allow their staff sufficient time and resources to achieve this knowledge and competence and to apply it in providing services to clients.
Amendment 130 #
Proposal for a directive
Article 18 – paragraph 2
Article 18 – paragraph 2
2. The details referred to in points (a) and (b) of paragraph 1 shall be modulated according to the complexity of the insurance product being proposed and the level of financial risk to the customer and the distribution route.
Amendment 132 #
Proposal for a directive
Article 18 – paragraph 3
Article 18 – paragraph 3
3. When the insurance intermediary or the insurance undertaking inform the customer that it givprovides its advice on the basis of a fair analysis, it is obliged to givprovide that advice on the basis of an analysis of a sufficiently large number of insurance contracts available on the market, to enable it to make a recommendation, in accordance with professional criteria, regarding which insurance contract would be adequate to meet the customer's needs.
Amendment 133 #
Proposal for a directive
Recital 22 a (new)
Recital 22 a (new)
(22a) For those employees of an intermediary who advise on or sell insurance investment products to retail customer Member States shall ensure that they possess an appropriate level of knowledge and competence in relation to the products offered. This is particularly important given the increased complexity and the continuous innovation in the design of insurance investment products. Buying an insurance investment product implies a risk and investors must be able to rely on the information and quality of assessments provided. It is furthermore necessary that employees' are given adequate time and resources to be able to provide all relevant information to clients about the products they provide.
Amendment 133 #
Proposal for a directive
Article 18 – paragraph 4
Article 18 – paragraph 4
4. Prior to the conclusion of a contract, whether or not advice is givenprovided, the insurance intermediary or insurance undertaking shall givprovide the customer the relevant information about the insurance product in a comprehensible form to allow the customer to make an informed decision, while taking into account the complexity of the insurance product and the type of costumer. It shall be provided in a standardised information sheet, in a plain language, and containing the key information of the insurance contract.
Amendment 134 #
Proposal for a directive
Recital 28
Recital 28
(28) There is a need for appropriate and effective out-of-court complaint and redress procedures in the Member States in order to settle disputes between insurance intermediaries or undertakings and customers, using, where appropriate, existing procedures. Effective out-of-court complaint and redress procedures should be available to deal with disputes concerning rights and obligations established under this Directive between insurance undertakings or persons selling or offering insurance products and customers. In the case of alternative dispute resolution, the provisions of the European Parliament and of the Council on alternative dispute resolution for consumer disputes and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC should be binding also for this Directive. In order to enhance the effectiveness of out-of-court resolution of disputes procedures dealing with complaints submitted by customers, this Directive should provide that insurance undertakings or persons selling or offering insurance products have to participate in dispute resolution procedures, which do not result in a binding decisionand the decisions which upon explicit request may be binding for the intermediary and the customer, instituted against themselves by customers and concerning rights and obligations established under this Directive. Such out- of-court resolution of disputes procedures would aim to achieve a quicker and less expensive settlement of disputes between insurance undertakings or persons selling or offering insurance products and customers and lightening of the burden on the court system. However, out-of-court resolution of disputes procedures should not prejudice the rights of the parties to such procedures to bring legal proceedings before courts. Without prejudice to the right of customers to bring their action before the courts, Member States should ensure that ADR entities dealing with disputes referred to under this Directive cooperate in resolving cross-border disputes. Member States should encourage ADR entities dealing with such disputes to become part of FIN- NET.
Amendment 135 #
Proposal for a directive
Article 19 – paragraph 1
Article 19 – paragraph 1
1. The information referred to in Articles 16, 17 and 18 need not be givenprovided when the insurance intermediary or insurance undertaking mediates in the insurance of large risks, in the case of mediation by reinsurance intermediaries or reinsurance undertakings, or in relation to professional customers as specified in the Annex .
Amendment 136 #
Proposal for a directive
Article 19 – paragraph 2 a (new)
Article 19 – paragraph 2 a (new)
2 a. Member States which maintain or adopt stricter provisions applying to insurance intermediaries shall ensure that these provisions respect level playing field principles and that the administrative burden stemming from these provisions is proportionate relative to the consumer protection benefits.
Amendment 139 #
Proposal for a directive
Recital 29
Recital 29
(29) The expanding range of activities that many insurance intermediaries and undertakings carry on simultaneously has increased potential for conflicts of interest between those different activities and the interests of their customer. Consumers are not always aware of the conflict of interest which occurs when the insurance intermediary is remunerated by a commission from a third party. It is therefore necessary that Member States to provide for rules to ensure that such conflicts do not adversely affect the interests of the customer.
Amendment 139 #
Proposal for a directive
Article 21 – paragraph 1
Article 21 – paragraph 1
1. Member States shallmay allow bundling practices but not tying practices.
Amendment 144 #
Proposal for a directive
Recital 30
Recital 30
(30) Consumers should be provided in advance with clear information about the status of the persons who sell the insurance product and about the remuneration which they receive. There is a need to introduce a mandatory status disclosure for European insurance intermediaries and insurance undertakings. This information should be given to the consumer at the pre- contractual stage. Its role is to show the relationship between the insurance undertaking and the intermediary (where applicable) as well as the structure, content and the contentnature of the intermediaries' remuneration.
Amendment 150 #
Proposal for a directive
Recital 31
Recital 31
(31) In order to mitigate conflicts of interest between the seller and the buyer of an insurance product, it is necessary to ensure sufficienttotal disclosure of remuneration of insurance distributors. Customers should, in order to be able to trust an intermediary, be informed about any possible links between the intermediary and the third party and any financial inducements – even if the customer doesn't explicitly request such information. Accordingly, for lifeall insurance investment products, the intermediary and the employee of the insurance intermediary or the insurance undertaking should be obliged to inform the customer about its remuneration, in advance of the sale. For other insurance products, subject to a transitional period of 53 years, the customer must be informed of the customer's right to request this information, which must be provided to the customer upon request.
Amendment 153 #
Proposal for a directive
Recital 32
Recital 32
(32) In order to provide a customer with comparable information on the insurance mediation services provided regardless of whether the customer purchases through an intermediary, or directly from an insurance undertaking, and to avoid the distortion of competition by encouraging insurance undertakings to sell direct to customers rather than via intermediaries in order to avoid information requirements, insurance undertakings should also be required to provide information about remuneration to customers with whom they deal directly in the provision of insurance mediation services about the remuneration they receive for the sale of insurance products. Where the cost of fees and inducements cannot be ascertained prior to the provision of the advice, then the manner of calculation must be disclosed in a comprehensive, accurate and understandable manner in the key services documents with the total aggregate cost and its impact on returns of the advice being disclosed to the client as soon as practically possible thereafter. Where investment advice is provided on an ongoing basis disclosure as to the cost of investment advice, including inducements, must be provided on a periodic basis and at least annually. The periodic report shall disclose all inducements paid or received in the preceding period.
