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Activities of Ralf SEEKATZ related to 2023/0167(COD)

Shadow reports (1)

REPORT on the proposal for a directive of the European Parliament and of the Council amending Directives (EU) 2009/65/EC, 2009/138/EC, 2011/61/EU, 2014/65/EU and (EU) 2016/97 as regards the Union retail investor protection rules
2024/04/02
Committee: ECON
Dossiers: 2023/0167(COD)
Documents: PDF(523 KB) DOC(205 KB)
Authors: [{'name': 'Stéphanie YON-COURTIN', 'mepid': 197581}]

Amendments (123)

Amendment 106 #
Proposal for a directive
Recital 2
(2) Directives (EU) 2009/65/EC34 , 2009/138/EC35 , 2011/61/EU36 , 2014/65/EU37 and (EU) 2016/9738 of the European Parliament and of the Council. are designed to protect retail investors and seek to increase the confidence and ability of retail investors as they make important financial decisions. The Commission’s work to evaluate and assess this framework has identified a number of important problems, including difficulties for retail investors to understand and compare investment offers on the basis of disclosure documentation which is not sufficiently relevant and engaging to help their decision-making. In addition, the Commission’s work pointed to the growing risks related to misleading marketing information and practices provided via digital channels and shortcomings in the way products are manufactured and distributed that may result in unjustifiably high levels of costs for retail investors. The Commission’s work also pointed to risks of bias in the investment advice process. __________________ 34 Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (OJ L 302, 17.11.2009, p. 32). 35 Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.2009, p. 1). 36 Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 (OJ L 174, 1.7.2011, p. 1). 37 Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349). 38 Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution (OJ L 26, 2.2.2016, p.19).
2023/11/09
Committee: ECON
Amendment 108 #
Proposal for a directive
Recital 3
(3) Third party payments, such as fees, commissions or any monetary or non- monetary benefits paid to or received by investment firms and insurance undertakings and intermediaries by or from persons other than the client or customer, also termed as ‘inducements’, play a significant role in the distribution of retail investment products in the Union. The existing rules designed to manage conflicts of interests in Directives (EU) 2014/65 and (EU) 2016/97, including restrictions on and transparency around the payments of inducements, have not proven sufficiently effective in mitigating consumer detriment and have led to different levels of retail investor protection across product segments and distribution channels. It is therefore necessary to further strengthen the investor protection framework to ensure that retail clients’ best interests are protected uniformly across the Union. In light of the potential disruptive impact caused by the introduction of a full prohibition of inducements, it is appropriate to have a staged approach and first strengthen the requirements around the payment and receipt of inducements to address the potential conflicts of interest and ensure better protection of retail investors and, at a second stage, to review the effectiveness of the framework, an. Comprehensive consumer testing and an appropriate stakeholder consultation should precede the review. After that and if deemed necessary after assessing the indicators laid down in Art. 26a (6) the European Commission could propose alternative measures in line with Better Regulation rules, including a potential ban on inducements, if appropriate.
2023/11/09
Committee: ECON
Amendment 118 #
Proposal for a directive
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 adviceassesses a sufficiently large number of insurance products available on the market. 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. In view of the diversity of the insurance distribution structures in the Member States, it should also not prevent insurance intermediaries that are not employed by or contractually tied to an insurance undertaking but receive inducements from presenting themselves as not contractually tied to a specific insurance undertaking.
2023/11/09
Committee: ECON
Amendment 123 #
Proposal for a directive
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 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 The selection of financial products offered should take into account both, the size and business model of the investment firm as well as the investment objective of the client. After having identified suitable instruments for their clients, they should recommend athe product that carries additional features which carry extra costs tobest fits with the client or cus investomer, they should explicitly provide the reason for such a recommendation and disclose the extra costs incurrednt objectives, paying due attention to the costs of the products. 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 needs.
2023/11/09
Committee: ECON
Amendment 126 #
Proposal for a directive
Recital 8
(8) In order to enable the development of independent advice at a reasonable cost, independent advisors should be allowed to provide advice to retail investors on well-diversified, non-complex and cost-efficient products based on a more limited set of data collected for the suitability assessment. The scope of such advice should be clearly disclosed to retail investors in good time before the provision of the advice. Given the diversified nature of the advised products, independent financial advisors should not be required to obtain and assess information from the clients relating to their knowledge and experience or existing portfolios.deleted
2023/11/09
Committee: ECON
Amendment 132 #
Proposal for a directive
Recital 9
(9) In order to assess the effectiveness of these measures, threewo years after the date of entry into force of this Directivenational implementation of all Level 1 and Level 2 measures and after having consulted the European Securities and Markets Authority (‘ESMA’) and European Insurance and Occupational Pensions Authority (‘EIOPA’), the Commission should prepare a report on the effects of third-party payments on retail investments which, where necessary, should be accompanied by proposals to further strengthen the framework.
2023/11/09
Committee: ECON
Amendment 154 #
Proposal for a directive
Recital 18
(18) Directives 2009/65/EC and 2011/61/EU require alternative investment funds (AIFs) andrequire undertakings for the collective investment in transferable securities (UCITS) management companies to act with due skill, care and diligence in the best interests of the investment fund they manage and of their investors. AIFs and UCITS management companies should therefore prevent undue costs from being charged to investment funds and their investors. AIFs and UCITS management companies should be required to establish a sound pricing process which should comprise the identification, analysis and review of costs charged, directly or indirectly, to investment funds or their unit holders, and thus borne by investors. Costs should be considered to be due if they comply with UCITS and AIFs pre- contractual documents, are necessary to their functioning, and are borne by investors in a fair way.
2023/11/09
Committee: ECON
Amendment 156 #
Proposal for a directive
Recital 19
(19) UCITS and AIFs management companies should compensate investors where undue costs have been charged, including where costs have been miscalculated to the detriment of investors, and inform the competent authorities, financial auditors of the investment funds and their managers, and the depositary of those funds thereof. To promote better enforcement and achieve concrete results for retail investors, harmonisation of Member States' administrative and sanctioning powers is necessary. The obligation to compensate investors should be added as a possible administrative measure and sanction so that this possibility exists in all Member States.
2023/11/09
Committee: ECON
Amendment 162 #
Proposal for a directive
Recital 20
(20) The pricing process under Directives 2009/65/EC and 2011/61/EU should ensure that costs borne by retail investors are justified and proportionate to the characteristics of the product, and in particular to the investment objective and strategy, level of risk and expected returns of the funds, so that UCITS and AIFs deliver Value for Money to investors. UCITS and AIFs management companies should remain responsible for the quality of their pricing process. In particular, they should ensure that costs are comparable to market standards, including by comparing the costs of funds with similar investment strategies and characteristics available on publicly available databases. However, to make the pricing process more objective and to equip UCITS and AIFs management companies, and competent authorities with a tool allowing for an efficient comparison of costs among investment products from the same product type, ESMA should develop benchmarks, based on data related to the cost and performance of investment products that ESMA receives as part of the supervisory reporting, against which an assessment of Value for Money can be carried out, in addition to the other criteria included in the pricing process of UCITS and AIFs management companies. Considering the Commission’s priority to avoid unnecessary administrative burdens and to simplify reporting requirements, those benchmarks should build on existing data from public disclosures and supervisory reporting, unless additional data are exceptionally necessary. Investment funds offering poor Value for Money or deviating from ESMA's benchmarks should not be marketed to retail investors unless further assessment has established that the product nevertheless offers Value for Money. The assessment and the measures taken should be documented and provided to competent authorities upon their request.
