BETA

Activities of Denis NESCI related to 2023/0167(COD)

Shadow reports (1)

2024/04/02
Committee: ECON
Dossiers: 2023/0167(COD)
Documents: PDF(523 KB) DOC(205 KB)
Authors: [{'name': 'Stéphanie YON-COURTIN', 'mepid': 197581}]

Amendments (56)

Proposal for a directive
Recital 13

(13) To make the pricing process more objective and to equip manufacturers, distributors and competent authorities with a tool allowing for an efficient comparison of costs among investment products from the same product type, both ESMA and EIOPA should develop benchmarks, based on data related to the cost and performance of investment products, which should be taken into consideration by manufacturers and distributors in their pricing processes. If the result of the comparison with a relevant benchmark indicates that the costs and performance for investors are not aligned to the benchmark, the product should not be marketed to retail investors, unless additional testing and further assessments have established that the product nevertheless offers Value for Money to the target market, for example in the case of a product containing additional special features that would be considered relevant for a particular group of investors with identified specific needs and objectives, but which are not reflected in the description of the group of investment products for which the benchmark was developed.deleted

2023/11/09
Committee: ECON

Proposal for a directive
Recital 15

(15) To enable ESMA and EIOPA to develop reliable benchmarks, based on reliable data, manufacturers and distributors of investment products should be required to report necessary data to competent authorities, for onward transmission to ESMA and EIOPA. To limit, to the greatest extent possible, costs related to the new reporting obligations and to avoid unnecessary duplication, data sets should as far as possible be based on disclosure and reporting obligations stemming from EU law. ESMA and EIOPA should develop regulatory technical standards to determine the data sets, data standards and methods and formats for the information to be reported.deleted

2023/11/09
Committee: ECON

Proposal for a directive
Recital 17

(17) In view of the extent of diversity of retail investment product offerings, the development of benchmarks by ESMA and EIOPA should be an evolutionary process, beginning with the investment products most commonly purchased by retail investors and progressively building on the experience gathered over time in order to broaden coverage and refine their quality.deleted

2023/11/09
Committee: ECON

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

Proposal for a directive
Recital 34

(34) To ensure that, in the context of advised services, due consideration is given to portfolio diversification, financial advisors should be systematically required to consider the needs of such diversification for their clients or customers, as part of the suitability assessments, including on the basis of information provided by those clients or customers on their existing portfolio of financial ~~and non-financial~~ assets.

2023/11/09
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 3 a (new)

Directive 2014/65/EU
Article 4 – paragraph 1 – point 48 a (new)

(3a) ‘existing financial assets’ mean financial instruments, structured deposits, insurance-based investment products and the practice of portfolio management;

2023/11/09
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 9

Directive 2014/65/EU
Article 16–a – paragraph 1 – point e

(e) in relation to financial instruments falling under the definition of packaged retail investment products in accordance with Article 4(1) of Regulation (EU) No 1286/2014 of the European Parliament and of the Council*, a clear identification and quantification of all costs and charges related to the financial instrument and an assessment of whether those costs and charges are justified and proportionate, having regard to the characteristics, objectives and, if relevant, strategy of the financial instrument, ~~and~~ its performance and the quality and level of service provided to the customer by distributors (‘pricing process’).

2023/11/09
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 9

Directive 2014/65/EU
Article 16–a – paragraph 1 – subparagraph 3

~~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 paragraph 9.~~deleted

2023/11/09
Committee: ECON

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

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

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

Proposal for a directive
Article 1 – paragraph 1 – point 9

Directive 2014/65/EU
Article 16–a – paragraph 5 – 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 shall report to its home competent authorities details of the costs of distribution, including any costs related to the provision of advice ~~or any connected third-party payments~~.

2023/11/09
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 9

6. 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) financial instrument, in particular its performance and the level of risk. The competent authorities shall transmit such data without undue delay to ESMA.deleted details of costs and charges of any data on the characteristics of the

2023/11/09
Committee: ECON

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

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

Proposal for a directive
Article 1 – paragraph 1 – point 9

Directive 2014/65/EU
Article 16–a – paragraph 9

9. After having consulted EIOPA and the competent authorities, ESMA shall, where appropriate, develop and make publicly available common benchmarks for financial instruments that present similar levels of performance, risk, strategy, objectives, or other characteristics, to help investment firms to perform the comparative assessment of the cost and performance of financial instruments, falling under the definition of packaged retail investment products, both at the manufacturing and distribution stages. The benchmarks shall display a range of costs and performance, in order to facilitate identification of financial instruments whose costs and performance depart significantly from the average. The costs used for the development of benchmarks for investment firms manufacturing financial instruments shall, in addition to the total product cost, allow comparison to individual cost components. The costs used for the development of benchmarks for distributors shall, in addition to the total cost of the product, refer to the distribution cost. ESMA shall regularly update the benchmarks.deleted

2023/11/09
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 9

Directive 2014/65/EU
Article 16–a – paragraph 11

11. The Commission is empowered to supplement this Directive by adopting delegated acts in accordance with Article 89 to specify the following: (a) develop benchmarks referred to in paragraph 9; (b) costs and charges are justified and proportionate;deleted the methodology used by ESMA to the criteria to determine whether

2023/11/09
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 9

Directive 2014/65/EU
Article 16–a – paragraph 12 – subparagraph 1 – introductory part

ESMA, after having consulted EIOPA and the competent authorities ~~and taking into consideration the methodology referred to in paragraph 11, point (a)~~, shall develop draft regulatory technical standards specifying the following:

2023/11/09
Committee: ECON

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 65, based on disclosure and reporting obligations, unless additional data is exceptionally necessary;

2023/11/09
Committee: ECON

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 with paragraph 2~~, 5~~ and 65.