Amendment 155 #
Proposal for a directive
Recital 32 a (new)
Recital 32 a (new)
(32a) Any person selling insurance products, who is not the product manufacturer, should provide the retail investor in a separate key service document with details of their costs and services in accordance with this Directive and Directive [MiFID as recast] as well as additional relevant information needed for the retail investor to assess the appropriateness of the of the insurance product for their needs which cannot be provided by the investment product manufacturer.
Amendment 156 #
Proposal for a directive
Recital 32 b (new)
Recital 32 b (new)
(32b) There is a benefit to consumers if insurance products are sold through various channels and intermediaries with different forms of cooperation with insurance undertakings provided they have to apply the same rules on consumer protection and transparency.
Amendment 157 #
Proposal for a directive
Recital 34
Recital 34
(34) In order to avoid mis-selling cases, if necessary, the sale of insurance products should be accompanied with honest and professional advicewhere advice is given in the sale of insurance products the adviser shall be act honestly, professionally, and in the best interests of their customer. For those employees who advise on or sell insurance investment products to retail clients, Member States shall require insurance intermediaries and insurance undertakings ensure that their remuneration by the firm will not affect employees' impartiality in making a suitable recommendation or appropriate sale or presenting information in a form that is fair, clear and not misleading.
Amendment 160 #
Proposal for a directive
Recital 34 a (new)
Recital 34 a (new)
(34a) Member States shall require that remuneration policies of insurance intermediaries and insurance undertakings in relation to their employees or representatives do not impair the ability to act in the best interests of customers. For those employees who advise on or sell insurance investment products to customers, Member States shall require that insurance intermediaries and insurance undertakings ensure that their remuneration by the firm does not affect employees' impartiality in making a suitable recommendation or appropriate sale or presenting information in a form that is fair, clear and not misleading. Remuneration in such situations shall not be solely dependent on sales targets or the profit to the firm from a specific product.
Amendment 161 #
Proposal for a directive
Recital 36
Recital 36
(36) Due to the increasing dependence of consumers on personal recommendations, it is appropriate to include a definition of advice. The quality of advice is crucial and any advice should meet the personal characteristics of the customer. Before advice is provided, the insurance intermediary or undertaking should assess the customer's needs, demandexpectations and its financial situation. If the intermediary declares that it is giving advice on products from a broad range of insurance undertakings, it should carry out a fair and sufficiently wide-ranging analysis of tha sufficiently large number of insurance products available on the market. In addition, all insurance intermediaries and insurance undertakings should explain the reasons underpinning their advice and recommend suitable insurance products according to the customer's preferences, needs, financial situation and personal circumstances.
Amendment 164 #
Proposal for a directive
Recital 40
Recital 40
(40) This Directive should specify the minimum obligations whichfor insurance undertakings and insurance intermediaries should have in providing information to customers. A Member State should be able to in this area maintain or adopt more stringent provisions which may be imposed on insurance intermediaries and insurance undertakings independently of the provisions of their home Member State where they are pursuing insurance mediation activities on its territory provided that any such more stringent provisions comply with Union law, including Directive 2000/31/EC of the European Parliament and of the Council of 8 June 2000 on certain legal aspects of information society services, in particular electronic commerce, in the Internal Market (Directive on electronic commerce). A Member State which proposes to apply and applies provisions regulating insurance intermediaries and the sale of insurance products in addition to those set out in this Directive should ensure that the administrative burden stemming from these provisions is proportionate for consumer protection. In the interest of consumer protection and in order to prevent mis-selling of insurance products, Member States should be permitted to apply exceptionally the more stringent requirements to such insurance intermediaries conducting insurance mediation on an ancillary basis if they consider it necessary and proportionate. Such more stringent provisions must comply with Union law.
Amendment 167 #
Proposal for a directive
Recital 41
Recital 41
(41) Cross-selling practices are a common strategy for retail financial service providers throughout the Union. They can provide benefits to consumers but can also represent practices where the interest of consumers is not adequand can be appropriate stratelgy considered. For instance, certain forms of cross-selling practices or products, namely tying practices where two or more financial services are sold together in a package and at least one of those services or products is not available separately, can distort competition and negatively affect consumers' mobility and their ability to make informed choices. An example of tying practices can be the necessary opening of current accounts when an insurance service is provided to a consumer in order to pay the premiums or the necessary conclusion of a motor insurance contract when a consumer credit is provided to a consumer in order to insure the financed car. Whilefor retail financial service providers throughout the Union. The use of tying and bundling practicses of bundling, where two or more financial services or products are sold together in a package, but each of the services can also be purchased separately, may also distort competition and negatively affect customer mobility and customers' ability to make informed choices, they at least leave choice to the customer and may therefore present less risk to the compliance of insurance intermediaries with their obligations under this directive. The use of such practices should be carefully assessed in order to promote competition and consumer choice.
Amendment 170 #
Proposal for a directive
Recital 42
Recital 42
(42) Contracts of insurance that involve investments are often made available to customers as potential alternatives or substitutes to investment products subject to Directive [MiFID II]. To deliver consistent investor protection and avoid the risk of regulatory arbitrage, it is important that retail investment products (insurance investment products as defined in the Regulation on key information documents for investment products) are subject to the same conduct of business standards: these include provision of appropriate information, requirements for advice to be suitable and restrictions on inducements, as well as requirements to manage conflicts of interest, and in the case of independent advisers, further restrictions on the form of remuneration. The European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA) should work together to achieve as much consistency as possible in the conduct of business standards for retail investment products that are subject to either [MiFID II] or to this Directive through guidelines. For insurance investment products, the standards of this Directive which are applicable to all insurance contracts (Chapter VII of this Directive), and the enhanced standards for insurance investment products are cumulaThe specificities of non life insurance products must however be taken into account in these guidelines. Also, in line with the analogous principle in MIFID II article 3, there should be considered an analogous regime for insurances when implementing the Directive at national level and in the joint committee's guidelines. For insurance investment products, there should be enhanced conduct of business standards that replace the standards of this Directive which are applicable to general insurance contracts (Chapter VII of this Directive). Accordingly, persons carrying out insurance mediation in relation to insurance investment products should comply with the conduct standards applicable to all insurance contracts as well as to the enhanced standards applicable to insurance investmentsuch products.