2023/11/09
Committee: ECON
Amendment 163 #
Proposal for a directive
Recital 21
(21) The Commission should be empowered to adopt delegated acts specifying the minimum requirements for the pricing process to prevent undue costs from being charged to the UCITS, AIFs and their unit-holders, and for carrying out the Value for Money assessment and, where needed, for taking corrective measures where costs are not justified or proportionate to the expected returns of the UCITS and AIFs where available, their level of risk, investment objective and strategy, and for documenting such assessment and measures.
2023/11/09
Committee: ECON
Amendment 192 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Directive 2014/65/EU
Article 4 – paragraph 1 – point 66
(66) ‘marketing communication’ means any disclosure of information other than a disclosure required by Union or national law, or other than the financial education material referred to in Article 88b, or other than investment research that meet the conditions to be treated as such, that directly or indirectly promotes or entices investments in one or several financial instruments or categories of financial instruments or the use of investment or ancillary services provided by an investment firm that is made: information intended to induce the addressees to acquire a financial instrument or commission an investment service. Information that is merely used in an advertising situation does not necessarily have the goal of sales promotion. Neutral product information made available to meet obligations to provide advice appropriate to the investment and the client does not fall under the definition of marketing;
2023/11/09
Committee: ECON
Amendment 193 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Directive 2014/65/EU
Article 4 – paragraph 1 – point 66 – subpoint c
(c) in any form and by any means;; Non-product or non-service-related marketing communications, such as image and brand advertising by or on behalf of investment firms, shall not be considered as marketing communication for the purposes of this Directive.
2023/11/09
Committee: ECON
Amendment 196 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Directive 2014/65/EU
Article 4 – paragraph 1 – point 67 – subpoint a
(a) directly or indirectly disseminate marketing communications;
2023/11/09
Committee: ECON
Amendment 199 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Directive 2014/65/EU
Article 4 – paragraph 1 – point 67 – subpoint b
(b) accelerate or improve the reach and effectiveness of the marketing communications;deleted
2023/11/09
Committee: ECON
Amendment 200 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Directive 2014/65/EU
Article 4 – paragraph 1 – point 67 – subpoint c
(c) promote in any waythe sales of investment firms, financial instruments or investment services;
2023/11/09
Committee: ECON
Amendment 248 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – subparagraph 3
TWhen conducting the pricing process referred to in point (e) shall include a comparison with the relevant benchmark, where available, on costs and performance published by ESMA in accordance with paragraphinvestment firms should take account of the information displayed in the relevant national comparison website referred to in para 9.
2023/11/09
Committee: ECON
Amendment 254 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – subparagraph 4
When a financial instrument deviates from the relevant benchmark referred to in paragraph 9, the investment firm shall perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If justification and proportionality of costs and charges cannot be demonstrated, the financial instrument shall not be approved by the investment firm.deleted
2023/11/09
Committee: ECON
Amendment 274 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 2 – subparagraph 2
The competent authorities shall transmit data referred to in point (a) and (b) to ESMA without undue delay.deleted
2023/11/09
Committee: ECON
Amendment 277 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 3
3. An investment firm that offers or recommends financial instruments which it does not manufacture, shall have in place adequate arrangements to obtain the information referred to in the last subparagraph of paragraph 1 and to understand the characteristics and identified target market of each financial instrument.
2023/11/09
Committee: ECON
Amendment 298 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 4 – subparagraph 3
The pricing process, as referred to in points (a) and (b), shall include a comparison with the relevant benchmark, when available, on costs and performance published by ESMA in accordance with paragraph 9.deleted
2023/11/09
Committee: ECON
Amendment 307 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 4 – subparagraph 4
When a financial instrument, together with costs of services incurred by the client in order to purchase that instrument, deviates from the relevant benchmark referred to in paragraph 9, the investment firm which offers or recommends a financial instrument shall perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If justification and proportionality of costs and charges cannot be demonstrated, the financial instrument shall not be offered or recommended by the investment firm.deleted
2023/11/09
Committee: ECON
Amendment 318 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 5 – subparagraph 2
The competent authorities shall transmit such details of costs of distribution to ESMA without undue delay.deleted
2023/11/09
Committee: ECON
Amendment 323 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 6 – subparagraph 1
An investment firm which offers or recommends financial instruments falling under the definition of packaged retail products in accordance with Article 4(1) of Regulation (EU) No 1286/2014, manufactured by a manufacturer that is not subject to the reporting obligation laid down in paragraph 2 or any other equivalent reporting obligation, shall report to their home competent authorities the following: (a) financial instrument destined for retail investors, including any distribution costs that are incorporated into costs of financial instrument, including third- party payments; (b) data on the characteristics of the financial instruments, in particular its performance and the level of risk.deleted details of costs and charges of any
2023/11/09
Committee: ECON
Amendment 325 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 6 – subparagraph 1 – point a
(a) details of costs and charges of any financial instrument destined for retail investors, including any distribution costs that are incorporated into costs of financial instrument, including third- party payments;deleted
2023/11/09
Committee: ECON
Amendment 327 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 6 – subparagraph 1 – point b
(b) data on the characteristics of the financial instruments, in particular its performance and the level of risk.deleted
2023/11/09
Committee: ECON
Amendment 329 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 6 – subparagraph 2
The competent authorities shall transmit such data without undue delay to ESMA.deleted
2023/11/09
Committee: ECON
Amendment 331 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 7
7. An investment firm shall document all assessments made and shall, upon request, provide such assessments to a relevant competent authority, including the following: (a) comparison of the financial instrument to the relevant benchmark; (b) justifying a deviation from the benchmark; (c) of the proportionality of costs and charges of the financial instrument.deleted where relevant, the results of the where applicable, the reasons the justification and demonstration
2023/11/09
Committee: ECON
Amendment 340 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 7 – point a
(a) where relevant, the results of the comparison of the financial instrument to the relevant benchmark;deleted
2023/11/09
Committee: ECON
Amendment 344 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 7 – point b
(b) where applicable, the reasons justifying a deviation from the benchmark;deleted
2023/11/09
Committee: ECON
Amendment 345 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 7 – point c
(c) the justification and demonstration of the proportionality of costs and charges of the financial instrument.deleted
2023/11/09
Committee: ECON
Amendment 355 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 9 – subparagraph 1
After having consulted EIOPA and the competent authorities, ESMA shall, where appropriate, develop and make publicly available common benchmarkcriteria for national comparison websites for financial instruments that present similar levels of performance, risk, strategy, objectives, or other characteristics, to help investment firms to perform the comparative assessment ofMember States shall make available national comparison websites to help investors to better understand the costs and performance of financial instruments, falling under the definition of packaged retail investment products, both at the manufacturing and distribution stages. When defining the relevant comparison groups, aspects such as an active fund management, capital protection, sustainability factors or the provision of personal advice, the number of branches or a broad multi-channel offering shall be considered.
