BETA

88 Amendments of Sven GIEGOLD related to 2012/0175(COD)

Proposal for a directive
Recital 15

(15) Insurance and reinsurance intermediaries who are natural persons should be registered with the competent authority of the Member State where they have their residence and register with the host Member State to exercise the freedom of establishment; those which are legal persons should be registered with the competent authority of the Member State where they have their registered office (or, if under their national law they have no registered office, their head office), provided that they meet strict professional requirements in relation to their ability, good repute, professional indemnity cover and financial capacity. Insurance intermediaries already registered in Member States shall not be required to register again under this Directive.

2013/02/14
Committee: ECON

Proposal for a directive
Recital 28

(28) There is a need for appropriate and cost effective out-of-court complaint and redress procedures in the Member States in order to settle disputes between insurance intermediaries or undertakings and customers, using, where appropriate, existing procedures. Effective out-of-court complaint and redress procedures should be available to deal with disputes concerning rights and obligations established under this Directive between insurance undertakings or persons selling or offering insurance products and customers. In order to enhance the effectiveness of out-of-court resolution of disputes procedures dealing with complaints submitted by customers, this Directive should provide that insurance undertakings or persons selling or offering insurance products have to participate in dispute resolution procedures~~, which do not result in a binding decision,~~ instituted against themselves by customers and concerning rights and obligations established under this Directive. Such out- of-court resolution of disputes procedures would aim to achieve aconstructive communication, quicker and less expensive settlement of disputes between insurance undertakings or persons selling or offering insurance products and customers and lightening of the burden on the court system. However, out-of-court resolution of disputes procedures should not pre~~judi~~place the rights of the parties to such procedures to bring legal proceedings before courts. Without prejudice to the right of customers to bring their action before the courts, Member States should ensure that ADR entities dealing with disputes referred to under this Directive cooperate in resolving cross-border disputes. Member States should encourage ADR entities dealing with such disputes to become part of FIN- NET.

2013/02/14
Committee: ECON

Proposal for a directive
Recital 29

(29) The expanding range of activities that many insurance intermediaries and undertakings carry on simultaneously has increased potential for conflicts of interest between those different activities and the interests of their customer. It is therefore necessary that Member States to provide ~~for~~ rules to ensure ~~that such conflicts do not adversely affect~~ the interests of the customer are addressed.

2013/02/14
Committee: ECON

Proposal for a directive
Recital 30

(30) Consumers should be provided in advance with clear information about the status of the persons who sell the insurance product and about the remuneration which they receive. There is a need to introduce a mandatory status disclosure for European insurance intermediaries and insurance undertakings. This information should be given to the consumer at the pre- contractual stage. Its role is to show the relationship between the insurance undertaking and the intermediary (where applicable) as well as the structure and the content of the intermediaries' remuneration and how this can affect the total cost of the insurance.

2013/02/14
Committee: ECON

Proposal for a directive
Recital 31

(31) In order to mitigate conflicts of interest between the seller and the buyer of an insurance product, it is necessary to ensure sufficient disclosure of remuneration of insurance distributors. Accordingly, for life insurance products, the intermediary and the employee of the insurance intermediary or the insurance undertaking should be obliged to inform the customer about its remuneration, in advance of the sale. For other insurance products, subject to a transitional period of 5 years, the customer must be informed of the customer's right to request this information, which must be provided to the customer upon request and always upon request, free of charge.

2013/02/14
Committee: ECON

Proposal for a directive
Recital 32

(32) In order to provide a customer ~~with~~to make an informed choice, comparable information on the insurance mediation services have to be provided regardless of whether the customer purchases through an intermediary, or directly from an insurance undertaking, and to avoid the distortion of competition by encouraging insurance undertakings to sell direct to customers rather than via intermediaries in order to avoid information requirements, insurance undertakings should also be required to provide information about remuneration to customers with whom they deal directly in the provision of insurance mediation services about the remuneration they receive for the sale of insurance products.

2013/02/14
Committee: ECON

Proposal for a directive
Recital 37

(37) Prior to the conclusion of a contract, including in the case of non-advised sales, the customer should be given the relevant information about the insurance product to allow the customer to make an informed decision. The insurance intermediary should ~~be able to~~ explain to the customer the key features of the insurance products it sells.

2013/02/14
Committee: ECON

Proposal for a directive
Recital 41

(41) Cross-selling practices are a common strategy for retail financial service providers throughout the Union. They can ~~provide benefits to consumers but can also~~ represent practices where the interest of consumers is not adequately considered. For instance, certain forms of cross-selling practices or products, namely t~~ying practice~~ied products where two or more financial services are sold together in a package and at least one of those services or products is not available separately, can distort competition and negatively affect consumers' mobility and their ability to make informed choices. An example of tying practices can be the necessary opening of current accounts when an insurance service is provided to a consumer in order to pay the premiums or the necessary conclusion of a motor insurance contract when a consumer credit is provided to a consumer in order to insure the financed car. While practices of bundling, where two or more financial services or products are sold together in a package, but each of the services can also be purchased separately, may also distort competition and negatively affect customer mobility and customers' ability to make informed choices, they at least leave choice to the customer and may therefore present less risk to the compliance of insurance intermediaries with their obligations under this directive. The use of such practices should be carefully assessed in order to promote competition and consumer choice.