Amendment 171 #
Proposal for a directive
Article 24 – paragraph 5 a (new)
Article 24 – paragraph 5 a (new)
5 a. Member States may impose extra requirements on insurance intermediaries or insurance undertakings who inform the customer that that investment advice is provided on an independent basis.
Amendment 172 #
Proposal for a directive
Recital 45
Recital 45
(45) In order to ensure a consistent application of sanctions across Member States, when determining the type of administrative sanctions or measures and the level of administrative pecuniary sanctions, Member States should be required to ensure that the competent authorities take into account all relevant circumstances. Member States are however not obliged to provide for administrative sanctions when national law provides for sanctions within the criminal justice system.
Amendment 173 #
Proposal for a directive
Recital 46
Recital 46
(46) In order to strengthen the dissuasive effect on the public at large and to inform about breaches of rules which may be detrimental to customer protection, sanctions and measures imposed should be published on the websites of the relevant competent authorities and EIOPA, except in certain well-defined circumstances. In order to ensure compliance with the principle of proportionality, sanctions and measures imposed should be published on an anonymous basis where publication would cause a disproportionate damage to the parties involved.
Amendment 174 #
Proposal for a directive
Recital 47
Recital 47
(47) In order to detect potential breaches, the competent authorities should have the necessary investigatory powers, and should establish effective mechanisms to encourage reporting of potential or actual breaches. However this Directive does not imply that Member States have to give administrative authorities the power to conduct criminal investigations.
Amendment 176 #
Proposal for a directive
Recital 49 a (new)
Recital 49 a (new)
(49a) Whistleblowers bring new information to the attention of competent authorities which assists them in detecting and sanctioning cases of insider dealing and market manipulation. However, whistleblowing may be deterred for fear of retaliation, or for lack of adequate procedures for reporting breaches. This Directive should therefore ensure that adequate arrangements are in place to encourage whistleblowers to alert competent authorities to possible breaches of this Directive and to protect them from retaliation. Member States should also ensure that whistleblowing schemes they implement include mechanisms that provide appropriate protection of a reported person, particularly with regard the right to the protection of his personal data and procedures to ensure the right of the reported person of defence and to be heard before the adoption of a decision concerning him as well as the right to seek effective remedy before a court against a decision concerning him.
Amendment 180 #
Proposal for a directive
Recital 51
Recital 51
(51) Technical standards in financial services should ensure consistent harmonisation and adequatehigh protection of consumers across the Union. As a body with highly specialised expertise, it would be efficient and appropriate to entrust EIOPA with the elaboration of draft regulatory and implementing technical standards which do not involve policy choices, for submission to the Commission.
Amendment 182 #
Proposal for a directive
Article 35 – paragraph 1
Article 35 – paragraph 1
1. Five years after the entry into force of this Directive, the Commission shall review this Directiveafter consulting the Joint Committee of European Supervisory Authorities review this Directive and submit a first report to the European Parliament and the Council. The review shall include a general survey of the practical application of rules laid down in this Directive taking due account of developments in the retail investment products markets as well as experiences acquired in practical application of this Directive and Regulation on key information documents for investment products and [MIFID II]. The review shall reflect on a possible application of the provisions of this Directive to products falling under the scope of Directive 2003/41/EC. This review shall also include a specific analysis of the impact of Article 17(2), taking into account the situation of competition on the market of intermediation services for contracts other than contracts in any of the classes specified in Annex I of Directive 2002/83/EC and the impact of the obligations referred to in Article 17(2) on insurance intermediaries which are small and medium sized enterprises.
Amendment 183 #
Proposal for a directive
Recital 55 a (new)
Recital 55 a (new)
(55a) The supervisory authorities of the Member States should have at their disposal all means necessary to ensure the orderly pursuit of business by insurance intermediaries and reinsurance undertakings throughout the Community whether pursued under the right of establishment or the freedom to provide services. In order to ensure the effectiveness of the supervision all actions taken by the supervisory authorities should be proportionate to the nature, scale and complexity of the risks inherent in the business of an insurance or reinsurance undertaking, regardless of the importance of the undertaking concerned for the overall financial stability of the market.
Amendment 184 #
Proposal for a directive
Recital 55 b (new)
Recital 55 b (new)
(55b) This Directive should not be too burdensome for small and medium-sized insurance undertakings. One of the tools by which to achieve that objective is the proper application of the proportionality principle. That principle should apply both to the requirements imposed on the insurance and reinsurance undertakings and to the exercise of supervisory powers.
Amendment 186 #
Proposal for a directive
Recital 56
Recital 56
(56) A review of this Directive should be carried out fivthree years after the date on which this Directive enters into force in order to take account of market developments as well as developments in other areas of Union law or Member States experiences in implementation of Union law, in particular with regard to products covered by Directive 2003/41/EC.
Amendment 187 #
Proposal for a directive
Article 1 – paragraph 1
Article 1 – paragraph 1
1. This Directive lays down rules concerning the taking-up and pursuit of the activities of insurance and reinsurance mediation, including professional management of claims and loss adjusting, by natural and legal persons which are established in a Member State or which wish to be established there.
Amendment 199 #
Proposal for a directive
Article 1 – paragraph 3 a (new)
Article 1 – paragraph 3 a (new)
3a. This Directive shall guarantee that the same level of protection applies and that the consumer can benefit from comparable standards. The Directive shall promote a level playing field and competition on equal terms between intermediaries whether they tied to an insurance undertaking or not. There is a benefit to consumers if insurance products are mediated through various channels and intermediaries with different forms of cooperation with insurance undertakings provided they have to apply the similar rules on consumer protection. This shall be taken into account by the Member States in the implementation of this Directive.
Amendment 204 #
Proposal for a directive
Article 2 – paragraph 1 – point 3 – subparagraph 1
Article 2 – paragraph 1 – point 3 – subparagraph 1
3. ‘'insurance mediation’' means the activities of advising on , proposing or carrying out other work preparatory to the conclusion of contracts of insurance, concluding such contracts or assisting in the administration and performance of such contracts, in particular in the event of a claim , and the activity of professional management of claims and loss adjusting , including price and product comparison websites when the customer is able to directly conclude an insurance contract at the end of the process by using a website or by concluding the contract of insurance directly with an insurance undertaking or another insurance intermediary. These activities shall be considered to be insurance mediation also if carried on by an insurance undertaking without the intervention of an insurance intermediary.