2023/11/09
Committee: ECON
Amendment 359 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 9 – subparagraph 2
The benchmarknational comparison websites shall display a range of costs and performance, in order to facilitate the investors the identification of financial instruments whose costs and performance depart significantly from the average.
2023/11/09
Committee: ECON
Amendment 361 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 9 – subparagraph 3
The costs used for the development of benchmarks for investment firms manufacturing financial instrumentthe comparison websites shall, in addition to the total product cost, allow comparison to individual cost components. The costs used for the development of benchmarkcomparison websites for distributors shall, in addition to the total cost of the product, refer to the distribution cost.
2023/11/09
Committee: ECON
Amendment 363 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 9 – subparagraph 4
ESMA shall regularly update the benchmarkcriteria for the national comparison websites.
2023/11/09
Committee: ECON
Amendment 372 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 11 – point a
(a) the methodology used by ESMA to develop benchmarkthe methodology for national comparison websites referred to in paragraph 9;
2023/11/09
Committee: ECON
Amendment 375 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
(b) the criteria to determine whether costs and charges are justified and proportionatewithin the relevant comparison groups.
2023/11/09
Committee: ECON
Amendment 384 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 12 – subparagraph 1 – point a
(a) the content and type of data and details of costs and charges to be reported to the competent authorities in accordance with paragraph 2, 5 and 6,5 based on disclosure and reporting obligations, unless additional data is exceptionally necessary;
2023/11/09
Committee: ECON
Amendment 387 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 12 – subparagraph 1 – point b
(b) the data standards and formats, methods and arrangements, frequency and starting date for the information to be reported in accordance paragraph 2, 5 and 65.
2023/11/09
Committee: ECON
Amendment 398 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 12 – subparagraph 3 a (new)
3a. Five years after the application of Directive (EU) and after having consulted ESMA and EIOPA, the Commission shall assess the impact of the new comparison website on the costs of financial instruments in order to assess if further measures need to be taken.
2023/11/09
Committee: ECON
Amendment 411 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Directive 2014/65/EU
Article 24 – paragraph 1 a – point a
(a) Taking into account the size and business model of the investment firm and the investment objectives of the client, to provide advice on the basis of an assessment of an appropriate range of financial instruments;
2023/11/09
Committee: ECON
Amendment 418 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Directive 2014/65/EU
Article 24 – paragraph 1 a – point b
(b) to recommend the most cost- efficient financial instruments among financial instruments identified as suitable to the client pursuant to Article 25(2) and offering similar features;or if the equivalent product with higher costs is recommended to justify this with objective reasons and keep records of the justification.
2023/11/09
Committee: ECON
Amendment 423 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Directive 2014/65/EU
Article 24 – paragraph 1 a – point c
(c) to recommend, among the range of financial instruments identified as suitable to the client pursuant to Article 25(2), a product or products without additional features that are not necessary to the achievement of the client’s investment objectives and that give rise to extra costs.;deleted
2023/11/09
Committee: ECON
Amendment 450 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g
Directive 2014/65/EU
Article 24 – paragraph 5 c – subparagraph 2
ESMA shall after consulting the relevant stakeholders, by [18 months after the entry into force of the amending Directive], develop, and update periodically, guidelines on the concept of particularly risky financial instruments taking due account of the specificities of the different types of instruments. For this purpose, the concept of “leveraged financial instruments” laid down in Article 62(2) of the Commission Delegated Regulation (EU) 2017/265 should be taken into account.
2023/11/09
Committee: ECON
Amendment 466 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point j – point i
Directive 2014/65/EU
Article 24 – paragraph 13 – introductory part
The Commission shall be empowered to adopt delegated acts in accordance with Article 89 to ensure that investment firms comply with the principles set out in this Article, Article 24a and Article 24b when providing investment or ancillary services to their clients, including:;
2023/11/09
Committee: ECON
Amendment 467 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point j – point ii
Directive 2014/65/EU
Article 24 – paragraph 13 – subparagraph1 – point d
(d) the criteria to assess compliance of firms providing investment advice to retail clients, notably those receiving inducement, with the obligation to act in the best interest of their clients as set out in paragraphs 1 and 1a.;
2023/11/09
Committee: ECON
Amendment 477 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 1
1. Member States shall ensure that investment firms, when providing portfolio management, do not pay or receive any fee or commission, or provide or are provided with anyshall not accept and retain any fee or commission, any monetary or non-monetary benefits, in connection with the provision of such service, to orpaid or provided by any party except the client or a person on behalf of the client.
2023/11/09
Committee: ECON
Amendment 488 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 2
2. Member States shall ensure that investment firms, when providing reception and transmission of orders or execution of orders to or on behalf of retail clients, do not pay or receive any fee or commission, or provide or are provided with any non-monetary benefit in connection with the provision of such services, to or from any third-party responsible for the creation, development, issuance or design of any financial instrument on which the firm provides such execution or reception and transmission services, or any person acting on behalf of that third-party.deleted
2023/11/09
Committee: ECON
Amendment 508 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 4 – subparagraph 1
Paragraph 2 shall not apply to fees or any other remuneration received from or paid to an issuer by an investment firm performing for that issuer one of the services referred to in Annex I, Section A, points 6 and 7, where the investment firm also provides to retail clients any of the investment services referred to in paragraph 2 and relating to the financial instruments subject to the placing or underwriting services.deleted
2023/11/09
Committee: ECON
Amendment 509 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 4 – subparagraph 1
Paragraph 2 shall not apply to feesinvestment firms, when providing: a) investment advice orn any other remuneration received from or paid to an issuer by an investment firm performing for that issuer one of the services referred to in Annex I, Section A, points 6 and 7, where the investment firm also provides to retail clients any of the non- independent basis relating to one or more transactions of that client covered by that advice; or b) investment services in accordance with Article 25(3) to clients that, in good time before providing such investment services for the first time after this requirement enters into force, have been offered to clients with the option to receive commission-free investment services, in which clients have expressly agreed that the investment firm may receive and retain commission, or other monetary or non-monetary benefits. The investment firm shall ensure that it discloses the cost structure applicable to its provision of investment services referred to inprovided under paragraphs 2 and relating to the financial instruments subject to the placing or underwriting services. 3 in good time, before such services are provided, for the first time after this requirement enters into force. The disclosure information can be provided in a standardised format.