2013/02/14
Committee: ECON

Proposal for a directive
Recital 51

(51) Technical standards in financial services should ensure ~~consistent~~a minimum level of harmonisation and adequate protection of consumers across the Union. As a body with highly specialised expertise, it would be efficient and appropriate to entrust EIOPA with the elaboration of draft regulatory and implementing technical standards which do not involve policy choices, for submission to the Commission.

2013/02/14
Committee: ECON

Proposal for a directive
Article 1 – paragraph 2 – point f a (new)

(fa) The insurance contract does not cover health insurance risks

2013/02/14
Committee: ECON

Proposal for a directive
Article 1 – paragraph 2 – f b (new)

(fb) the insurance product is a legally obligatory or a fundamentally necessary component for the functioning of the good or service supplied by any provider

2013/02/14
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point 9

9. ‘advice’ means ~~the provision of a recommendation to a customer~~counselling to an actual or potential customer in relation to an insurance product, which is based on a personal recommendation, either upon their request or at the initiative of the insurance undertaking or the insurance intermediary including over the life of the contract;

2013/02/14
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point 10

10. ‘contingent commission’ means a remuneration in the form of a commission where the amount payable is based on the achievement of any kind of agreed targets relating to the ~~business placed~~activities run by the intermediary with that insurer;

2013/02/14
Committee: ECON

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

(18) ‘remuneration’ means any commission, fee, charge or any other payment, including an direct or indirect economic benefit of any kind, offered or given in connection with insurance mediation activities.

2013/02/14
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point 19

(19) ‘tying practice’ means the offering of: - two or more insurance services or products in a package where these insurance services or products are not made available to the consumer separately; or - one or more ancillary services with an insurance service or product in a package where this insurance service or product is not made available to the consumer separately.

2013/02/14
Committee: ECON

Proposal for a directive
Article 3 – paragraph 1 – subparagraph 1

~~Except as provided in Article 4, i~~Insurance and reinsurance intermediaries shall be registered with a competent authority, in their home Member State. Insurance undertakings registered in Member States under Directive 73/239/EEC, Directive 2002/83/EC and Directive 2005/68/EC ~~and their employees~~ shall not be required to register again under this Directive.

2013/02/14
Committee: ECON

Proposal for a directive
Article 3 – paragraph 1 – subparagraph 2

Without prejudice to the first subparagraph, Member States may stipulate that insurance and reinsurance undertakings and other bodies may cooperate with the competent authorities in registering insurance and reinsurance intermediaries and in the application of the requirements of Article 8(2) to such intermediaries. ~~In particular, in the case of~~Nevertheless, tied insurance intermediaries~~, they may~~ shall also be registered ~~by an insurance undertaking by an association of insurance undertakings, or by an insurance or reinsurance intermediary under the supervision of a competent authority~~with a competent authority in their home Member State.

2013/02/14
Committee: ECON

Proposal for a directive
Article 3 – paragraph 1 – subparagraph 4

Member States ~~need not~~shall apply the requirement referred to in the first and second subparagraphs to all the natural persons who work in an insurance or reinsurance undertaking or a registered insurance or reinsurance intermediary and who pursue the activity of insurance or reinsurance mediation.

2013/02/14
Committee: ECON

Proposal for a directive
Article 3 – paragraph 8 a (new)

8a. Member States shall apply the registration requirements in Article 3 to insurance intermediaries, which fall within the scope of article 3(10). In that case Member States shall ensure that the administrative burden stemming from such requirements is proportionate to the nature, scale and complexity of the activity.

2013/02/14
Committee: ECON

Proposal for a directive
Article 3 – paragraph 8 b (new)

8b. The proportionate registration requirements in Article 3(9) shall apply to an insurance intermediary which conducts insurance mediation on an ancillary basis, provided that its activities meet all the following conditions: (a) the principal professional activity of the insurance intermediary is other than insurance mediation; (b) the insurance intermediary only mediates certain insurance products that are complementary to a product or service and clearly identifies them in a register; (c) the insurance products concerned do not cover life assurance, health insurance or liability risks.

