The proposal was amended as follows:

Text proposed by the Commission (1)   Amendments by Parliament Amendment 1 Recital 10    (10) This Directive should cover persons whose normal business is to provide third parties with insurance mediation services on a professional basis. Its scope should not therefore cover any person with a different professional activity, such as a tax expert or an accountant, who provides advice on insurance cover on an incidental basis in the course of that other professional activity.    (10) This Directive should cover persons whose normal business is to provide third parties with insurance mediation services on a professional basis. Its scope should not therefore cover any person with a different professional activity, such as a tax expert or an accountant, who provides advice on insurance cover on an incidental basis in the course of that other professional activity. Neither should it include the mere provision of general information on insurance products. Amendment 52 Recital 10 a (new) (10a) Although the protective purpose of the Directive extends to life insurance, accident insurance policies that are also concluded as part of travel insurance, even where they promise benefits in the event of accidental death, should not be covered by the Directive's protective purpose. Amendment 4 Recital 12    (12) Insurance and reinsurance intermediaries should be registered by the competent authority of the Member State where they have their head office, provided that they meet strict professional requirements in relation to their competence, good repute, professional indemnity cover and financial capacity.    (12) Insurance and reinsurance intermediaries should be registered by the competent authority of the Member State where they have their residence or their head office, provided that they meet strict professional requirements in relation to their competence, good repute, professional indemnity cover and financial capacity. Amendment 5 Recital 13 a (new) (13a) Member States are not obliged to maintain a single central register, and may maintain various registers for different categories of intermediaries provided that these registers are readily available for public consultation. Consideration should be given to publishing these registers on the Internet to facilitate cross-border consultation. Amendment 6 Article 1, paragraph 2, introductory part    2. Member States need not apply the provisions of this Directive to persons providing insurance contracts if all the following conditions are met:    2. Member States need not apply the provisions of Chapters I and II to persons providing insurance contracts if all the following conditions are met: Amendment 7 Article 1, paragraph 2, point (a)    (a) the contracts do not require general or specific knowledge of insurance;    (a) the contracts do not require specialist knowledge of insurance; Amendments 8/rev. and 49 Article 1, paragraph 2, point (b)    (b) the contracts are not life insurance contracts;    (b) the contracts are not life insurance contracts; life insurance contracts do not include ancillary cover limited to the duration of a journey or basic cover offered as a matter of routine ; Amendment 9 Article 1, paragraph 2, point (c)    (c) the insurance does not cover any liability risks;    (c) the insurance does not have as a primary objective the coverage of liability risks; Amendment 10 Article 1, paragraph 2, point (d)    (d) the principal professional activity of the person is other than insurance mediation;    (d) the principal professional activity of the person is other than insurance mediation and his income does not predominantly depend on it ; Amendment 11 Article 1, paragraph 2, point (e)    (e) the insurance is ancillary to the good or service supplied, in particular where such insurance covers either the risk of breakdown, loss of or damage to goods supplied by that person or an indemnification of goods linked to the travel booked with that person;    (e) the insurance is ancillary to the good or service supplied, in particular where such insurance covers either the risk of breakdown, loss of or damage to goods supplied by that person or provides cover for different types of risks linked to the travel booked with that person; Amendment 12 Article 1, paragraph 2, point (f)    (f) the amount of the premium does not exceed EUR 1 000 and the duration of the insurance contract is less than a year.    (f) the amount of the premium does not exceed EUR 1 000 and the duration of the insurance contract is less than a year and is not renewable . Amendments 57 and 48 Article 1, paragraph 2 a (new) 2a. Member States need not apply the provisions of this Directive to the following persons:    (a) insurance intermediaries for large risks within the meaning of Article 5(d) of Council Directive 73/239/EEC ( 1 );    (b) one-company insurance intermediaries operating exclusively for the company with which they are associated;    (c) natural or legal persons who, in connection with their principal professional activity, offer as a secondary occupation standardised insurance contracts, for example:    - a security or repayment indemnity for a service to be provided to the customer and where an insurance undertaking or a credit institution assumes unlimited liability for the actions of such persons;    - tourist assistance packages offered by travel agencies as insurance intermediaries;    - animal liability and animal sickness insurance offered by veterinary practitioners. ______________ (1 ) OJ L 228, 16.8.1973, p. 3. Amendment 15 Article 2, point (3)    (3) "insurance mediation" means the activities of introducing, giving information , proposing or carrying out work preparatory to the conclusion of, or in concluding, contracts of insurance, or assisting in the administration and performance of such contracts, in particular in the event of a claim;    (3) "insurance mediation" means the activities of introducing, proposing or carrying out work preparatory to the conclusion of, or in concluding, contracts of insurance, giving information on guarantees or content or assisting in the administration and performance of such contracts, in particular in the