2023/11/09
Committee: ECON
Amendment 512 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 4 – subparagraph 2
This paragraph shall not apply to financial instruments that are packaged retail investment products as referred to Article 4, point (1), of Regulation (EU) No 1286/2014.deleted
2023/11/09
Committee: ECON
Amendment 519 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 5 a (new)
5a. Member States shall ensure that investment firms are regarded as not fulfilling their obligations under paragraph 3 of this Article where they pay or are paid any fee or commission, or provide or are provided with any non- monetary benefit in connection with the provision of an investment service or an ancillary service, to or by any party except the client or a person on behalf of the client, other than where the payment or benefit : (a) is designed to reduce the fees charged to the customer base or enhance the quality of the relevant service to the client and (b) does not impair compliance with the investment firm’s duty to act honestly, fairly and professionally in accordance with the best interest of its clients. The existence, nature and amount of the payment or benefit referred to in the first subparagraph, or, where the amount cannot be ascertained, the method of calculating that amount, must be clearly disclosed to the client, in a manner that is comprehensive, accurate and understandable, prior to the provision of the relevant investment or ancillary service. Where applicable, the investment firm shall also inform the client on mechanisms for transferring to the client the fee, commission, monetary or non- monetary benefit received in relation to the provision of the investment or ancillary service. The payment or benefit which enables or is necessary for the provision of investment services, such as custody costs, settlement and exchange fees, regulatory levies or legal fees, and which by its nature cannot give rise to conflicts with the investment firm’s duties to act honestly, fairly and professionally in accordance with the best interests of its clients, is not subject to the requirements set out in the first subparagraph. A fee, commission or non-monetary benefit shall be considered to be designed to enhance the quality of the relevant service to the client if all of the following conditions are met: (a) it is justified by the provision of an additional or higher level service to the relevant client, proportional to the level of inducements received, such as: (i) the provision of non-independent investment advice on and access to a wide range of suitable financial instruments including an appropriate number of instruments from third party product providers having no close links with the investment firm; (ii) the provision of non-independent investment advice combined with either: an offer to the client, at least on an annual basis, to assess the continuing suitability of the financial instruments in which the client has invested; or with another on-going service that is likely to be of value to the client such as advice about the suggested optimal asset allocation of the client; or (iii) the provision of access, at a competitive price, to a wide range of financial instruments that are likely to meet the needs of the client, including an appropriate number of instruments from third party product providers having no close links with the investment firm, together with either the provision of added-value tools, such as objective information tools helping the relevant client to take investment decisions or enabling the relevant client to monitor, model and adjust the range of financial instruments in which they have invested, or providing periodic reports of the performance and costs and charges associated with the financial instruments; (iv) the provision of access to a broad network of investment advisors to ensure the client's access to investment advisors providing investment advice face-to-face or via telecommunication and online services; (b) it does not directly benefit the recipient firm, its shareholders or employees without tangible benefit to the relevant client; (c) it is justified by the provision of an on- going benefit to the relevant client in relation to an on-going inducement. A fee, commission or non-monetary benefit shall not be considered acceptable if the provision of relevant services to the client is biased or distorted as a result of the fee, commission or non-monetary benefit.
2023/11/09
Committee: ECON
Amendment 545 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 1 – subparagraph 2 – point d
(d) how the client may pay for them.deleted
2023/11/09
Committee: ECON
Amendment 550 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 1 – subparagraph 3
Member States shall ensure that investment firms aggregate the information on all costs and associated charges to enable the client to understand the overall cost, of the financial instruments and the cumulative effect on return of the investment. Member States shall ensure that investment firms express the overall cost in monetary terms and percentages calculated up to the maturity date of the financial instrument or for financial instruments without a maturity date, the holding period recommended by the investment firm, or in the absence thereof, a reasonable holding periods of 1, 3 and 5 years. Where the client so requests, investment firms shall provide an itemised breakdown.
2023/11/09
Committee: ECON
Amendment 555 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 1 – subparagraph 4
The third-party payments paid or received by the investment firm in connection with the investment service provided to the client shall be itemised separately. The investment firm shall disclose the cumulative impact of such third-party payments, including any recurring third- party payments, on the net return over the holding period as mentioned in the preceding subparagraph. The purpose of the third-party payments and their impact on the net returnpurpose of the third-party payments shall be explained in a standardised way and in a comprehensible language for an average retail client.
2023/11/09
Committee: ECON
Amendment 556 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 1 – subparagraph 5
Where the amount of any costs, associated charges or third-party payments cannot be ascertained prior to the provision of the relevant investment or ancillary service, the method of calculating the amount shall be clearly disclosed to the client in a manner that is comprehensible, accurate and understandable for an average retail client.deleted
2023/11/09
Committee: ECON
Amendment 561 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 1 – subparagraph 6
Investment firms providing investment services to professional clients shall have the right to agree to a limited application of the detailed requirements set out in this paragraph, with such clients. Investment firms shall not be allowed to agree such limitations when the services of investment advice or portfolio management are provided or when, irrespective of the investment service provided, the financial instruments concerned embed a derivative.deleted
2023/11/09
Committee: ECON
Amendment 566 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 1 – subparagraph 7
Investment firms providing investment services to eligible counterparties shall have the right to agree to a limited application of the detailed requirements set out in this paragraph, except when, irrespective of the investment service provided, the financial instruments concerned embed a derivative and the eligible counterparty intends to offer them to its clients.deleted
2023/11/09
Committee: ECON
Amendment 573 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 2 – subparagraph 1 – point b
(b) the standard terminology and brief and concise related explanations to be used by investment firms for the disclosure and calculation of any costs, associated charges and third- party payments charged directly or indirectly by firms to the client or potential client in connection with the provision of any investment service(s) or ancillary service(s) and the manufacturing and managing of financial instruments to be recommended or marketed to the client or potential client. Explanations related to those costs, associated charges and third- party payments and their impact on the expected returns, shall ensure that they are likely to be understood by any average retail client without specific knowledge on investments in financial instruments.
2023/11/09
Committee: ECON
Amendment 576 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 3 – subparagraph 1 – introductory part
Where the agreement to buy or sell a financial instrument is concluded using a means of distance communication which prevents the prior delivery of the information on costs and charges, charges and third- party payments , the investment firm may provide the information on costs and charge, charges and third-party payments either in electronic format or on paper, where requested by a retail client, without undue delay after the conclusion of the transaction, provided that the following conditions are met:
2023/11/09
Committee: ECON
Amendment 579 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 4 – subparagraph 1 – point b
(b) the total amount of dividends, interest and other payments received annually by the retail client for the total portfolio;deleted
2023/11/09
Committee: ECON
Amendment 580 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 4 – subparagraph 1 – point c
(c) the total taxes, including any stamp duty, transactions tax, withholding tax and any other taxes where levied by the investment firm, borne by the retail client for the total portfolio;deleted
2023/11/09
Committee: ECON
Amendment 583 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 4 – subparagraph 1 – point e
(e) the net annual performance of the portfolio of the retail client and the annual performance of each of the financial instruments included in this portfolio.deleted
2023/11/09
Committee: ECON
Amendment 588 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Where providing exclusively a service of safekeeping and administration of financial instruments for the account of the retail client, the investment firm shall provide an annual statement including applicable information on point (a), (b), (c) and (d).