2013/02/14
Committee: ECON

Proposal for a directive
Article 3 – paragraph 8 c (new)

8c. The condition of the proportionate registration requirements referred to in Article 3(9) is that the insurance intermediary acts directly or on behalf of or has entered into a specific agreement for the mediation of the insurance products concerned with one or several insurance undertaking(s) or registered insurance intermediaries, each of which accepts responsibility for ensuring compliance by the insurance intermediary with Articles 8(1) and 8(2) and Articles 15 and 16 of this Directive in relation to the products to which the agreement relates.

2013/02/14
Committee: ECON

Proposal for a directive
Article 3 a (new)

Article 3a Registered insurance and reinsurance intermediaries shall be allowed to take up and pursue the activity of insurance and reinsurance mediation in the European Union by means of both freedom of establishment and freedom to provide services.

2013/02/14
Committee: ECON

Proposal for a directive
Article 4

~~[…]~~deleted

2013/02/14
Committee: ECON

Proposal for a directive
Article 4 – paragraph 4

4. Intermediaries who are subject to paragraphs 1 and 2 of this Article shall be subject to the provisions of Chapters I, III, IV, V, VIII, IX ~~and Articles 15 and 16~~ of this Directive.

2013/02/14
Committee: ECON

Proposal for a directive
Article 5 – paragraph 1 – introductory part

1. Any insurance or reinsurance intermediary who intends to carry on ~~busines~~activities within the territory of another Member State for the first time under the freedom to provide services or the freedom of establishment shall communicate the following information to the competent authority of his/her home and the other Member State.

2013/02/14
Committee: ECON

Proposal for a directive
Article 8 – paragraph 8 – introductory part

8. ~~The Commission shall be empowered to adopt delegated acts in accordance with Article 33. Those delegated acts shall~~EIOPA shall develop draft regulatory standards which specify

2013/02/14
Committee: ECON

Proposal for a directive
Article 8 – paragraph 8 – point c a (new)

(ca) the notion of good repute for the purpose of paragraph 2

2013/02/14
Committee: ECON

Proposal for a directive
Article 10 – paragraph 2

2. The authorities referred to in paragraph 1 shall be either public authorities or bodies recognised by national law or by public authorities expressly empowered for that purpose by national law. They shall not be insurance or reinsurance undertakings or associations whose members directly or indirectly include insurance or reinsurance undertakings or insurance or reinsurance intermediaries.

2013/02/14
Committee: ECON

Proposal for a directive
Article 10 – paragraph 3 a (new)

3a. The powers referred to in paragraph 3 shall be exercised in conformity with national law and shall include, at least, the rights to: (a) have access to any document in any form whatsoever which would be relevant for the performance of the supervisory duties and to receive a copy of it; demand information from any person and if necessary to summon and question a person with a view to obtaining information; (c) carry out on-site inspections; (d) carry out mystery shopping; (e) request temporary prohibition of professional activity; (f) require insurance undertakings to provide information; (g) refer matters for criminal prosecution; (h) allow auditors or experts to carry out verifications or investigations.

2013/02/14
Committee: ECON

Proposal for a directive
Article 10 – paragraph 3 b (new)

3b. Competent authorities shall establish a website for the comparison of insurance products. These websites shall provide information on the key features of insurance products and all contract conclusion costs. EIOPA shall develop draft implementing technical standards on the standards for disclosure of insurance product features, contract conclusion costs and product comparison for this website. This website shall be financed independently from contributions of insurance intermediaries and insurance undertakings or related undertakings.

2013/02/14
Committee: ECON

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

~~(a) the procedure results in decisions which are not binding;~~deleted

2013/02/14
Committee: ECON

Proposal for a directive
Article 15 – paragraph 1 a (new)

1a. The Commission shall be empowered to adopt delegated acts in accordance with Article 33. Those delegated acts shall specify the requirement set out in paragraph 1.

2013/02/14
Committee: ECON

Proposal for a directive
Article 15 – paragraph 1 b (new)

1b. Member States shall ensure that where insurance undertakings design insurance and insurance investment products for sale to professional or retail customers, those products are designed to meet the needs of an identified target market within the relevant category of customers.

2013/02/14
Committee: ECON

Proposal for a directive
Article 15 – paragraph 1 c (new)

1c. Member States shall ensure that insurance undertakings take reasonable steps to ensure that each insurance investment product is marketed and distributed to customers within the target group and that sales targets and internal reward schemes or inducements do not provide an incentive for marketing or distribution of the product outside the target group.

2013/02/14
Committee: ECON

Proposal for a directive
Article 15 – paragraph 1 d (new)

1d. Member States shall require investment firms which design insurance investment products or to professional or retail customers to provide information to any third party intermediary on the intended target market for the product.

