The Directive (EU) 2016/97 of 20 January 2016 on insurance distribution (IDD) authorises the European Commission to adopt certain delegated acts to define more precisely various regulatory requirements of the IDD. Such authorisations apply – generally with respect to all insurance products concerned except for those concerning large risks – to the topic product oversight and governance requirements (Art. 25 IDD) and – solely with respect to insurance-based investment products (IBIPs) – to the topics management of conflicts of interest (Art. 27 and Art. 28 IDD), inducements (Art. 29 IDD) and assessment of suitability and appropriateness and reporting to customers (Art. 30 IDD).
Based on technical advice provided by EIOPA, the European Commission published and notified the European Parliament and the Council of the EU on 21 September 2017 of two delegated acts on the denoted topics in the form of delegated regulations (C(2017)6218 final; C(2017)6229 final).
The EU Parliament and the Council expressed no objections and the delegated regulations were published in the Official Journal of the European Union on 20 December 2017 (L 341/1, L 341/8). As provided, both delegated regulations enter into force on 9 January 2018, twenty days after their publication (Art. 13 POG Regulation, Art. 20 IBIPs Regulation).
The rules of the delegated regulations will, without any need for national implementing laws, apply directly to the area of insurance distribution and therefore to insurance intermediaries (intermediaries) most likely as of 23 February 2018, which is also the original transposition and application date of the IDD.
Please note, however, that on 20 December 2017, the European Commission proposed to postpone the application date of the IDD by seven months to 1 October 2018. EU countries will, however, still be required to transpose the IDD into national law by the original date, 23 February 2018. In order to align the application dates, the Commission also proposed to postpone the application of the delegated regulations accordingly. However, the EU Parliament and the Council still have to agree on the new application date in an accelerated legislative procedure.
Based on the delegated regulation concerning IBIPs, CMS has produced this briefing note for and in cooperation with BIPAR. The note is addressed to the member associations of BIPAR and is intended to provide an overview and orientation on how the business organisation of intermediaries might need to be adapted with regard to the new rules.
This briefing note deals with the general IBIPs regulation requirements applicable to insurance undertakings (insurers) and intermediaries. Please note that the briefing note is not exhaustive and is provided solely for general information purposes. It should not be relied upon as legal advice. Professional advice should always be obtained before applying the information to particular circumstances.
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