2023/11/09
Committee: ECON
Amendment 590 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 4 – subparagraph 4
Upon its request, the retail client shall be entitled to receive each year a detailed breakdown of the information referred to under point (a) toand (cd) above per financial instrument owned during the relevant period as well as for each tax borne by the retail client. When several investment firms need to provide an annual statement to the client, it is sufficient to provide one statement that contains all the information foreseen in subparagraph 2 and 3.
2023/11/09
Committee: ECON
Amendment 600 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24c – paragraph 2 – subparagraph 2
All marketing communications shall presentmake available in in a prominent and concise way, through clicking, scrolling, swiping or scanning, the essential characteristics of the financial instruments or the investment services and related ancillary services to which they refer. The information shall be made accessible, depending on the characteristics of the medium, via a nested display, scroll over, through a QR- code, or similar.
2023/11/09
Committee: ECON
Amendment 608 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24c – paragraph 2 – subparagraph 3
The presentation of the essential characteristics of the financial instruments and services includedmade available in the marketing communications provided or made accessible to retail or potential retail clients, shall ensure that they can easily understand the key features of the financial instruments or services as well as the main risks associated with them.
2023/11/09
Committee: ECON
Amendment 622 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24c – paragraph 8 – point a
(a) the essential characteristics of financial instrument(s) or investment and ancillary service(s) to be disclosedmade available through clicking, scrolling, swiping or scanning in all marketing communications targeting retail clients or potential retail clients and any other relevant criteria to ensure that those essential characteristics made available in all marketing communications through clicking, scrolling, swiping or scanning appear in a prominent way and are easily accessible by an average retail client, regardless of the means of communication;
2023/11/09
Committee: ECON
Amendment 638 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Directive 2014/65/EU
Article 25 – paragraph 2 – subparagraph 1
Subject to the second subparagraph, when providing investment advice or portfolio management services, the investment firm shall obtain the necessary information regarding the client or potential client’s knowledge and experience in the investment field relevant to the specific type of product or service, that client’s financial situation, and if agreed with the client including the composition of any existing portfolios, its ability to bear full or partial losses, investment needs and objectives including sustainability preferences, if any, and risk tolerance, so as to enable the investment firm to recommend to the client or potential client the investment services or financial instruments that are suitable for that person, and, in particular, are in accordance with its risk tolerance, ability to bear losses and need for portfolio diversification. Investment firms inform the client that there are two sorts of investment advice: Investment advice with regard to the concrete financial instrument and portfolio advice (investment advice with regard to the portfolio) and explain the differences. On this ground, the client can decide which sort of advice he likes to receive.
2023/11/09
Committee: ECON
Amendment 653 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Directive 2014/65/EU
Article 25 – paragraph 3 – subparagraph 1
Member States shall ensure that investment firms, when providing investment services other than those referred to in paragraph 2, ask the client or potential client to provide information regarding their knowledge and experience in the investment field relevant to the specific type of product or service offered or demanded, and for the retail client or potential retail client, the capacity to bear full or partial losses and risks tolerance so as to enable the investment firm to assess whether the investment service(s) or financial instrument(s) envisaged is appropriate for the client.
2023/11/09
Committee: ECON
Amendment 667 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 a (new)
Directive 2014/65/EU
Article 29a – paragraph 1 – subparagraph 1
Article 29a, paragraph 1 is amended as follows: “1. The requirements laid down in point (c) ofArticle 24 and Article 24a and Article 24(4)b shall not apply to services provided to professional clients except for investment advice and portfolio management. .” Or. en (Directive 2014/65/EU)
2023/11/09
Committee: ECON
Amendment 668 #
Proposal for a directive
Article 1 – paragraph 1 – point 15 – point a
Directive 2014/65/EU
Article 30 – paragraph 1 – subparagraph 1
Member States shall ensure that investment firms authorised to execute orders on behalf of clients, and/or to deal on own account, and/or to receive and transmit orders have the possibility of bringing about or entering into transactions with eligible counterparties without being obliged to comply with Article 16(3a), Article 24 with the exception of paragraphs 5, 5a and 5c thereof, Article 24a, Article 24b, with the exception of paragraph 1, Article 24c, Article 25, Article 27 and Article 28(1), in respect of those transactions or in respect of any ancillary service directly relating to those transactions.;
2023/11/09
Committee: ECON
Amendment 692 #
Proposal for a directive
Article 2 – paragraph 1 – point 1 – point c
Directive (EU) 2016/97
Article 2 – paragraph 1 – point 20
(20) ‘marketing communication’ means any disclosure of information other than a disclosure required by Union or national law or other than the financial education material referred to in Article 16b, that directly or indirectly promotes insurance products or directly or indirectly entices investments in insurance- based investment products and that is made:
2023/11/09
Committee: ECON
Amendment 693 #
Proposal for a directive
Article 2 – paragraph 1 – point 1 – point c
Directive (EU) 2016/97
Article 2 – paragraph 1 – point 20 - subpoint c
(c) in any form and by any means;; Non-product or non-service-related marketing communications, such as image and brand advertising by or on behalf of insurance undertakings or insurance intermediaries, shall not be considered as marketing communication for the purposes of this Directive.