Amendment 210 #
Proposal for a directive
Article 2 – paragraph 1 – point 4
Article 2 – paragraph 1 – point 4
4. ‘'insurance investment product’' means a contract of insurance which could be also classified as an ‘'investment product’' as defined in Article 24(a), and excluding those products described in Article 2 of [Regulation on key information documents for investment products (PRIPs Regulation)];
Amendment 219 #
Proposal for a directive
Article 2 – paragraph 1 – point 8
Article 2 – paragraph 1 – point 8
8. ‘'tied insurance intermediary’' means any person who carries on the activity of insurance mediation for and on behalf of one or more insurance undertakings or registered insurance intermediaries,y in the case of insurance products which are not in competition and does not collect premiums or amounts intended for the customer and who acts under the full responsibility of those insurance undertakings or registered insurance intermediaries, for the products which concern them respectively provided that the registered insurance intermediariesy under whose responsibility the person acts does not themselves acthimself act under the responsibility of another insurance undertaking or intermediary; Any person who carries on the activity of insurance mediation in addition to his principal professional activity is also considered as a tied insurance intermediary acting under the responsibility of anotherone or several insurance undertakings or intermediaryregistered insurance intermediary if the insurance is complementary to the goods or services supplied in the framework of this principal professional activity and the person does not collect premiums or amounts intended for the customer;
Amendment 221 #
Proposal for a directive
Article 2 – paragraph 1 – point 9
Article 2 – paragraph 1 – point 9
9. ‘advice’ means the provision of a personal recommendation tailored to a customer, either upon their request or at the initiative of the insurance undertaking or the insurance intermediary; the activity of advice should be considered as a separate service that is distinct from the provision of information and explanations on the products;
Amendment 234 #
Proposal for a directive
Article 2 – paragraph 1 – point 19
Article 2 – paragraph 1 – point 19
(19) ‘'tying practice’' means the offering of one or more ancillarya requirement on the consumer to purchase one or more specific financial products or services with an insurance service or product in a package where this insurance service or product is not made available to the consumer separately. Tying practice does not refer to the optional offer of one or more insurance products as part of package where the primary product is not an insurance service.
Amendment 240 #
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
(20) ‘'bundling practice’' means the offering of one or more financillaryal products or services with an insurance service or product in a package where this insurance service or product is also made available to the consumer separately but not necessarily on the same terms or conditions as when offered bundled with the ancillaryother products or services.
Amendment 243 #
Proposal for a directive
Article 2 – paragraph 1 – point 20 a (new)
Article 2 – paragraph 1 – point 20 a (new)
(20a) 'professional client or customer' means a client or customer meeting the criteria laid down in Annex I.
Amendment 245 #
Proposal for a directive
Article 2 – paragraph 1 – point 20 b (new)
Article 2 – paragraph 1 – point 20 b (new)
(20b) 'retail client or customer' means a client or customer who is not a professional client or customer;
Amendment 251 #
Proposal for a directive
Article 3 – paragraph 1 – subparagraph 3
Article 3 – paragraph 1 – subparagraph 3
Member States may stipulate that, where an insurance or reinsurance intermediary acts under the responsibility of an insurance or reinsurance undertaking or of another registered insurance or reinsurance intermediary, the latter intermediary or the undertaking shall be responsible for ensuring that it meets the conditions for registration set out in this Directive. In such a case, the person or entity acceptintermediary, the insurance intermediary shall not provide the competent authority with the registration information in Article 3(7) and the insurance intermediary or undertaking responsibilityle shall, having been informed by the Member States of the matters set out in paragraph 7 of this Article, sub-paragraphs (a) and (b), be satisfied as to the matter set out in paragraph 7 of this Article, sub- paragraph (c) ensure that their insurance intermediary meets the conditions for registration and other provisions set out in this Directive. Member States may also stipulate that the person or entity which takes responsibility for the intermediary shall register that intermediary.
Amendment 257 #
Proposal for a directive
Article 3 – paragraph 5 – subparagraph 1
Article 3 – paragraph 5 – subparagraph 1
Member States shall ensure that the competent authorities do not register an insurance or reinsurance intermediary unless it is satisfied that the intermediary meets the requirements laid down in Article 8 or that another insurance entity ensures that the intermediary meets these requirements in accordance with Article 3 (1) paragraph 3.
Amendment 258 #
Proposal for a directive
Article 3 – paragraph 5 – subparagraph -1 (new)
Article 3 – paragraph 5 – subparagraph -1 (new)
Amendment 259 #
Proposal for a directive
Article 3 – paragraph 5 a (new)
Article 3 – paragraph 5 a (new)
5a. Registered insurance and reinsurance intermediaries shall be allowed to take up and pursue the activity of insurance and reinsurance mediation in the Union by means of both freedom of establishment and freedom to provide services.
Amendment 264 #
Proposal for a directive
Article 3 – paragraph 7 – introductory part
Article 3 – paragraph 7 – introductory part
7. As a condition of registration Member States shall ensure that their competent authorities request the following information from insurance and reinsurance intermediaries, as a condition of registration other than for tied intermediaries and those where another insurance entity ensures the intermediary meets these requirements in accordance with Article 3 (1) paragraph 3:
Amendment 266 #
Proposal for a directive
Article 3 – paragraph 7 – point a
Article 3 – paragraph 7 – point a
(a) to provide information to their competent authorities of the identities of shareholders or members, whether natural or legal persons, that have a holding in the intermediary that exceeds 10% and the amounts of those holdings;
Amendment 268 #
Proposal for a directive
Article 3 – paragraph 7 – point b
Article 3 – paragraph 7 – point b
(b) to provide information to their competent authorities of the identities of persons who have close links with the insurance or reinsurance intermediary;
Amendment 270 #
Proposal for a directive
Article 3 – paragraph 7 – point c
Article 3 – paragraph 7 – point c
(c) to demonstrate in a satisfactory mannerevidence that the holdings or close links do not prevent the effective exercise of the supervisory functions of the competent authority.