2013/02/14
Committee: ECON

Proposal for a directive
Article 15 – paragraph 1 e (new)

1e. Member States shall ensure that the manner in which an insurance undertaking remunerates its staff, appointed representatives or other intermediaries does not impede compliance with its obligation to act in the best interests of customers. Member States shall also ensure that where staff advise on, market or sell insurance or insurance investment products to retail customers, the remuneration structures involved do not prejudice their ability to provide an objective recommendation,

2013/02/14
Committee: ECON

Proposal for a directive
Article 15 – paragraph 2 a (new)

2a. Member states shall ensure that insurance undertakings disclose information on the success of customers´ claims. Therefore, these insurance undertakings shall disclose for each type of policy, (1) how many claims made are paid, (2) the average payout per premium and (3) the average time between a claim being made and the payout. Insurance intermediaries shall provide the customer with this information prior to the conclusion of any insurance contract. EIOPA shall develop a draft implementing technical standard on the measurement and disclosure of customers´ claims as referred to in this Article.

2013/02/14
Committee: ECON

Proposal for a directive
Article 15 – paragraph 2 b (new)

2b. intermediaries shall disclose by means of a short standardised notice that they have checked before the conclusion of a insurance contract, whether the customer had already purchased a suitable product for the need originally identified by the intermediary.

2013/02/14
Committee: ECON

Proposal for a directive
Article 16 – paragraph 1 – point a – point v a (new)

(va) whether the insurance intermediary or an insurance undertaking remunerates any personnel or contractual staff, appoints representatives or other insurance intermediaries that this do not impede compliance with the obligation to act in the best interest of the customer.

2013/02/14
Committee: ECON

Proposal for a directive
Article 16 – paragraph 1 – point b a (new)

(ba) intermediaries shall disclose by means of a short standardised notice whether they use an IT-programme to compare available insurance products as well as their characteristics, premiums and the costs involved. If intermediary uses any IT-programme for overview and comparison, this shall also be disclosed by means of a short standardised notice.

2013/02/14
Committee: ECON

Proposal for a directive
Article 17 – paragraph 1 – introductory part

1. Prior to the conclusion of any insurance contract or any insurance package, an insurance intermediary ~~– including tied ones –~~ shall provide the customer with at least the following information:

2013/02/14
Committee: ECON

Proposal for a directive
Article 17 – paragraph 1 – point c – point i

(i) it gives advice on the basis of a ~~fair an~~n assessment of the customers needs, financialy sistuation and the interest of the customer, or

2013/02/14
Committee: ECON

Proposal for a directive
Article 17 – paragraph 1 – point c – point iii

(iii) it is not under a contractual obligation to conduct insurance mediation business exclusively with one or more insurance undertakings and does not give advice on the basis of a ~~fair analysi~~assessment of the customers needs. In that case, it shall provide the names of the insurance undertakings with which it may and does conduct business ;

2013/02/14
Committee: ECON

Proposal for a directive
Article 17 – paragraph 1 – point d

~~(d) the nature of the remuneration received in relation to the insurance contract;~~deleted

2013/02/14
Committee: ECON

Proposal for a directive
Article 17 – paragraph 1 – point e – point iii

~~(iii) on the basis of a combination of both (i) and (ii);~~deleted

2013/02/14
Committee: ECON

Proposal for a directive
Article 17 – paragraph 1 – point e a (new)

(ea) if the intermediary receives remuneration in kind in connection with insurance mediation activities, the nature and the direct and indirect economic value of this remuneration.

2013/02/14
Committee: ECON

Proposal for a directive
Article 17 – paragraph 1 – point f a (new)

(fa) if the intermediary receives remuneration in kind in connection with insurance mediation activities, the nature and the economic value of this remuneration

2013/02/14
Committee: ECON

Proposal for a directive
Article 17 – paragraph 1 – point g

(g) ~~if the amount of the c~~Commission is based on the achievement of any agreed targets or thresholds relating to the business placed by the intermediary with an insurer~~, the targets or thresholds as well as the amounts payable on the achievement of them~~ are banned. If the intermediary is to be remunerated by commission, it shall clearly inform the customer with the amount and the basis for the calculation of such commission.

2013/02/14
Committee: ECON

Proposal for a directive
Article 17 – paragraph 2 – introductory part

2. ~~By derogation from paragraph 1 (f) for five years from the date on which this Directive comes into force, t~~The intermediary of insurance contracts other than contracts in any of the classes specified in Annex I of Directive 2002/83/EC, shall, prior to the conclusion of any such insurance contract, if the intermediary is to be remunerated by a fee or commission,

2013/02/14
Committee: ECON

Proposal for a directive
Article 17 – paragraph 2 – point a

(a) provide the customer with the amount ~~or, where the precise amount is not capable of being given, the basis of calculation of the fee or commission or the combination of both, if the customer so reques~~, this means all actual costs, consisting of contract conclusion costs and operation mediation costs in monetary terms. Where it is not possible to disclose the operating mediation costs in monetary terms, these costs shall be revealed as a percentage of the customer's annual contribution. The customer shall be informed by an annual note of the respective annual costs in monetary terms. EIOPA shall develop draft implementing technical standards on this benchmark on commissions for the different categories of insurance products.