2023/11/09
Committee: ECON
Amendment 694 #
Proposal for a directive
Article 2 – paragraph 1 – point 1 – point c
Directive (EU) 2016/97
Article 2 – paragraph 1 – point 21 – subpoint a
(a) directly or indirectly disseminate marketing communications;
2023/11/09
Committee: ECON
Amendment 724 #
Proposal for a directive
Article 2 – paragraph 1 – point 13 – point b
Directive (EU) 2016/97
Article 20– paragraph 5
5. In relation to the distribution of non-life insurance products as listed in Annex I to Directive 2009/138/EC and to life insurance products as listed in Annex II to Directive 2009/138/EC other than insurance-based investment products, and other than life insurance products within the meaning of Article 2 (1) No. 17 (c) to (e), the information referred to in paragraph 4 of this Article shall be provided to retail customers by way of a standardised insurance product information document on paper or on another durable medium.;
2023/11/09
Committee: ECON
Amendment 726 #
Proposal for a directive
Article 2 – paragraph 1 – point 13 – point c – point ii
Directive (EU) 2016/97
Article 20– paragraph 8 – point j a (new)
(ja) information on the right of withdrawal pursuant to Article 25a
2023/11/09
Committee: ECON
Amendment 728 #
Proposal for a directive
Article 2 – paragraph 1 – point 13 – point d
Directive (EU) 2016/97
Article 20– paragraph 8 a – introductory part
8a. For life insurance products other than insurance-based investment products, and other than life insurance products within the meaning of Article 2 (1) No. 17 (c) to (e), the insurance product information document shall contain the following:
2023/11/09
Committee: ECON
Amendment 730 #
Proposal for a directive
Article 2 – paragraph 1 – point 13 – point d
Directive (EU) 2016/97
Article 20 – paragraph 8 a – point d
(d) information on the premiums for each benefit, both main benefits and supplementary benefits, where applicable;deleted
2023/11/09
Committee: ECON
Amendment 731 #
Proposal for a directive
Article 2 – paragraph 1 – point 13 – point d
Directive (EU) 2016/97
Article 20 – paragraph 8 a – point j
(j) an indication of surrender and paid-up values and the extent to which they are guaranteed;deleted
2023/11/09
Committee: ECON
Amendment 732 #
Proposal for a directive
Article 2 – paragraph 1 – point 13 – point d
Directive (EU) 2016/97
Article 20 – paragraph 8 a – point l
(l) general information on the tax rules applicable to the type of insurance policy;deleted
2023/11/09
Committee: ECON
Amendment 741 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 1 – subparagraph 2 – point f
(f) in relation to insurance-based investment products, a clear identification and quantification of all costs and charges related to the product and an assessment of whether these costs and charges are justified and proportionateconsistent with the identified target market’s objectives and needs, having regard to the characteristics, objectives, strategy and performance of the product, as well as the guarantees and insurance coverage of biometric and other risks (pricing process);
2023/11/09
Committee: ECON
Amendment 753 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 1 – subparagraph 3
TWhen conducting the pricing process referred to in point (f) shall the manufacturer should take accountain a comparison with the relevant benchmark, where available, on costs and performance published by EIOPA in accordance with of the information displayed in the relevant national comparison website referred to in paragraph 8.
2023/11/09
Committee: ECON
Amendment 757 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25– paragraph 2
2. When an insurance-based investment product which deviates from the relevant benchmark referred to in paragraph 8, the manufacturer shall perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If justification and proportionality of costs and charges cannot be demonstrated, the insurance- based investment product shall not be approved by the manufacturer. Where no relevant benchmark exists for an insurance-based investment product, a manufacturer shall approve the product only if it has established through product testing and assessments that the costs and charges are justified and proportionate and that the product meets the target market’s objectives and needs.deleted
2023/11/09
Committee: ECON
Amendment 788 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 5 – subparagraph 3
TWhen conducting the pricing process referred to in point (c) shall include, where available, a comparison with the relevant benchmark on costs and performance published by EIOPA in accordance withmanufacturers should take account of the information displayed in the relevant national comparison website referred to in paragraph 8.
2023/11/09
Committee: ECON
Amendment 796 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 6
6. When an insurance-based investment product deviates from the relevant benchmark referred to in paragraph 8, the insurance intermediary or insurance undertaking distributing insurance-based investment products shall perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If justification and proportionality of costs and charges cannot be demonstrated, the insurance intermediary or insurance undertaking shall not advise on or propose the insurance-based investment product to retail customers. Where no relevant benchmark exists for an insurance-based investment product, distributors shall only advise on or propose the product, if they have established through product testing and assessments that the costs and charges are justified and proportionate and that the product meets the target market’s objectives and needs.deleted
2023/11/09
Committee: ECON
Amendment 815 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 8 – subparagraph 1
EIOPA, after having consulted ESMA and the competent authorities, shall, where appropriate, develop and make publicly available common benchmarkcriteria for national comparison websites for insurance-based investment products that present similar levels of performance, risk, strategy, objectives, or other characteristics to help insurance undertakings and insurance intermediaries manufacturing or distributing insurance-based investment products to perform the comparative assessment of the cost and performance of insurance-based investment products. , Member States shall make available national comparison websites to help consumers to better understand the costs and performance of insurance-based investment products. When defining the relevant comparison groups, aspects such as an active fund management, capital protection and other guarantees, recommended holding period, sustainability factors or the provision of personal advice, biometric protection, premium frequency, annuities and other relevant qualitative features shall be considered.
2023/11/09
Committee: ECON
Amendment 822 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive 2014/65/EU
Article 25 – paragraph 8 – subparagraph 2
The benchmarknational comparison websites shall display a range of costs and performance, in order to facilitate the consumer the identification of insurance-based investment products whose costs and performance depart significantly from the average.
2023/11/09
Committee: ECON
Amendment 823 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 8 – subparagraph 3
The costs used for the development of benchmarkthe national comparison websites shall, in addition to the total product cost, also include all costs of distribution, inclusive inducements. They shall allow comparison with individual cost components.
2023/11/09
Committee: ECON
Amendment 828 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 8 – subparagraph 4
EIOPA shall regularly update those benchmarkse criteria for the comparison website.
2023/11/09
Committee: ECON
Amendment 837 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 9 – subparagraph 1 – point a
(a) the methodology to be used by EIOPA to develop the benchmarkmethodology for national comparison websites referred to in paragraph 8;
2023/11/09
Committee: ECON
Amendment 839 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 9 – subparagraph 1 – point b
(b) the criteria to determine whether costs and charges are justified and proportionatewithin the relevant comparison groups;
2023/11/09
Committee: ECON
Amendment 848 #
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 12 a (new)
12a. Five years after the application of Directive (EU) and after having consulted ESMA and EIOPA, the Commission shall assess the impact of the new comparison website on the costs of insurance-based investment products in order to assess if further measures need to be taken.
2023/11/09
Committee: ECON
Amendment 850 #
Proposal for a directive
Article 2 – paragraph 1 – point 16 a (new)
Directive (EU) 2016/97
Article 25 a (new)
(16a) the following article is inserted : Article 25a Right of Withdrawal 1. The Member States shall ensure that the consumer shall have a period of 14 calendar days to withdraw from an insurance contract without penalty and without giving any reason. This period may be extended to 30 calendar days for life insurance products. The period for withdrawal referred to in the first subparagraph shall begin from one of the following days: (a) the day of the conclusion of the insurance contract, (b) if that is later than the date in point (a) of this subparagraph, the day on which the consumer receives the contractual terms and conditions and: (i) for insurance products referred to in Article 20 (8) and (8a), the insurance product information document; (ii) for insurance-based investment products, the information in accordance with Article 29. If the consumer has not received the contractual terms and conditions and the information referred to in subparagraph 1 (b), the withdrawal period shall in any case expire 12 months and 14 days after the conclusion of the insurance contract. This shall not apply if the consumer has not been informed about his right of withdrawal. The information on the withdrawal right may be provided by means of the model instructions on withdrawal set out in Annex IV. The distributor shall have fulfilled the information requirements on the withdrawal right under this Directive, if he has supplied these instructions to the consumer, correctly filled in. 2. The right of withdrawal shall not apply to the following: (a) travel and baggage insurance policies or similar short-term insurance policies of less than one month's duration; (b) contracts whose performance has been fully completed by both parties at the consumer's express request before the consumer exercises his right of withdrawal. 3. The consumer shall have exercised his or her right of withdrawal within the withdrawal period referred to in paragraph 1 if the communication concerning the exercise of the right of withdrawal is sent by the consumer before that period has expired. 4. Where an ancillary service relating to the insurance contract is provided by the distributor or by the third party on the basis of an agreement between that third party and the trader, the consumer shall not be bound by the ancillary contract, if the consumer exercises his or her right of withdrawal in accordance with this Article. Where the consumer chooses to terminate the ancillary contract, it shall be without any costs for the consumer. 5. This Article shall be without prejudice to any rule of national law establishing a period of time during which the performance of the contract may not begin.
