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 delegated regulations will enter into force if no objection is expressed by the EU Parliament or the Council within a scrutiny period of three months of the notification or if, before the expiry of that period, the EU Parliament and the Council have both informed the Commission that they will not object. The delegated regulations will then be published in the Official Journal of the EU.
After entering into force, the rules of the implementing regulations will, without any need for national implem-enting laws, apply directly to the area of insurance distribution and therefore to insurance intermediaries (intermediaries) most likely as of 23 February 2018
Based on the delegated regulations concerning product oversight and governance ("POG") submitted by the Commission to Parliament and the Council, 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 POG regulation requirements applying for insurance undertakings (insurers) and intermediaries. It is based on the POG regulation as submitted by the European Commission which still requires formal validation by the European Parliament and the Council of the EU. Please note therefore that the regulation text may be subject to change, although we do not expect it to change substantially. Please note further 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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