Amendment 272 #
Proposal for a directive
Article 3 – paragraph 7 – subparagraph 1 a (new)
Article 3 – paragraph 7 – subparagraph 1 a (new)
Where information provided under Article 3(7)(a) and (b) changes Member States shall ensure that competent authorities require that insurance and reinsurance intermediaries to whom Article 3(7) applies inform them without delay to competent authorities.
Amendment 278 #
Proposal for a directive
Article 4
Article 4
Amendment 297 #
Proposal for a directive
Article 8 – paragraph 1 – subparagraph 1
Article 8 – paragraph 1 – subparagraph 1
Insurance and reinsurance intermediaries , including those who pursue these activities on an ancillary basis, persons carrying on the activities of the professional management of claims, loss adjusting or expert appraisal of claims, and members of staff of insurance undertakings carrying out insurance mediation activities, shall possess appropriate knowledge and ability, as determined by the home Member State of the intermediary or undertaking after consultation with EIOPA, to complete their tasks and perform their duties adequately, demonstrating appropriate professional experience and competence relevant to the complexity of the products they are mediating. Member States shall ensure that insurance and reinsurance intermediaries and insurance undertakings provide sufficient and appropriate training to their staff to ensure that these provisions are complied with. Member States shall also make public the criteria they have established in order for intermediaries staff to meet their competence requirements. Such criteria shall include a list of any qualifications they recognise.
Amendment 301 #
Proposal for a directive
Article 8 – paragraph 1 – subparagraph 2
Article 8 – paragraph 1 – subparagraph 2
Member States shall ensure that insurance and reinsurance intermediaries and members of staff of insurance undertakings carrying out insurance mediation activities update their knowledge and ability through continuing professional development and sufficient and appropriate training in order to maintain an adequate level of performance.
Amendment 303 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 1
Article 8 – paragraph 2 – subparagraph 1
Insurance and reinsurance intermediaries and members of staff of insurance undertakings carrying out insurance mediation activities shall be of good repute. As a minimum, they shall have a clean policecriminal record or any other national equivalent in relation to serious criminal offences linked to crimes against property or other crimes related to financial activities and they should not have previously been declared bankrupt, unless they have been rehabilitated in accordance with national law.
Amendment 316 #
Proposal for a directive
Article 8 – paragraph 8 – introductory part
Article 8 – paragraph 8 – introductory part
8. The Commission shall be empowered to adopt delegated acts in accordance with Article 33. Those delegated actEIOPA shall develop draft regulatory technical standards. Those regulatory technical standards shall specify:
Amendment 320 #
Proposal for a directive
Article 8 – paragraph 8 a (new)
Article 8 – paragraph 8 a (new)
EIOPA shall submit those draft regulatory technical standards to the Commission by [...]*. Power is conferred on the Commission to adopt the regulatory technical standards in accordance with Articles 10-14 of Regulation (EU) No 1094/2010. ____________ * OJ please insert date: 18 months after the date of entry into force of this Directive.
Amendment 327 #
Proposal for a directive
Article 13 – paragraph 1 – introductory part
Article 13 – paragraph 1 – introductory part
1. In line with the Directive on Alternative dispute Resolution (Number XXX) and the Regulation on Online dispute Resolution (Number XXX) Member States shall ensure the setting- up of appropriate, effective, impartial and independent complaints and redress procedures for the out-of-court settlement of disputes between insurance intermediaries and customers, and between insurance undertakings and customers, using existing bodies where appropriate. Member States shall further ensure that all insurance undertakings and insurance intermediaries participate in the procedures for the out-of-court settlement of disputes where the following conditions are met:
Amendment 330 #
Proposal for a directive
Article 13 – paragraph 1 – point a
Article 13 – paragraph 1 – point a
(a) the procedure results in decisions which are not bindingupon explicit request may be binding for the intermediary and/or insurance undertaking and the client;
Amendment 343 #
Proposal for a directive
Article 14 – paragraph 1
Article 14 – paragraph 1
Member States shall ensure that, when using the services of the insurance or reinsurance intermediaries established in the EU, insurance and reinsurance undertakings and intermediaries use the insurance and reinsurance mediation services only of registered insurance and reinsurance intermediaries or of the persons referred to in Article 1(2) or of the persons who have fulfilled the declaration procedure referred to in Article 4.
Amendment 370 #
Proposal for a directive
Article 17 – paragraph 1 – introductory part
Article 17 – paragraph 1 – introductory part
1. Prior to the conclusion of any insurance contract, an insurance intermediary – including tied ones – shall provide the customer with at least the following information:
Amendment 398 #
Proposal for a directive
Article 17 – paragraph 1 – point f
Article 17 – paragraph 1 – point f
(f) if the intermediary will receive a fee ors a commission of any kind in relation to insurance mediation activity for insurance contracts specified in Annex I of Directive 2002/83/EC , the full monetary amount of the remuneratcommission concerning the insurance products being offered or considered or, where the precise amount is not capable of being given, the basis of calculation of all the fee or commission or the combination of both;
Amendment 405 #
Proposal for a directive
Article 17 – paragraph 1 – point f a (new)
Article 17 – paragraph 1 – point f a (new)
(fa) the monetary amount of any fee which an insurance intermediary charges to the customer.
Amendment 414 #
Proposal for a directive
Article 17 – paragraph 1 – point g
Article 17 – paragraph 1 – point g
(g) if the amount of the commission is based on the achievement of pre-agreed targets or thresholds relating to the volume of business placed by the intermediary with anthe insurer, the targets or thresholds as well as the amounts payable on the achievement of them.
Amendment 422 #
Proposal for a directive
Article 17 – paragraph 2 – introductory part
Article 17 – paragraph 2 – introductory part
2. By derogation from paragraph 1(f) for fivThree years fromafter the date on which this Directive comes into force, the intermediary ofin relation to insurance mediation for insurance contracts other than contracts in any of the classes specified in Annex I of Directive 2002/83/EC, shall, prior to the conclusion of any such insurance contract, if the intermediary is to be remunerated by a fee or commission, an insurance intermediary shall:
Amendment 427 #
Proposal for a directive
Article 17 – paragraph 2 – point a
Article 17 – paragraph 2 – point a
(a) provide the customer with the amount of any commission or, where the precise amount is not capable of being given, the basis of calculation of the fee or commission or the combination of bothany commission, if the customer so requests.