2013/02/14
Committee: ECON

Proposal for a directive
Article 17 – paragraph 4 a (new)

4a. The Commission shall be empowered to adopt delegated acts in accordance with Article 34 concerning measures to ensure that insurance firms comply with the principles set out in this Article when providing insurance mediation or ancillary services to their clients, including the conditions with which the information must comply in order to be fair, clear and not misleading, the details about content and format of information to clients in relation to investment firms and their services, the criteria for the assessment of different issuers and product providers for the provision of insurance advice on an independent basis, the criteria to assess compliance of firms receiving inducements with the obligation to act honestly, fairly and professionally in accordance with the best interest of the client. Those delegated acts shall take into account: (a) the nature of the service(s) offered or provided to the client or potential client, taking into account the type, object, size and frequency of the transactions; (b) the nature of the insurance and insurance investment products being offered or considered; (c) the retail or professional nature of the client or potential clients.

2013/02/14
Committee: ECON

Proposal for a directive
Article 17 – paragraph 4 b (new)

4b. Member States shall ensure that insurance undertakings or intermediaries are not regarded as fulfilling their obligations under Article 24 or of this Article where, in particular, they pay any person except the customer or are paid any fee or commission, or provide or are provided with any non-monetary benefit in connection with the provision of an insurance investment service or ancillary service by any party except the customer, other than where the payment of the fee or commission, or the provision of the non-monetary benefit is designed to enhance the quality of the relevant service to the customer and does not impair compliance with the insurance intermediary or undertaking's duty to act honestly, fairly and professionally in accordance with the best interest of its customers and: (a) is transferred to the investor accompanied by documentation detailing all the services and the fee or commission that is associated with it; (b) enables or is necessary for the provision of insurance investment services, such as custody costs, settlement and exchange fees, regulatory levies or legal fees, and which, by their nature, cannot give rise to conflicts with the insurance intermediary or undertaking's duties to act honestly, fairly and professionally in accordance with the best interests of its customers; or (c) its existence, nature and amount, or, where the amount cannot be ascertained, the method of calculating that amount, must be clearly disclosed to the customer, in a manner that is comprehensive, prior to the provision of the relevant service; Notwithstanding Member States provide that the requirements of this paragraph are only satisfied where the value of the fee, commission or non-monetary benefit is transferred to the client.

2013/02/14
Committee: ECON

Proposal for a directive
Article 17 – paragraph 4 c (new)

4c. Insurance undertakings shall offer their products to insurance intermediaries for the net price, this means as net quoted insurance policies. These net quoted insurance products shall not contain any mediation costs.

2013/02/14
Committee: ECON

Proposal for a directive
Article 18 – paragraph 1 – introductory part

1. Prior to the conclusion of any specific contract, the insurance intermediary – including tied ones– or insurance undertaking shall indentify, on the basis of ~~information provided by the customer~~an assessment of the customers best interest:

2013/02/14
Committee: ECON

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

(b) and shall specify to the customer the different insurance policies he/she has evaluated and the underlying reasons for any advice to the customer on a specified insurance product, if given.

2013/02/14
Committee: ECON

Proposal for a directive
Article 18 – paragraph 2

2. The details referred to in points (a) and (b) of paragraph 1 shall be modulated according to the complexity of the insurance product being proposed and the level of financial risk to the customer specifying what the suggested insurance product does not cover.

2013/02/14
Committee: ECON

Proposal for a directive
Article 18 – paragraph 4

4. Prior to the conclusion of a contract, whether or not advice is given, the insurance intermediary or insurance undertaking shall give the customer the relevant information about the insurance product in a comprehensible form to allow the customer to make an informed decision, while taking into account the complexity of the insurance product and the type of costumer. It may be provided by means of a standardised form adopted at the national level under control of the competent authorities.

2013/02/14
Committee: ECON

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

(b) in a clear and accurate manner, comprehensible to the customer; and in compliant with paragraph 2 of Article 15

2013/02/14
Committee: ECON

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

(c) in anthe official languages of the Member State ~~in which the risk is situated or the Member State of the commitment or in any o~~were the consumer is resident. Member States may maintain or introduce in their ~~language agree~~national law language requirements regarding the contractual information, so as to ensure that such information is easily understood by the ~~parties~~consumer. It shall be provided free of charge.

2013/02/14
Committee: ECON

Proposal for a directive
Article 20 – paragraph 1 – point c a (new)

(ca) the insurance undertaking shall provide insurance intermediaries and clients a standardised information sheet containing the key features of the insurance contract.