2023/11/09
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 9

Directive 2014/65/EU
Article 16–a – paragraph 12 – subparagraph 2

ESMA shall submit those draft regulatory technical standards to the Commission by [18 months] after ~~adoption of the delegated act referred to in paragraph 11~~the date of entry into force of this Directive.

2023/11/09
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b

Directive 2014/65/EU
Article 24 – paragraph 1 a – point a

(a) to provide advice on the basis of an assessment of an appropriate range of financial instruments;, taking into account customers’ needs and objectives:

2023/11/09
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 12 – 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;

2023/11/09
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 13

Directive 2014/65/EU
Article 24a – paragraph 8

8. Three years after the date of entry into force of Directive (EU) [OP Please introduce the number of the amending Directive] 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.deleted

2023/11/09
Committee: ECON

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 managemThe requirements laid down in this paragraph shall not apply to services provided to professional clients a~~re provided or when, irrespective of the~~nd eligible counterparties, except for investment ~~ser~~advice ~~provided, the financial instruments concerned embed a derivative~~and portfolio management.

2023/11/09
Committee: ECON

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

Proposal for a directive
Article 1 – paragraph 1 – point 13

Directive 2014/65/EU
Article 24c – paragraph 2 – subparagraph 2

~~All m~~Marketing communications shall present in a prominent and concise way, the essential characteristics of the financial instruments or the investment services and related ancillary services to which they refer, taking into account the nature and characteristics of the media used.

2023/11/09
Committee: ECON

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 included 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, taking into account the nature and characteristics of the media used.

2023/11/09
Committee: ECON

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 disclosed in all marketing communications targeting retail clients or potential retail clients and any other relevant criteria to ensure that those essential characteristics appear in a prominent way and are easily accessible by an average retail client, ~~regardless of the means of communication~~taking into account the nature and characteristics of the media used;

2023/11/09
Committee: ECON

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, ~~including the composition of any existing portfolios~~financial activities belonging to the same portfolio for which the investment firm is carrying out the assessment of suitability in accordance with the agreement made with the client, 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.

2023/11/09
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 – point 16

Directive 2014/65/EU
Article 35 a – paragraph 1 – subparagraph 1 – introductory part

Member States shall require that investment firms and credit institutions providing investment services or activities report the following information annually to the competent authority of its home Member State when they provide investment services to more than 150 retail clients on a cross-border basis:

2023/11/09
Committee: ECON

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 proportionate, 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, and any other related service (pricing process);

2023/11/09
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point 16

Directive (EU) 2016/97
Article 25 – paragraph 1 – subparagraph 3

~~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 with paragraph 8.~~deleted

2023/11/09
Committee: ECON

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

Proposal for a directive
Article 2 – paragraph 1 – point 16

Directive (EU) 2016/97
Article 25 – paragraph 5 – subparagraph 3

~~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 with paragraph 8.~~deleted

2023/11/09
Committee: ECON

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

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 benchmarks 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.deleted

2023/11/09
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point 16

Directive (EU) 2016/97
Article 25 – paragraph 8 – subparagraph 2

The benchmarks shall display a range of costs and performance, in order to facilitate the identification of insurance- based investment products whose costs and performance depart significantly from the average.deleted

2023/11/09
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point 16

Directive (EU) 2016/97
Article 25 – paragraph 8 – subparagraph 2

The benchmark indicators shall display a range of costs ~~and~~, performance and main insurance characteristics, in order to facilitate the identification of insurance- based investment products whose costs ~~and~~, performance and main insurance characteristics depart significantly from the average.

2023/11/09
Committee: ECON

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 benchmark~~s shall, in addition to the total product cost,~~ indicators shall also include all costs of distribution, inclusive inducements~~. They shall~~, and allow comparison with individual cost components.

2023/11/09
Committee: ECON

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 benchmarks.~~deleted

2023/11/09
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point 16

Directive (EU) 2016/97
Article 25 – paragraph 9

~~9. The Commission shall be empowered to supplement this Directive by adopting~~ delegated acts in accordance with Article 38 to further specify the principles set out in this Article, including, with regard to insurance-based investment products, (a) the methodology to be used by EIOPA to develop the benchmarks referred to in paragraph 8; (b) the criteria to determine whether costs and charges are justified and proportionate; Those delegated acts shall take into account in a proportionate way the activities performed, the nature of the insurance products sold and the nature of the distributor.