Amendment 455 #
Proposal for a directive
Article 17 – paragraph 5 – introductory part
Article 17 – paragraph 5 – introductory part
5. The Commission shall be empowered to adopt delegated acts in accordance with Article 33. Those delegated acts shallEIOPA shall develop draft regulatory technical standards to specify:
Amendment 458 #
Proposal for a directive
Article 17 – paragraph 5 – point b
Article 17 – paragraph 5 – point b
Amendment 460 #
Proposal for a directive
Article 17 – paragraph 5 a (new)
Article 17 – paragraph 5 a (new)
EIOPA shall submit those draft regulatory technical standards to the Commission by [...]*. Power is conferred on the Commission to adopt the regulatory technical standards in accordance with Articles 10-14 of Regulation (EU) No 1094/2010. _______________ * OJ please insert date: 18 months after the date of entry into force of this Directive.
Amendment 461 #
Proposal for a directive
Article 17 a (new)
Article 17 a (new)
Article 17 a Disclosure of information Member States may introduce or retain additional disclosure requirements for insurance mediators and insurance undertakings concerning the amount of remuneration, fees, commissions or non- monetary benefits in relation to the provision of advice provided that the Member State upholds a level playing field between all distribution channels and does not distort competition and comply with Union law.
Amendment 466 #
Proposal for a directive
Article 18 – paragraph 1 – introductory part
Article 18 – paragraph 1 – introductory part
1. PWhere advice is provided prior to the conclusion of any specific contract, the insurance intermediary – including tied ones – or insurance undertaking shall indentspecify, on the basis of information provided by the customer:
Amendment 473 #
Proposal for a directive
Article 18 – paragraph 1 – point b
Article 18 – paragraph 1 – point b
(b) and shall specify to the customer the underlying reasons for any advice provided to the customer on a specified insurance product , if given .
Amendment 483 #
Proposal for a directive
Article 18 – paragraph 3
Article 18 – paragraph 3
3. When the insurance intermediary or the insurance undertaking inform the customer that it givprovides its advice on the basis of a fair analysis, it is obliged to givprovide that advice on the basis of an analysis of a sufficiently large number of insurance contracts available on the market, to enable it to make a recommendation, in accordance with professional criteria, regarding which insurance contract would be adequate to meet the customer's needs.
Amendment 484 #
Proposal for a directive
Article 18 – paragraph 4
Article 18 – paragraph 4
4. Prior to the conclusion of a contract, whether or not advice is givenprovided, the insurance intermediary or insurance undertaking shall givprovide the customer the relevant information about the insurance product in a comprehensible form, in a key information document, in order to allow the customer to make an informed decision, while taking into account the complexity of the insurance product and the type of costumer. The information shall be provided in a standardised information sheet, in a plain language, and containing the key information of the insurance contract.
Amendment 492 #
Proposal for a directive
Article 18 – paragraph 4 a (new)
Article 18 – paragraph 4 a (new)
4a. The key information document shall be complemented by the production of a key services document by the person selling the insurance product reflecting the services provided to the retail investor.
Amendment 493 #
Proposal for a directive
Article 18 – paragraph 4 b (new)
Article 18 – paragraph 4 b (new)
4b. The key information document should include the costs associated with the insurance product, comprising both direct and indirect costs to be borne by the customer, including summary indicators of these costs and, for comparability reasons, total costs expressed in monetary and percentage terms, to show the effects of the total costs on the insurance;
Amendment 494 #
Proposal for a directive
Article 19 – paragraph 1
Article 19 – paragraph 1
1. The information referred to in Articles 16, 17 and 18 need not be givenprovided when the insurance intermediary or insurance undertaking mediates in the insurance of large risks, in the case of mediation by reinsurance intermediaries or reinsurance undertakings, or in relation to professional customers as specified in the Annex .
Amendment 496 #
Proposal for a directive
Article 19 – paragraph 2 a (new)
Article 19 – paragraph 2 a (new)
2a. Member States which maintain or adopt stricter provisions applying to insurance intermediaries and insurance undertakings shall ensure that these provisions are implemented in accordance with Union law.
Amendment 500 #
Proposal for a directive
Article 20 – paragraph 7
Article 20 – paragraph 7
7. In the case of telephone selling, the prior information given to the customer shall be in accordance with Union rules applicable to the distance marketing of consumer financial services. Moreover, information shall be provided to the customer in accordance with paragraph 1 or 2 immediately after the conclusion of the insurance contract. The customer shall be asked if he wants the information in the form of paper or in an electronic form.
Amendment 505 #
Proposal for a directive
Article 21 – paragraph 1
Article 21 – paragraph 1
1. Member States shall allow bundling practices but notand tying practices.
Amendment 508 #
Proposal for a directive
Article 21 – paragraph 1 a (new)
Article 21 – paragraph 1 a (new)
1a. Member States shall not allow unfair commercial practices as defined in Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to- consumer commercial practices in the internal market.
Amendment 512 #
Proposal for a directive
Article 21 – paragraph 2
Article 21 – paragraph 2
2. When an insurance service or product is offered together with another specific financial non insurance related service or product as a package, the insurance undertaking or, where applicable, the insurance intermediary shall offer and inform the customer thatwhether it is possible to buy the components of the package separately and shall provide information of the costs and charges of each component of the package that may be bought through or from it separately.
Amendment 525 #
Proposal for a directive
Article 21 – paragraph 3
Article 21 – paragraph 3
3. EIOPA shall develop, by 31 December [20XX] at the latest, in cooperation with the European Banking Authority and the European Securities and Markets Authority, through the Joint Committee of the European Supervisory Authorities, shall develop by [...] , and update periodically, guidelines for the assessment and the supervision of cross-selling practices indicating, in particular, situations in which cross-selling practices are not compliant with obligations set out in Articleson insurance intermediaries and insurance undertakings to act in the best interests of their clients as required under Article 16, 17 and Article 18 or paragraph 1 of this ArticlDirective.
Amendment 537 #
Proposal for a directive
Article 22 – paragraph 1 a (new)
Article 22 – paragraph 1 a (new)
The following parts of Chapter VI do not apply to Insurance intermediaries and insurance undertakings which conduct insurance mediation in relation insurance investment products: (a) Article 15 (b) Article 16 (a) (i) (ii) (iii) and (iv) (c) Article 16 (b) (i), (ii) and (iii) (d) Article 17 (1) (c), (d), (e), (f) and (g) (e) Article 17 (2), (3), (4) and (5) (f) Article 18
Amendment 538 #
Proposal for a directive
Article 22 – paragraph 1 b (new)
Article 22 – paragraph 1 b (new)
Article 23 (1) and (2) shall also apply to insurance intermediaries and insurance undertakings when carrying out insurance mediation in relation to all insurance products.