2023/11/09
Committee: ECON
Amendment 855 #
Proposal for a directive
Article 2 – paragraph 1 – point 18
Directive (EU) 2016/97
Article 26 a – paragraph 2 – subparagraph 2
All marketing communications of insurance-based investment products shall presentmake available , in a prominent and concise way through clicking, scrolling, swiping or scanning, the essential characteristics of the insurance-based investment products to which they refer. The information shall be made accessible, depending on the characteristics of the medium, via a nested display, scroll over, through a QR-code, or similar.
2023/11/09
Committee: ECON
Amendment 860 #
Proposal for a directive
Article 2 – paragraph 1 – point 18
Directive (EU) 2016/97
Article 26 a – paragraph 5
5. Member States shall ensure that insurance undertakings and insurance intermediaries make annual reports to their management body on the use of marketing communications and strategies aimed at marketing practices, the compliance with relevant obligations on marketing communications and practices under this Directive and on any signalled irregularities and proposed solutions.deleted
2023/11/09
Committee: ECON
Amendment 862 #
Proposal for a directive
Article 2 – paragraph 1 – point 18
Directive (EU) 2016/97
Article 26 a – paragraph 7 – subparagraph 1
Member States shall ensure that insurance undertakings and insurance intermediaries keep records of all their marketing communications of insurance- based investment products, or their marketing communications made by any third party remunerated or incentivised through non-monetary compensation.deleted
2023/11/09
Committee: ECON
Amendment 867 #
Proposal for a directive
Article 2 – paragraph 1 – point 18
Directive (EU) 2016/97
Article 26 a – paragraph 8 – subparagraph 1 – point a
(a) the essential characteristics of insurance-based investment products to be disclosedmade available through clicking, scrolling, swiping or scanning in all marketing communications targeting retail customers or potential retail customers and any other relevant criteria to ensure that those essential characteristics made available in all marketing communications through clicking, scrolling, swiping or scanning appear in a prominent way and are easily accessible by an average retail customer, regardless of the means of communication;
2023/11/09
Committee: ECON
Amendment 922 #
Proposal for a directive
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 4
4. The information described in paragraph 1 and the annual statement referred to in paragraphs 2 and 3 shall be provided to retail customers and policyholders by using a Union standardised terminology and format. EIOPA shall, after having consulted ESMA and after conducting consumer testing and industry testing, develop draft regulatory technical standards to specify: (a) provision of the information listed in paragraphs 1 and 3, including the form and the length of the document, and the content of each of the elements of information; (b) terminology and related explanations to be used for the provision of the information listed in paragraphs 1 and 3. The explanations shall ensure that they are likely to be understood by any retail customer without specific knowledge on insurance-based investment products; EIOPA shall submit those draft regulatory technical standards to the Commission by [OJ: insert date 18 months after the date of entry into force]. Power is conferred on the Commission to supplement this Directive by adopting the regulatory technical standards referred to in the third subparagraph in accordance with Article 10 of Regulation (EU) No 1094/2010.deleted the relevant format for the the Union standardised
2023/11/09
Committee: ECON
Amendment 940 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 1
1. Member States shall ensure that insurance intermediaries or insurance undertakings that manufacture insurance-based investment products or distribute such products in accordance with Article 30(2) and (3) do not pay or receive any fee or commission, or provide or are provided with any non-monetary benefit with regard to the provision or distribution of an insurance based investment product, to or by any party except the customer or a person on behalf of the customer. The prohibition contained in the first sub- paragraph shall not apply to minor non- monetary benefits of a total value below EUR 100 per annum or of a scale and nature such that those benefits do not impair compliance with the insurance intermediary’s or insurance undertaking’s duty to act in the best interests of their customer provided those benefits have been clearly disclosed to the customer. Any payment or benefit which enables or is necessary for the provision of services, including regulatory levies or legal fees, and which by its nature cannot give rise to conflicts with the insurance intermediary’s or insurance undertaking’s duty to act honestly, fairly and professionally in accordance with the best interests of their customers, shall not be subject to the requirements set out in the first subparagraph.deleted
2023/11/09
Committee: ECON
Amendment 964 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 5
5. The Commission shall be empowered to supplement this Directive by adopting delegated acts in accordance with Article 38 to further specify: (a) how insurance intermediaries and insurance undertakings are to comply with the principles set out in this Article; (b) compliance of insurance intermediaries and insurance undertakings paying or receiving inducements with the obligation to act honestly, fairly and professionally in accordance with the best interests of the customer.the criteria for assessing
2023/11/09
Committee: ECON
Amendment 975 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 6
6. Threewo years after the date of entry into force of Directive (EU) [OP Please introduceimplementation of all Level 1 and Level 2 measures in the nuMember of the amending Directive]States and after having consulted ESMA and EIOPA, the Commission shall assess the effects of third-party payments on retail investors, in particular in view of potential conflicts of interest and as regards the availability of independent advice, and shall evaluate the impact of the relevant provisions of Directive (EU) [OP Please introduce the number of the amending Directive] on retail investors. If necessary to prevent consumer detriment, the Commission shall propose legislative amendments to the European Parliament and the Council.
2023/11/09
Committee: ECON
Amendment 982 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 b – paragraph 1 – point a
(a) Taking into account the size and business model of the insurance intermediary or insurance undertaking and the investment and insurance objectives of the client, to provide such advice on the basis of an assessment of an appropriate range of insurance-based investment products and, where applicable, underlying investment assets; The appropriate range of products or assets can also be met by tied agents, if the advice on an appropriate range of products or assets is ensured through products from one manufacturer. In such a case, clients need to be informed in line with applicable requirements, in particular the information in accordance with Article 29 (1) (a) (ii). If distributors provide advice on one or more products tailored to a particular target market this may also meet the provision to offer an appropriate range of products.
2023/11/09
Committee: ECON
Amendment 989 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 b – paragraph 1 – point b
(b) to recommend the most cost- efficient insurance-based investment product and, 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;or if the equivalent product with higher costs is recommended to justify this with objective reasons and keep records of the justification.
2023/11/09
Committee: ECON
Amendment 997 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 b – paragraph 1 – point c
(c) to recommend, among the range of insurance-based investment products identified as suitable for the customer pursuant to Article 30(1), one or several insurance-based investment products and, where applicable, underlying investment assets, a product or products, without additional features that are not necessary to the achievement of the customer’s objectives and that give rise to extra costs;deleted
2023/11/09
Committee: ECON
Amendment 1008 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 b – paragraph 1 – point d
(d) to recommend an insurance-based investment products which insurance cover is consistent with the customer’s insurance demands and needs in accordance with Article 20(1).