2023/11/09
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point 18

Directive (EU) 2016/97
Article 26 a – paragraph 7 – subparagraph 2

Such records shall be kept for a period of ~~five years and, where requested by the competent authority, for a period of up to se~~maximum fiven years. Those records shall be retrievable by the insurance undertaking or insurance distributor upon request by the competent authority.

2023/11/09
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point 20

Without prejudice to Article 18 and Article 19(1) and (2), Member States shall ensure that insurance intermediaries and insurance undertakings distributing insurance-based investment products provide customers in good time before the customers are bound by an insurance contract or offer, with appropriate information ~~in personalised form~~ about the insurance-based investment products proposed to those customers. That information shall contain all of the following:

2023/11/09
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point 20

Directive (EU) 2016/97
Article 29 – paragraph 1 – point a – subpoint v

(v) how the recommended insurance- based investment products take into account the diversification of the customer’s portfolio; where the customer has provided the relevant information;

2023/11/09
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point 20

Directive (EU) 2016/97
Article 29 – paragraph 3 – point f

(f) adjusted individual projections of the expected outcome at the end of the contractual or recommended holding period, based on the current value of the investment and its performance development so far and linked to the pre- contractual performance scenarios in the key information document provided for in Regulation No 1286/2014, and a disclaimer that those projections may differ from the actual final value of the investment;deleted

2023/11/09
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point 21

Directive 2016/97/EU
Article 29 a – paragraph 6

6. ~~Thre~~Five years after the date of entry into force of Directive (EU) [OP Please introduce the number of the amending Directive] 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 provisionoverall effects 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

Proposal for a directive
Article 2 – paragraph 1 – point 21

Directive (EU) 2016/97
Article 29 b – paragraph 1 – point a

(a) to provide such advice on the basis of an assessment of an appropriate range of insurance-based investment products and, where applicable, underlying investment ~~asset~~options;

2023/11/09
Committee: ECON

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;~~ options identified as appropriate pursuant to Article 30(1) and offering similar features among insurance investment products that meet the customer’s requirements and needs, including with regard to costs and services offered;

2023/11/09
Committee: ECON

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 ~~asset~~options, offered or demanded that customer’s financial situation~~, including~~ and, if provided by the customer, 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, ability to bear losses and, where the customer has provided the relevant information, need for portfolio diversification.

2023/11/09
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point 22 – point b

Directive (EU) 2016/97
Article 30 – paragraph 1 – subparagraph 2

When providing advice on an independent basis to retail customers restricted to well- diversified, non-complex, and ~~cost-~~ efficient insurance-based investment products, the insurance intermediary or insurance undertaking shall be under no obligation to obtain information on the customer’s knowledge and experience about the considered insurance-based investment products or on the customer’s portfolio composition.

2023/11/09
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point 22 – point b

Directive (EU) 2016/97
Article 30 – paragraph 1 – subparagraph 3

When providing advice that involves switching between underlying investment ~~asset~~options, insurance intermediaries and insurance undertakings shall obtain the necessary information on the customer’s existing underlying investment ~~asset~~options and the recommended new investment ~~asset~~options and shall analyse the expected costs and benefits of the switch, so that they are reasonably able to demonstrate that the benefits of switching are expected to be greater than the costs.

2023/11/09
Committee: ECON

Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a

Directive 2009/65/EC
Article 14 – paragraph 1 e – subparagraph 1

Member States shall require management companies to assess at least annually the conditions mentioned in paragraph 1b, point (b). The assessment shall take into account the criteria set out in the pricing process ~~and include a comparison with the relevant benchmark on costs and performance published by ESMA in accordance with paragraph 1f~~.

2023/11/09
Committee: ECON

Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a

Directive 2009/65/EC
Article 14 – paragraph 1 f

1f. After consulting EIOPA and competent authorities, ESMA shall, where appropriate, develop and make publicly available benchmarks to enable the comparative assessment of costs and performance of UCITS, or their share classes where they have different cost structures, to be used for the assessment set out in paragraph 1e. Common benchmarks shall be developed, where it is feasible to do so, for UCITS, or their share classes where they have different cost structures, marketed to retail investors that present similar levels of performance, risk, strategy, objectives, or other characteristics. These benchmarks shall display a range of costs and performance, especially cases where costs and performance depart significantly from the average. The benchmarks shall be updated on a regular basis.’;deleted

2023/11/09
Committee: ECON

Proposal for a directive
Article 4 – paragraph 1 – point 1 – point b – point iii

Directive 2009/65/EC
Article 14 – paragraph 2 – point e

(e) provide for criteria to determine whether costs are justified and proportionate in accordance with paragraph 1b, point (b) and for taking corrective measures mentioned in paragraph 1e and specify the methodology used by ESMA to develop its benchmarks.’;deleted

2023/11/09
Committee: ECON

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 Directive]~~18 months after the publication of all Level 2 and Level 3 measures.

2023/11/09
Committee: ECON