Amendment 539 #
Proposal for a directive
Article 22 – paragraph 1 c (new)
Article 22 – paragraph 1 c (new)
Member States may continue to apply or implement additional measures in relation the provisions in this Chapter provided that such provisions are consistent with Union law.
Amendment 540 #
Proposal for a directive
Article 22 – paragraph 1 d (new)
Article 22 – paragraph 1 d (new)
ESMA and EIOPA shall work together to achieve as much consistency as possible in the conduct of business standards for retail investment products that are subject to either [MiFID II] or to this Directive through technical standards adopted by the Commission.
Amendment 558 #
Proposal for a directive
Article 24 – paragraph 3 – point a
Article 24 – paragraph 3 – point a
(a) the insurance intermediary or insurance undertaking and its services. When investment advice is provided, information shall specify whether the advice is provided on an independent basis andin advance the basis on which the advice is provided including whether it is based on a broad or on a more restricted analysis of the market and shall indicate whether or not the insurance intermediary or insurance undertaking will provide the customer with the on-goinglient with a periodic assessment of the suitability of the insurance investment product recommended to the customer; clients and inform its client as to the total cost of the investment transaction as a single monetary amount including both fees paid directly by the client to the the insurance intermediary or insurance undertaking as well as any inducements paid by a third party. This disclosure must be provided to the client prior to the provision of the investment advice.
Amendment 565 #
Proposal for a directive
Article 24 – paragraph 3 – point c
Article 24 – paragraph 3 – point c
(c) costs and associated charges, including the remuneration of the intermediary, and associated charges including separate charges for advice and the cost of the product where advice is provided.
Amendment 570 #
Proposal for a directive
Article 24 – paragraph 4
Article 24 – paragraph 4
4. The information referred to in this Article should be provided in a comprehensible form in such a manner that the customers or potential customers are reasonably able to understand the nature and risks of the specific insurance product that is being offered and, consequently, to take investment decisions on an informed basis. This information may be provided in a standardised format. in a key information document. The key information document shall be complemented by the production of a key services document by the person selling the insurance product reflecting the services provided to the retail investor. A person selling an insurance investment product to retail customers shall provide them with the key information document and the key services document in good time before the conclusion of a transaction relating to the insurance investment product. Where an insurance investment product is recommended to a client, the key information document and the key services document shall be provided without delay.
Amendment 577 #
Proposal for a directive
Article 24 – paragraph 5 – introductory part
Article 24 – paragraph 5 – introductory part
5. WMember States shall require that when the insurance intermediary or insurance undertaking informs the customer that insurance advice is provided on an independent basis, the insurance intermediary or insurance undertaking shall disclose to the customer the nature of the remuneration received in relation to the insurance contract:
Amendment 581 #
Proposal for a directive
Article 24 – paragraph 5 – point a
Article 24 – paragraph 5 – point a
(a) assess a sufficiently large number of insurance products available on the market. The insurance products should be which are sufficiently diversified with regard to their type and issuers or product providers and shouldto ensure that the customer's insurance investment needs can be suitably met and is not be limited to insurance products issued or provided by entities having close links with the insurance intermediary or insurance undertaking; and
Amendment 586 #
Proposal for a directive
Article 24 – paragraph 5 – point a a (new)
Article 24 – paragraph 5 – point a a (new)
(aa) the nature of the remuneration received in relation to the insurance contract and whether in relation to the insurance investment contract, it works: (i) on the basis of a fee, that is the remuneration paid directly by the customer; or (ii) on the basis of a commission of any kind, that is included in the insurance premium; or (iii) on the basis of a combination of both (i) and (ii);
Amendment 587 #
Proposal for a directive
Article 24 – paragraph 5 – point a b (new)
Article 24 – paragraph 5 – point a b (new)
(ab) if the intermediary will receive a fee or a commission of any kind, the full amount of the remuneration concerning the insurance investment products being offered or considered or, where the precise amount is not capable of being given, the basis of calculation of the fee or commission or the combination of both. The fee or commission for the advice and the fee or commission of the product should be disclosed as separate amounts or calculations;
Amendment 588 #
Proposal for a directive
Article 24 – paragraph 5 – point a c (new)
Article 24 – paragraph 5 – point a c (new)
(ac) if the amount of the commission is based on the achievement of agreed targets or thresholds relating to the business placed by the intermediary with an insurer, the targets or thresholds as well as the amounts payable on the achievement of them.
Amendment 589 #
Proposal for a directive
Article 24 – paragraph 5 – point b
Article 24 – paragraph 5 – point b
Amendment 600 #
Proposal for a directive
Article 24 – paragraph 5 a (new)
Article 24 – paragraph 5 a (new)
5a. Member States shall ensure that the manner in which an insurance undertaking or insurance intermediary remunerates its staff or other tied agents does not impede compliance with its obligation to act in the best interests of clients. Member States shall ensure that where staff advise on, market or sell insurance products to retail clients, the remuneration structures involved do not prejudice their ability to provide an objective recommendation, where applicable, or to provide information in a manner that is fair, clear and not misleading in accordance with paragraph 2 and does not otherwise give rise to undue conflicts of interest. In particular, Member States shall ensure that: (a) remuneration is not largely dependent on targets for the sale or profitability of particular products; (b) remuneration or other arrangements including performance assessment do not provide an incentive to staff to not act in the interest of the client of the intermediary.
Amendment 601 #
Proposal for a directive
Article 24 – paragraph 5 b (new)
Article 24 – paragraph 5 b (new)
5b. An insurance intermediary is regarded as providing advice on an independent basis only if the intermediary in its information to the customer has stated that this is the case.
Amendment 606 #
Proposal for a directive
Article 24 – paragraph 6 a (new)
Article 24 – paragraph 6 a (new)
6a. Member States may under certain circumstances and after consultation with relevant stakeholders, prohibit or further restrict the offer or acceptance of fees, commissions or non-monetary benefits in relation to the provision of advice on insurance investment products provided that the Member State upholds a level playing field between all distribution channels and does not distort competition. This may include requiring any such fees, commissions or non-monetary benefits to be returned to the client or offset against fees paid by the client.