2023/11/09
Committee: ECON
Amendment 1014 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 b – paragraph 2
2. The Commission shall be empowered to supplement this Directive by adopting delegated acts in accordance with Article 38 to further specify how insurance intermediaries and insurance undertakings are to comply with the principles set out in this Article. Those delegated acts shall take into account the nature of the services offered or provided to the customer, the nature of the products being offered or considered, including different types of insurance- based investment products.;
2023/11/09
Committee: ECON
Amendment 1025 #
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point b
Directive (EU) 2016/97
Article 30 – paragraph 1 – subparagraph 1
Without prejudice to Article 20(1), when providing advice on insurance-based investment products, the insurance intermediary or insurance undertaking shall obtain the information regarding the customer’s knowledge and experience in the investment field relevant to the specific type of insurance-based investment product or, where applicable, underlying investment assets, offered or demanded, that customer’s financial situation, including the composition of any existing portfolios, its ability to bear full or partial losses, investment needs and objectives, including any sustainability preferences, and risk tolerance, so as to enable the insurance intermediary or the insurance undertaking to recommend to the customer the insurance-based investment products that are suitable for that person and that, in particular, are in accordance with its risk tolerance, and ability to bear losses and need for portfolio diversification.
2023/11/09
Committee: ECON
Amendment 1040 #
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point b
Directive (EU) 2016/97
Article 30 – paragraph 2 – subparagraph 1
Without prejudice to Article 20(1), Member States shall ensure that, where no advice is given in relation to insurance- based investment products, the insurance intermediary or insurance undertaking shall ask the customer to provide information regarding that person’s knowledge and experience in the investment field relevant to the specific type of insurance-based investment product or, where applicable, underlying investment assets, offered or demanded and the person’s capacity to bear full or partial losses and risk tolerance so as to enable the insurance intermediary or the insurance undertaking to assess whether the insurance-based investment product or products envisaged are appropriate for the customer.
2023/11/09
Committee: ECON
Amendment 1047 #
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point d
Directive (EU) 2016/97
Article 30 – paragraph 5 b – subparagraph 1 – introductory part
5b. Member States shall require that, where an insurance intermediary or insurance undertaking distributing insurance-based investment products informs the customer that advice is given on an independent basis, without this being linked to the distributor's status, the insurance intermediary or insurance undertaking:
2023/11/09
Committee: ECON
Amendment 1049 #
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point d
Directive (EU) 2016/97
Article 30– paragraph 5 b – point a
(a) assesses a sufficiently large number of insurance products available on the market which are sufficiently diversified with regard to their type and product providers to ensure that the customer’s objectives can be suitably met and shall not be limited to insurance products issued or provided by entities having close links with the insurance intermediary or insurance undertaking;to enable it to make a personal recommendation, in accordance with professional criteria, regarding which insurance contract would be adequate to meet the customer’s needs.
2023/11/09
Committee: ECON
Amendment 1052 #
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point d
Directive (EU) 2016/97
Article 30 – paragraph 5 b – point b
(b) not accept and retain fees, commissions or any monetary or non- monetary benefits paid or provided by any third party or a person acting on behalf of a third party in relation to the provision of the service to customers.deleted
2023/11/09
Committee: ECON
Amendment 1053 #
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point d
Directive (EU) 2016/97
Article 30– paragraph 5 b – point b a (new)
(ba) Member States may impose stricter requirements on insurance intermediaries and insurance undertakings in respect of the matters covered by this Article. In particular, Member States may additionally prohibit or further restrict the offer or acceptance of fees, commissions or non-monetary benefits from third parties in relation to the provision of insurance advice. Stricter requirements may include requiring any such fees, commissions or non-monetary benefits to the policyholder or to be used to reduce the premium paid by the customer. The stricter requirements of a Member State referred to in this paragraph shall be complied with by all insurance intermediaries or insurance undertakings, including those operating under the freedom to provide services or the freedom of establishment, when concluding insurance contracts with customers having their habitual residence or establishment in that Member State.
2023/11/09
Committee: ECON
Amendment 1056 #
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point e
Directive (EU) 2016/97
Article 30 – paragraph 6 –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 how insurance intermediaries and insurance undertakings are to comply with the principles set out in this Article when carrying out insurance distribution activities in relation to insurance-based investment products, including with regard to:
2023/11/09
Committee: ECON
Amendment 1057 #
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point e
Directive (EU) 2016/97
Article 30 – paragraph 6 –subparagraph 1 – point c
(c) the content and format of records and agreements for the provision of services to customers and of periodic reports to customers on the services provided.deleted
2023/11/09
Committee: ECON
Amendment 1106 #
Proposal for a directive
Article 5 – paragraph 1 – point 1
[...]deleted
2023/11/09
Committee: ECON
Amendment 1141 #
Proposal for a directive
Article 5 – paragraph 1 – point 2
[...]deleted
2023/11/09
Committee: ECON
Amendment 1143 #
Proposal for a directive
Article 5 – paragraph 1 – point 3
[...]deleted
2023/11/09
Committee: ECON
Amendment 1146 #
Proposal for a directive
Article 5 – paragraph 1 – point 4
[...]deleted
2023/11/09
Committee: ECON
Amendment 1147 #
Proposal for a directive
Article 6 – paragraph 1
1. Member States shall adopt and publish, by … [OP please insert the date = 124 months after the date of entry into force of this Directive] at the latest, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall forthwith communicate to the Commission the text of those provisions.
2023/11/09
Committee: ECON
Amendment 1151 #
Proposal for a directive
Article 6 – paragraph 2
2. They shall apply those provisions from … [OP please insert the date = 18 months after the date of entry into force of this Directiveelegated acts foreseen in this Directive have been published in the Official Journal of the European Union].
2023/11/09
Committee: ECON
Amendment 1156 #
Proposal for a directive
Annex I – point 2 – subpoint 1
Directive 2014/65/EU
Annex II – section II.1 – subparagraph 5
(1) the first, second and third indents are replaced by the following:
2023/11/09
Committee: ECON
Amendment 1158 #
Proposal for a directive
Annex I – paragraph 1 – point 2 – subpoint 1
Directive 2014/65/EU
Annex II – Section II.1 – subparagraph 5 – first indent
(1 a) "the client has carried out transactions, in significant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters.gained experience in a certain asset class within five years and has conducted at least 20 individual transactions in this asset class. "
2023/11/09
Committee: ECON
Amendment 1162 #
Proposal for a directive
Annex I – point 2 – subpoint 1Directive 2014/65/EU

Annex II – section II.1 – subparagraph 5 – second indent
- the size of the client’s financial instrument portfolio, defined as including cash deposits and financial instruments exceeds EUR 25100 000 on average during the last 3 years,’;
2023/11/09
Committee: ECON