2013/02/14
Committee: ECON

Proposal for a directive
Article 21 – paragraph 1

~~1. Member States shall allow bundling practices but not tying practices.~~deleted

2013/02/14
Committee: ECON

Proposal for a directive
Article 21 – paragraph 3

3. EIOPA shall develop, by 31 December [20XX] at the latest, and update periodically, guidelines for the assessment and the supervision of cross-selling practices indicating, in particular, situations in which cross-selling practices are not compliant with obligations set out in Articles 16, 17 and 18 or paragraph 1 of this Article.deleted

2013/02/14
Committee: ECON

Proposal for a directive
Article 23 – paragraph 1 – subparagraph 1a (new)

Commission shall be empowered to adopt delegated acts in accordance with Article 23 laying down detailed rules for: – the steps that might reasonably be expected to be taken to identify, prevent, manage and disclose conflicts of interest; – appropriate criteria for determining the types of conflict of interest whose existence may damage the interest of the customer.

2013/02/14
Committee: ECON

Proposal for a directive
Article 23 – paragraph 2

2. ~~Where steps taken by the~~An insurance intermediary or insurance undertaking ~~in compliance with Articles 15, 16 and 17~~shall maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps designed to prevent conflicts of interest from adversely affecting the interests of its customers. Where steps taken by the insurance intermediary or insurance undertaking are not sufficient to ensure, with reasonable confidence, that risks of damage to the interests of customers and potential customers arising from conflicts of interest will be prevented, the insurance intermediary or insurance undertaking shall clearly disclose the general nature or sources of conflicts of interest to the customer before undertaking business on the customer's behalf.

2013/02/14
Committee: ECON

Proposal for a directive
Article 23 – paragraph 2 a (new)

2a. The disclosure must: (a) be made in a durable medium; (b) include sufficient detail, taking into account the nature of the customer, to enable that customer to take an informed decision with respect to the service in the context of which the conflict of interest arises.

2013/02/14
Committee: ECON

Proposal for a directive
Article 24 – paragraph 1

1. Member States shall require that, when carrying out insurance mediation with or for customers, an insurance intermediary or insurance undertaking have an obligation to acts honestly, fairly and professionally in accordance with the best interests of its customers and complies, in particular, with the principles set out in this Article and in Article 25.

2013/02/14
Committee: ECON

Proposal for a directive
Article 24 – paragraph 1 a (new)

1a. The implementation of the information requirements contained in Articles 24 and 25 should be proportionate, taking into account whether or not the customer is a professional customer as specified in the Annex.

2013/02/14
Committee: ECON

Proposal for a directive
Article 24 – paragraph 3 – point a

(a) the insurance intermediary or insurance undertaking and its services. When advice is provided, information shall specify whether the advice is provided on an independent basis and whether it is based on a broad or on a more restricted analysis of the market and shall indicate different types of instruments; whether the insurance intermediary or insurance undertaking will provide the customer with the ~~on-going~~periodic assessment of the suitability of the insurance product recommended to the customer;

2013/02/14
Committee: ECON

Proposal for a directive
Article 24 – paragraph 3 – point c

(c) all costs and any associated charges.

2013/02/14
Committee: ECON

Proposal for a directive
Article 24 – paragraph 5 – point a

(a) assess a ~~sufficiently large number~~range of insurance products available on the market. The insurance products should be diversified with regard to their type and issuers or product providers and should not be limited to insurance products issued or provided by entities having close links with the insurance intermediary or insurance undertaking; and

2013/02/14
Committee: ECON

Proposal for a directive
Article 24 – paragraph 5 – point b

(b) when the insurance intermediary or insurance undertaking informs the customer that the insurance advice is provided on an independent basis, the insurance intermediary or insurance undertaking shall not accept or receive fees, commissions or any direct or indirect 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.

2013/02/14
Committee: ECON

Proposal for a directive
Article 24 – paragraph 5 – point b

(b) not accept ~~or receive~~and retain fees, commissions or any 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.

2013/02/14
Committee: ECON

Proposal for a directive
Article 24 – paragraph 6 – point b a (new)

(ba) the retail or professional nature of the customer or potential customer; and their classification as eligible counterparts

2013/02/14
Committee: ECON

Proposal for a directive
Article 25 – paragraph 1

1. When providing advice the insurance intermediary or insurance undertaking shall obtain the necessary information regarding the customer's or potential customer's knowledge, needs and experience in the field relevant to the specific type of product or service, as well as regarding the customer's or potential customer's financial situation and his investment objectives, on the basis of ~~which~~the assessment the insurance intermediary or insurance undertaking should recommend the insurance products that are ~~suitable for~~in the interest of the customer or potential customer.

2013/02/14
Committee: ECON

Proposal for a directive
Article 25 – paragraph 2 – subparagraph 1

Member States shall ensure that insurance intermediaries and insurance undertakings, when carrying on insurance mediation in relation to sales where no advice is given, asks the customer or potential customer ~~to provide~~s for relevant information regarding the customer's or potential customer's ~~knowledge and experience in the investment field relevant to the specific type of product or service offered or demanded so a~~. This to enable the insurance intermediary or insurance undertaking to assess whether the insurance service or product envisaged is appropriate for the customer.