event of a claim, by any means, including activities carried out remotely using electronic data processing and storage equipment ; Amendment 16 Article 2, point (4)    (4) "reinsurance mediation" means the activities of introducing, giving information , proposing or carrying out work preparatory to the conclusion of, or in concluding, contracts of reinsurance, or assisting in the administration and performance of such contracts, in particular in the event of a claim;    (4) "reinsurance mediation" means the activities of introducing, proposing or carrying out work preparatory to the conclusion of, or in concluding, contracts of reinsurance, giving information on guarantees or content or assisting in the administration and performance of such contracts, in particular in the event of a claim, by any means, including activities carried out remotely using electronic data processing and storage equipment ; Amendment 17 Article 2, point 6 a (new) (6a) "tied agent" means any person who acts as an insurance intermediary for and on behalf of an insurance undertaking but does not handle premiums or amounts payable to the customer, and who acts entirely under the responsibility of that insurance undertaking, or any person who acts as an insurance intermediary under the responsibility of one or more insurance undertakings in addition to engaging in his principal professional activity - where the insurance concerned is provided in addition to the product or service he provides through his principal professional activity - but who does not handle premiums or amounts payable to the customer; Amendment 19 Article 2, point 6 b (new) (6b) "agent of an insurance intermediary" means any person who assists in the intermediary's work, under the latter's authority and responsibility; Amendment 18 Article 2, point 6 c (new) (6c) "bancassurance distribution" means any insurance mediation activity carried out by any type of financial institution that is not an insurance or reinsurance undertaking, provided that its principal and usual activity is other than insurance distribution, and that its structure includes a network of offices for contact with its customers; Amendment 20 Article 2, point 8, subpoint (a)    (a) where the intermediary is a natural person, the Member State in which his residence is situated and in which he carries on business ;    (a) where the intermediary is a natural person, the Member State in which his residence is situated or in which he carries on his principal professional activity ; Amendment 21 Article 2, point 10    (10) "durable medium" means any instrument which enables the customer to store information addressed personally to him in a manner accessible for future reference for a period of time appropriate to the purposes of the information and which allows the unchanged reproduction of the information stored.    (10) "durable medium" means any instrument which enables the customer to store information addressed personally to him in a manner accessible for future reference for a period of time appropriate to the purposes of the information and which allows the unchanged reproduction of the information stored. This may include floppy discs, CD ROMs, computer hard drives of the customer's computer on which electronic mail is stored and any other appropriate electronic means of storage. Amendment 22 Article 2 a (new) Article 2a Bancassurance distribution Bancassurance distribution, defined in Article 2, which shall be subject to the general principles applicable to insurance intermediaries linked to insurance undertakings set out in this Directive, must, in addition, comply with the following operating principles:    (1) It shall be based on a written agreement between the insurance undertaking and the financial institution, setting out the principles on which their commercial relationship is based, with particular reference to the explicit commitment to the insurance training that persons responsible for carrying out distribution functions directly with clients shall receive from the insurance undertaking.    (2) The insurance undertaking shall be responsible for ensuring compliance with the requirements set out under Article 4, particularly those relating to ability and knowledge appropriate to the duties performed and to the range and features of the products offered.    (3) Financial institutions operating in the field of bancassurance are prohibited without prior written consent of the client from:    - making use of clients' private information, particularly on any insurance contracts they may have for which payments are made through accounts held with the financial institution, for the purpose of making specific offers to them regarding the insurance products they distribute;    - requiring the client of the financial institution to purchase an insurance product distributed by the latter as a condition for purchasing a financial product from its usual range. Evidence of these prohibited practices shall lead to appropriate sanctions. Amendment 23 Article 3, paragraph 1 a (new) 1a. Member States may allow the persons to whom Article 2(6a) applies to be registered by an insurance undertaking or an association of insurance undertakings, under the responsibility of a competent authority. Amendment 24 Article 3, paragraph 2    2. Without prejudice to the third subparagraph of Article 4(1), Member States shall ensure that registration of insurance and reinsurance intermediaries is made subject to the fulfilment of the professional requirements laid down in Article 4.    2. Member States shall adopt the necessary measures to ensure that the competent authority registers the insurance and reinsurance intermediaries who fulfil the professional requirements laid down in Article 4 and that it removes from the register those who subsequently cease for any reason to fulfil them . The validity of registration should be subject to at least three-yearly review by the competent authority. Amendment 25 Article 3, paragraph 2 a (new) 2a. Agents of insurance intermediaries need not be included in the register. Amendment 26 Article 3, paragraph 4    4. Member States shall ensure that there is easy public access to the register or registers referred to in paragraph 1.    