Amendment 616 #
Proposal for a directive
Article 25 – paragraph 2 – subparagraph 3
Article 25 – paragraph 2 – subparagraph 3
Where customers or potential customers do not provide the information referred to in the first subparagraph, or where they provide insufficient information regarding their knowledge and experience, the insurance intermediary or insurance undertaking shall warn them that the insurance intermediary or insurance undertaking is not in a position to determine whether the service or product envisaged is appropriate for them. This warning may be provided in a standardised format.
Amendment 619 #
Proposal for a directive
Article 25 – paragraph 2 a (new)
Article 25 – paragraph 2 a (new)
Amendment 621 #
Proposal for a directive
Article 25 – paragraph 4
Article 25 – paragraph 4
4. The customer must receive from the insurance intermediary or insurance undertaking adequate reports in a durable medium on the service provided to its customers. These reports shall include periodic communications to customers, taking into account the type and the complexity of insurance products involved and the nature of the service provided to the customer and shall include, where applicable, the costs associated with the transactions and services undertaken on behalf of the customer. When providing advice to retail clients, the insurance intermediary or insurance undertaking shall specifyprovide the customer with a record in a durable medium specifying at least the client's objectives, the recommendation and how the advice given meets the personal characteristics and objectives of the customer.
Amendment 627 #
Proposal for a directive
Article 26 a (new)
Article 26 a (new)
Amendment 632 #
Proposal for a directive
Article 27 – paragraph 1
Article 27 – paragraph 1
Member States shall provide that the competent authority publishes any sanction or measure that has been imposed for breaches of the provisions of the national provisions adopted in the implementation of this Directive without undue delay including information on the type and nature of the breach and the identity of persons responsible for it, unless such disclosure would seriously jeopardise insurance and reinsurance markets. The information shall be published on the website of the relevant competent authorities and EIOPA. Where the publication would cause a disproportionate damage to the parties involved, the competent authorities shall publish the sanctions on an anonymous basis.
Amendment 633 #
Proposal for a directive
Article 27 – paragraph 1 a (new)
Article 27 – paragraph 1 a (new)
Member States shall provide EIOPA annually with aggregated information about all administrative measures and sanctions imposed in accordance with paragraphs 1 and 2. EIOPA shall publish that information in an annual report.
Amendment 634 #
Proposal for a directive
Article 27 – paragraph 1 b (new)
Article 27 – paragraph 1 b (new)
Amendment 639 #
Proposal for a directive
Article 28 – paragraph 2 – subparagraph 1 – point a
Article 28 – paragraph 2 – subparagraph 1 – point a
(a) a warning or public statement, which indicates the natural or legal person and the nature of the breach;
Amendment 641 #
Proposal for a directive
Article 28 – paragraph 2 – subparagraph 1 – point d
Article 28 – paragraph 2 – subparagraph 1 – point d
(d) a temporary ban against any member of the management body of the insurance or reinsurance intermediary or insurance or reinsurance undertaking or any other natural person, who is held responsible, to exercise functions in insurance intermediaries or reinsurance intermediaries, or insurance or reinsurance undertakings;
Amendment 644 #
Proposal for a directive
Article 28 – paragraph 2 – subparagraph 1 – point f
Article 28 – paragraph 2 – subparagraph 1 – point f
(f) in case of a natural person, administrative pecuniary sanctions of up to 5 000 000 EUR, or in the Member States where the Euro is not the official currency, the corresponding value in the national currency on the date of entry into force of this Directive; and
Amendment 647 #
Proposal for a directive
Article 29 – paragraph 1 – introductory part
Article 29 – paragraph 1 – introductory part
1. Member States shall ensure that when determining the type of administrative sanctions or measures and the level of administrative pecuniary sanctions, the competent authorities shall take into account all relevant circumstances, including when appropriate:
Amendment 650 #
Proposal for a directive
Article 29 – paragraph 2
Article 29 – paragraph 2
Amendment 651 #
Proposal for a directive
Article 29 – paragraph 3
Article 29 – paragraph 3
3. This Directive shall not affect the power of the host Member States to take appropriate measures to prevent or to penalise irregularities committed within their territories which are contrary to legal or regulatory provisions adopted in the interest of the general good. This shall include the possibility of preventing offending insurance or reinsurance intermediaries from initiating any further activities within their territories. Member States may decide not to lay down rules for administrative sanctions for breaches which are subject to criminal sanctions.
Amendment 664 #
Proposal for a directive
Article 35 – paragraph 1
Article 35 – paragraph 1
1. Five years after the entry into force of this Directive, the Commission shall review this Directiveafter consulting the Joint Committee of European Supervisory Authorities review this Directive and submit a first report to the European Parliament and the Council. The review shall include a general survey of the practical application of rules laid down in this Directive taking due account of developments in the retail investment products markets as well as experiences acquired in practical application of this Directive and Regulation on key information documents for investment products and [MIFID II]. The review shall reflect on a possible application of the provisions of this Directive to products falling under the scope of Directive 2003/41/EC. This review shall also include a specific analysis of the impact of Article 17(2), taking into account the situation of competition on the market of intermediation services for contracts other than contracts in any of the classes specified in Annex I of Directive 2002/83/EC and the impact of the obligations referred to in Article 17(2) on insurance intermediaries which are small and medium sized enterprises.
Amendment 669 #
Proposal for a directive
Article 35 – paragraph 3
Article 35 – paragraph 3
3. By X X 20XX [fourtwo years after the entry into force of the Directive], and at least on a two-yearon an annual basis thereafter, EIOPA shall prepare a second report on the application of this Directive. EIOPA shall consult ESMA before making public its report.
Amendment 671 #
Proposal for a directive
Article 35 – paragraph 5
Article 35 – paragraph 5
5. A report to be prepared by EIOPA by X X 20XX [fourtwo years after the entry into force of the Directive] as referred to in paragraph 3 shall examine whether the competent authorities referred to in Article 10(1) are sufficiently empowered and have adequate resources to carry out their tasks.
Amendment 675 #
Proposal for a directive
Annex 2 – paragraph 8 a (new)
Annex 2 – paragraph 8 a (new)
The specificities of non life insurance products must however be taken into account in the Level 2 guidelines. In line with the analogous principle in MIFID II article 3, there should be considered an analogous regime for insurances when implementing the Directive at national level and in the joint committee's guidelines. Persons carrying out insurance mediation in relation to insurance investment products should comply with the conduct standards applicable to all insurance contracts as well as to the enhanced standards applicable to insurance investment products. Anyone intermediating in insurance investment products must be registered as an insurance intermediary.