2013/02/14
Committee: ECON

Proposal for a directive
Article 25 – paragraph 2 – subparagraph 2

Where the insurance intermediary or insurance undertaking considers, on the basis of the information ~~receiv~~asked under the previous subparagraph, that the product or service is not appropriate to the customer or potential customer, the insurance intermediary or insurance undertaking shall warn the customer or potential customer. This warning may be provided in a standardised format.

2013/02/14
Committee: ECON

Proposal for a directive
Article 25 – paragraph 2 – subparagraph 3

Where customers or potential customers docan not provide the information referred to in the first subparagraph, or where they can not provide insufficient information ~~regarding their knowledge and experience~~, the insurance intermediary or insurance undertaking shall ~~warn them that~~not advice or sell the service or product envisaged, whereas the insurance intermediary or insurance undertaking is not in a position to determine whether the service or product ~~envisaged~~ is appropriate ~~for them. This warning~~. This may be provided in a standardised format with instruction of information needed for the insurance intermediary or insurance undertaking to make an appropriate assessment in the customers best interest.

2013/02/14
Committee: ECON

Proposal for a directive
Article 25 – paragraph 2 – subparagraph 3 a (new)

Member States shall allow insurance intermediaries and insurance undertakings, when carrying on insurance mediation in relation to sales where no advice is given, to proceed without obtaining the information or make the determination provided for in paragraph 2, if the following conditions are met: (a) the insurance mediation activity is performed at the initiative of the customer or potential customer, (b) the insurance mediation activity refers to insurance-based investments which: (i) only provide investment exposure to underlying financial instruments deemed non-complex as set out under Article 25(3)(a) of [Directive 2004/39/EC]; or (ii) do not incorporate a structure which makes it difficult for the customer to understand the risk involved. (c) the customer or potential customer has been clearly informed that the insurance intermediary or insurance undertaking is not required to assess the suitability or appropriateness of the product offered and that therefore he does not benefit from relevant conduct of business rules. This warning may be provided in a standardised format.

2013/02/14
Committee: ECON

Proposal for a directive
Article 26 – paragraph 2 a (new)

2a. Member States shall ensure that the competent authorities have in place appropriate measures enabling them to encompass and disclose by means of a register identity of insurance, tied- insurance and reinsurance intermediaries who breached Chapter VI and VII of this Directive as well the identity of the intermediate or insurance undertaking, the respective intermediate is acting for. EIOPA shall provide a list of hyperlinks to each register of the relevant competent national authorities. Likewise, competent national authorities shall provide hyperlinks to the aforementioned list kept by EIOPA.

2013/02/14
Committee: ECON

Proposal for a directive
Article 26 a (new)

Article 26a Specific Sanctions In accordance with Article 9(2) of Regulation (EU) No 1095/2010, EIOPA shall monitor the insurance and reinsurance products which are marketed, distributed or sold in the Union and may proactively investigate new insurance and reinsurance products or financial instruments before they are marketed, distributed or sold in the Union in cooperation with the competent authorities. EIOPA shall also monitor the other financial activities and practices, including investment activities, of the insurance and reinsurance undertakings. 1. In accordance with Article 9(5) of Regulation (EU) No 1095/2010, EIOPA may, where it is satisfied on reasonable grounds that the conditions in paragraphs 2 and 3 are fulfilled, temporarily prohibit or restrict in the Union: (a) the marketing, distribution or sale of certain specified insurance and reinsurance products, including health insurance and insurance investment products with certain specified features; or (b) a type of financial activity or practice, including investment activity, of insurance or reinsurance undertakings. A prohibition or restriction may apply in circumstances, or be subject to exceptions, specified by EIOPA. 2. EIOPA shall only take a decision under paragraph 1 if all of the following conditions are fulfilled: (a) the proposed action addresses a significant threat to the protection of policy holders or beneficiaries or to the orderly functioning and integrity of financial markets or to the stability of the whole or part of the financial system in the Union; (b) regulatory requirements under Union legislation that are applicable to the relevant insurance or reinsurance product, financial instrument or activity do not address the threat; (c) a competent authority or competent authorities have not taken action to address the threat or actions that have been taken do not adequately address the threat. Where the conditions set out in the first subparagraph are fulfilled, EIOPA may impose the prohibition or restriction referred to in paragraph 1 on a precautionary basis before an insurance or reinsurance product has been marketed or sold to policy holders or a financial activity or practice is carried out. 3. When taking action under this Article EIOPA shall take into account the extent to which the action: (a) does not have a detrimental effect on the efficiency of financial markets or on policyholders and beneficiaries that is disproportionate to the benefits of the action; and (b) does not create a risk of regulatory arbitrage. Where a competent authority or competent authorities have taken a measure under Article 32, EIOPA may take any of the measures referred to in paragraph 1 without issuing the opinion provided for in Article 33. 4. Before deciding to take any action under this Article, EIOPA shall notify competent authorities of the action it proposes. 4a. Before taking a decision under paragraph 1, EIOPA shall give notice of its intention to prohibit or restrict an insurance or reinsurance product or a financial activity or practice unless certain changes are made to features of the insurance or reinsurance product or financial activity or practice within a specified timescale. 5. EIOPA shall publish on its website notice of any decision to take any action under this Article. The notice shall specify details of the prohibition or restriction and specify a time after the publication of the notice from which the measures will take effect. A prohibition or restriction shall only apply to action taken after the measures take effect. 6. EIOPA shall review a prohibition or restriction imposed under paragraph 1 at appropriate intervals and at least every twelve months. If the prohibition or restriction is not renewed after that twelve-month period it shall expire. 7. Action adopted by EIOPA under this Article shall prevail over any previous action taken by a competent authority. 8. The Commission shall adopt delegated acts in accordance with Article 41 specifying criteria and factors to be taken into account by EIOPA in determining when the threats to investor protection or to the orderly functioning and integrity of financial markets and to the stability of the whole or part of the financial system of the Union referred to in paragraph 2(a) arise. Those delegated acts shall ensure that EIOPA is able to act, where appropriate, on a precautionary basis and shall not be required to wait until the product has been marketed or the type of activity or practice has been undertaken before taking action.