4. Member States shall ensure that there is easy public access to the register or registers referred to in paragraph 1. Together with the name of the intermediary, the register shall contain all information relative to his legal and financial links with insurance undertakings. The authority responsible for the register shall make public the list of intermediaries registered in other Member States who have declared their intention to conduct business under the freedom to provide services or the freedom of establishment. Amendment 27 Article 3, paragraph 5    5. Insurance undertakings shall use the insurance and reinsurance mediation services only of registered insurance intermediaries and reinsurance intermediaries and of the persons referred to in Article 1(2).    5. Insurance undertakings, without prejudice to the conduct of business placed outside the EU with unregistered non EU-based intermediaries, shall use the insurance and reinsurance mediation services only of registered insurance intermediaries and reinsurance intermediaries and of the persons referred to in Article 1(2). Amendment 29 Article 4, paragraph 1, subparagraph 3 Member States need not apply the requirement referred to in the first subparagraph to natural persons taking up and pursuing the activity of insurance mediation whose principal professional activity is other than insurance mediation and whose income does not predominantly depend on it. Such a person shall be permitted to mediate only if an insurance intermediary fulfilling the provisions of this Article or an insurance undertaking has taken on full responsibility for his actions and provided him with appropriate and relevant basic training . In the case of tied agents, Member States may allow the insurance undertaking to provide appropriate and relevant basic training pursuant to the second subparagraph . Amendment 30 Article 4, paragraph 2, subparagraph 1    2. Insurance and reinsurance intermediaries shall be of good repute. In particular, they shall have a clean police record or any other national equivalent in relation to insurance and reinsurance business and they shall not have previously been declared bankrupt, unless they have been rehabilitated in accordance with national law.    2. Insurance and reinsurance intermediaries shall be of good repute. In particular, they shall have a clean police record or any other national equivalent in respect of intentional property offences and they shall not have previously been declared bankrupt nor shall judicial insolvency proceedings ever have been opened in respect of their assets , unless they have been rehabilitated in accordance with national law. Amendment 31 Article 4, paragraph 3    3. Insurance and reinsurance intermediaries shall hold professional indemnity insurance or some other comparable guarantee against liability arising from professional negligence, for at least EUR 1 000 000 per claim, unless such insurance or comparable guarantee is already provided by an insurance undertaking, reinsurance undertaking or other undertaking on whose behalf the insurance or reinsurance intermediary is acting or for which the insurance or reinsurance intermediary is empowered to act.    3. Insurance and reinsurance intermediaries shall hold professional indemnity insurance or some other comparable guarantee or safeguard in accordance with national rules against liability arising from professional negligence, for at least EUR 1 000 000 per claim unless such insurance or comparable guarantee is already provided by an insurance undertaking, reinsurance undertaking or other undertaking on whose behalf the insurance or reinsurance intermediary is acting or for which the insurance or reinsurance intermediary is empowered to act. Amendment 56 Article 4, paragraph 4, point (a)    (a) provisions laid down by law whereby monies paid by the customer to the intermediary are treated as having been paid to the undertaking, whereas monies paid by the undertaking to the intermediary are not treated as having been paid to the customer until the customer actually receives them;    (a) provisions laid down by law or by contract whereby monies paid by the customer to the intermediary are treated as having been paid to the undertaking, whereas monies paid by the undertaking to the intermediary are not treated as having been paid to the customer until the customer actually receives them; Amendment 32 Article 4 a (new) Article 4a Grandfathering clause Member States may provide that those persons who, prior to September 2000, were pursuing the activity of mediation, were entered in a register and possessed a similar level of knowledge and ability to that required under this Directive, shall be automatically entered in the register that is created. Amendment 34 Article 5, paragraph 3 a (new) 3a. Any Member State that receives notification of intent to conduct business under the freedom to provide services or the freedom of establishment shall publish this in a list accessible to the public, which shall contain all the information referred to in Article 3. Amendment 54 Article 8 Member States shall ensure the setting-up of a facility allowing customers and other interested parties to register complaints about insurance and reinsurance intermediaries. Member States shall ensure the setting-up of a facility allowing customers and other interested parties to register complaints about insurance and reinsurance intermediaries. In all cases the facility must allow complaints to be presented in a way that is accessible both to consumers and consumer associations, and make available replies to complaints, which may be made public, subject to national rules of client confidentiality and data protection . Amendment 36 Article 9, paragraph 1    1. Member States shall encourage the setting-up of appropriate and effective complaints and redress procedures for the out-of-court settlement of disputes between insurance intermediaries and customers, using existing bodies where appropriate.    1. Member States shall encourage the setting-up of appropriate and effective complaint and redress procedures for the out-of-court settlement of disputes between insurance intermediaries and customers, using existing bodies where appropriate. The provisions on procedures shall take into account the provisions of Commission Recommendation 98/257/EC of 30 March 1998 on the principles applicable to the bodies responsible for out-of-court settlement of consumer disputes( 1 ). _______________ ( 1 ) OJ L 115, 17.4.1998, p. 31. Amendment 37 Article 10, paragraph 1, introductory part    1. Prior to any initial contract, an insurance intermediary shall provide the customer with at least the following information:    1. Prior to conclusion of the contract, an insurance intermediary shall provide the customer with at least the following information: Amendment 38 Article 10, paragraph 1, point (b)    (b) whether he advises the customer on insurance cover from a broad range of insurance undertakings or not. In the latter case, the insurance intermediary shall also inform the customer of the number and identity of the insurance undertakings with which he may and does conduct business for each class of risk;    (b) whether he advises the customer on insurance cover from a broad range of insurance undertakings or not. In the latter case the insurance intermediary shall also, if specifically so requested, inform the customer of the number and identity of the insurance undertakings with which he may and does conduct business for each class of risk; Amendment 55 Article 10, paragraph 1, point (d)    (d) any contractual obligation to conduct the respective business with one or more insurance undertakings as well as the names of those undertakings;    (d) only following a specific verbal or written request by the customer, a clear indication of the extent to which the insurance intermediary is free to provide advice or whether, on account of arrangements and/or agreements with insurance undertakings, he is restricted in providing advice to the customer; in this case, he shall provide the names of those undertakings; Amendment 40 Article 10, paragraph 1, point (e)    (e) the party to be held liable for any negligence, misconduct or inappropriate advice by the intermediary in relation to the insurance mediation;    (e) the natural or legal persons to be held liable for any negligence, misconduct or inappropriate advice by the intermediary in relation to the insurance mediation; Amendments 41 and 60 Article 10, paragraph 2    2. If the insurance intermediary declares that he gives advice on insurance from a broad range of insurance undertakings referred to in point (b) of paragraph 1, he shall at least give advice based on a fair analysis of insurance contracts available on the market that is sufficient to enable him to recommend the insurance contract appropriate to meet the customer's needs.    2. If the insurance intermediary declares that he gives advice on insurance from a broad range of insurance undertakings referred to in point (b) of paragraph 1, he shall at least give advice based on a fair analysis of insurance contracts available on the market that is sufficient to enable him to make a recommendation as to the appropriate insurance contract which is based on the 'best possible advice' principle and meets the needs specified by the customer. Furthermore, the choice of the most suitable product must not be directly influenced by the scale of the commission paid by the undertaking to the intermediary. Amendment 42 Article 10, paragraph 3    3. Prior to the conclusion of any specific contract, insurance intermediaries shall at least specify the demands and the needs of the customer and clarify the underlying reasons for their advice. Deleted Amendment 43 Article 10, paragraph 4    4. The information referred to in paragraphs 1, 2 and 3 need not be given when the insurance intermediary mediates in the insurance of large risks, nor in the case of mediation by reinsurance intermediaries .    4. The information referred to in paragraphs 1 and 2 need not be given when the insurance intermediary mediates in the insurance of large risks, nor in the case of one-company insurance intermediaries when mediating the business for the company with which they are associated . Amendment 44 Article 11, paragraph 2    2. By way of derogation from point (a) of paragraph 1, the information referred to in Article 10 may be provided orally only where immediate cover is necessary or requested by the customer.    2. By way of derogation from point (a) of paragraph 1, the information referred to in Article 10 may be provided orally (which includes all methods of oral communication such as distance selling by telephone or any similar method of communication) only where immediate cover is necessary or requested by the customer, or when the customer specifically requests it . In all cases, the customer shall have the right to request subsequent written confirmation. Amendment 45 Article 11a (new) Article 11 a Equivalent information Member States shall ensure that customers who conclude insurance contracts without the involvement of an insurance intermediary or through the persons referred to in Article 1(2) receive sufficient information on the insurance contract proposed. This information shall enable the customer to determine whether it is appropriate for him to enter into the contract and whether it is suitable for his needs.

(1) OJ C 29 E, 30.1.2001, p.245.

(Codecision procedure: first reading)

The European Parliament,

-  having regard to the Commission proposal to the European Parliament and the Council (COM(2000) 511 (1) ),

-  having regard to Article 251(2) of the EC Treaty and Articles 47(2) and 55 of the Treaty, pursuant to which the Commission submitted the proposal to Parliament (C5-0484/2000 ),

-  having regard to Rule 67 of its Rules of Procedure,

-  having regard to the report of the Committee on Economic and Monetary Affairs and the opinion of the Committee on Legal Affairs and the Internal Market (A5-0359/2001 ),

1.  Approves the Commission proposal as amended;

2.  Asks to be consulted again should the Commission intend to amend the proposal substantially or replace it with another text;

3.  Instructs its President to forward its position to the Council and Commission.

(1) OJ C 29 E, 30.1.2001, p. 245.