2013/02/14
Committee: ECON

Proposal for a directive
Article 28 – paragraph 2 – subparagraph 1 – point c

(c) in case of an insurance or reinsurance intermediary, withdrawal of ~~registr~~authorisation in accordance with Article 3;

2013/02/14
Committee: ECON

Proposal for a directive
Article 28 – paragraph 2 – subparagraph 1 – point d

(d) a ban against any member of the management body of the insurance or reinsurance intermediary or insurance or reinsurance undertaking or any other natural person, who is held responsible, to further exercise functions in insurance intermediaries or reinsurance intermediaries, or insurance or reinsurance undertakings;

2013/02/14
Committee: ECON

Proposal for a directive
Article 29 – paragraph 1 – point c

(c) the financial strength of the responsible natural or legal ~~person, as indicated by the total turnover of the responsible legal person or the annual income of the responsible natural~~ person;

2013/02/14
Committee: ECON

Proposal for a directive
Article 30 – paragraph 1

1. Member States shall ensure that the competent authorities establish effective mechanisms to encourage reporting of breaches of ~~national~~ provisions implementing this Directive to the competent authorities.

2013/02/14
Committee: ECON

Proposal for a directive
Article 30 – paragraph 2 – point b

(b) appropriate protection for employees ~~of insurance or reinsurance undertakings or intermediaries~~ who denounce breaches committed within them; and

2013/02/14
Committee: ECON

Proposal for a directive
Article 34 – paragraph 5

5. A delegated act adopted pursuant to Articles 8, 17, 23, 24 and 25 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of 23 months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by 23 months at the initiative of the European Parliament or the Council. When a delegated act is delivered just before or during a holiday, the time shall be deemed to run from the date of the first plenary following the holiday. In all instances, including extension, the time period shall be extendible to encompass three full plenary sessions.

2013/02/14
Committee: ECON

Proposal for a directive
Article 35 – paragraph 1

1. ~~Fiv~~Three years after the entry into force of the provisions on mandatory disclosure as laid down in Articles 15 to 20 as well as 24 and 25 of this Directive, the Commission shall review this Directive. The review shall include a general survey of the practical application of rules laid down in this Directive taking due account of developments in the retail investment products markets as well as experiences acquired in practical application of this Directive and Regulation on key information documents for investment products and [MIFID II]. The review shall reflect on a possible application of the provisions of this Directive to products falling under the scope of Directive 2003/41/EC. This review shall also include a specific analysis of the impact of Article 17(2), taking into account the situation of competition on the market of intermediation services for contracts other than contracts in any of the classes specified in Annex I of Directive 2002/83/EC and the impact of the obligations referred to in Article 17(2) on insurance intermediaries which are small and medium sized enterprises.

2013/02/14
Committee: ECON

Proposal for a directive
Article 35 – paragraph 1 a (new)

1a. One year after this directive has come into effect EIOPA shall carry out an assessment of the different insurance markets of the EU member states. This analysis shall assess and compare (1) the relation between insurance coverage of consumers and actual payouts to reveal in how far consumers are protected against major risks by the products of insurance undertakings, (2) intermediary costs consumers of the different member states´ insurance markets have to bear. EIOPA shall publish the methodology and findings of this assessment as a report.

2013/02/14
Committee: ECON