Procedure : 2012/0175(COD)
Document stages in plenary
Document selected : A7-0085/2014

Texts tabled :

A7-0085/2014

Debates :

PV 25/02/2014 - 14
CRE 25/02/2014 - 14

Votes :

PV 26/02/2014 - 9.8
CRE 26/02/2014 - 9.8

Texts adopted :

P7_TA(2014)0155

REPORT     ***I
PDF 852kWORD 648k
5 February 2014
PE 502.060v02-00 A7-0085/2014

on the proposal for a directive of the European Parliament and of the Council on the insurance mediation (recast)

(COM(2012)0360 – C7-0180/2012 – 2012/0175(COD))

Committee on Economic and Monetary Affairs

Rapporteur: Werner Langen

(Recast – Rule 87 of the Rules of Procedure)

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
 ANNEX: LETTER FROM THE COMMITTEE ON LEGAL AFFAIRS
 ANNEX: OPINION OF THE CONSULTATIVE WORKING PARTY OF THE LEGAL SERVICES OF THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COMMISSION
 OPINION of the Committee on the Internal Market and Consumer Protection
 OPINION of the Committee on Legal Affairs
 PROCEDURE

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a directive of the European Parliament and of the Council on the insurance mediation (recast)

(COM(2012)0360 – C7-0180/2012 – 2012/0175(COD))

(Ordinary legislative procedure – recast)

The European Parliament,

–   having regard to the Commission proposal to Parliament and the Council (COM(2012)0360),

–   having regard to Article 294(2), and Article 53(1) and Article 62 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7-0180/2012),

–   having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–   having regard to the Interinstitutional Agreement of 28 November 2001 on a more structured use of the recasting technique for legal acts(1),

–   having regard its legislative resolution of 5 July 2011 on the proposal for a directive of the European Parliament and of the Council amending Directive 97/9/EC of the European Parliament and of the Council on investor compensation schemes(2),

–   having regard to its position of 16 February 2012 on the proposal for a directive of the European Parliament and of the Council on Deposit Guarantee Schemes (recast)(3),

–   having regard to the letter of 13 December 2013 from the Committee on Legal Affairs to the Committee on Economic and Monetary Affairs in accordance with Rule 87(3) of its Rules of Procedure,

–   having regard to Rules 87 and 55 of its Rules of Procedure,

–   having regard to the report of the Committee on Economic and Monetary Affairs and the opinions of the Committee on the Internal Market and Consumer Protection and the Committee on Legal Affairs (A7-0085/2014),

A. whereas, according to the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission, the Commission proposal does not include any substantive amendments other than those identified as such in the proposal and whereas, as regards the codification of the unchanged provisions of the earlier acts together with those amendments, the proposal contains a straightforward codification of the existing texts, without any change in their substance;

1.  Adopts its position at first reading hereinafter set out, taking into account the recommendations of the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission;

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

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

Amendment  1

AMENDMENTS BY THE EUROPEAN PARLIAMENT(4)*

to the Commission proposal

---------------------------------------------------------

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 53(1) and Article 62 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee,

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1)    Amendments are to be made to Directive 2002/92/EC of the European Parliament and the Council(5). Thus it is proposed that the Directive ▌be recast.

(2)    Since the main objective and subject-matter of this proposal is to harmonise national provisions concerning the mentioned areas, the proposal should be based on Article 53(1) and Article 62 TFEU. The form of a Directive is appropriate in order to enable the implementing provisions in the areas covered by this Directive, when necessary, to be adjusted to any existing specificities of the particular market and legal system in each Member State. This Directive should also aim at coordinating national rules concerning the access to the activity of insurance and reinsurance mediation, ▐ and is therefore based on Article 53(1) TFEU. In addition, since this is a sector offering services across the Union, this Directive is also based on Article 62 TFEU.

(3)    Insurance and reinsurance intermediaries play a central role in the distribution of insurance and reinsurance products in the Union.

(4)    Various types of persons or institutions, such as agents, brokers and 'bancassurance' operators, insurance undertakings, travel agents and car rental companies can distribute insurance products.▐

(4a)  In order to guarantee that the same level of protection applies and that the consumer can benefit from comparable standards it is essential that this Directive promotes a level playing field and competition on equal terms between intermediaries whether they are tied to an insurance undertaking or not. Consumers benefit if insurance products are mediated through a variety of channels and intermediaries with different forms of cooperation with insurance undertakings, provided that those channels and intermediaries have to apply the same rules on consumer protection. It is important that those aspects are taken into account by the Member States in the implementation of this Directive.

(5)    The application of Directive 2002/92/EC has shown that a number of provisions require further precision with a view to facilitating the exercise of insurance and reinsurance mediation and that the protection of consumers requires an extension of the scope of that Directive to all sales of insurance products as a main professional activity, whether by insurance intermediaries or insurance undertakings. In respect of their sales, after-sales and claims processes insurance undertakings which sell directly insurance products, should be brought into the scope of the new Directive on a similar basis as insurance agents and brokers.

(8)    There are still substantial differences between national provisions which create barriers to the taking-up and pursuit of the activities of insurance and reinsurance intermediaries in the internal market. There is a need to further strengthen the internal market and create a true European internal market for life and non-life insurance products and services.

(9)    Current and recent financial turbulence has underlined the importance of ensuring effective consumer protection across all financial sectors. It is appropriate therefore to strengthen the confidence of customers and to make regulatory treatment of the distribution of insurance products more uniform in order to ensure an adequate level of customer protection across the Union. The level of consumer protection should be raised in relation to Directive 2002/92/EC in order to reduce the need for varying national measures. It is important to take into consideration the specific nature of insurance contracts in comparison to investment products regulated under Directive 2014/.../EU of the European Parliament and of the Council [MiFID](6). The distribution of insurance contracts, including so called insurance investment products should therefore be regulated under this Directive and be aligned with Directive 2014/.../EU [MiFID]. The minimum standards need to be raised with regard to distribution rules and the creation of a level playing field applicable to all packaged insurance investment products. Measures to protect customers should be higher for 'non professional' than for 'professional' customers.

(10)  This Directive should apply to persons whose activity consists of providing insurance or reinsurance mediation services to third parties for remuneration, which may be pecuniary or take some other form of agreed economic benefit tied to performance.

(11)  This Directive should apply to persons whose activity consists of the provision of information on one or more contracts of insurance or reinsurance in response to criteria selected by the customer whether via a website or other means, or the provision of a ranking of insurance or reinsurance products or a discount on the price of a contract, when the customer is able to directly conclude an insurance contract at the end of the process; it should not apply to mere introducing activities consisting of the provision of data and information on potential policyholders to insurance or reinsurance intermediaries or undertakings or of information about insurance or reinsurance products or an insurance or reinsurance intermediary or undertaking to potential policyholders.

(12)  This Directive should not apply to persons with another professional activity, such as tax experts or accountants, who provide advice on insurance cover on an incidental basis in the course of that other professional activity, neither should it apply to the mere provision of information of a general nature on insurance products, provided that the purpose of that activity is not to help the customer conclude or fulfil an insurance or reinsurance contract. It should not apply to the professional management of claims on behalf of an insurance or reinsurance undertaking, nor to the loss adjusting and expert appraisal of claims.

(13)  This Directive should not apply to persons practising insurance mediation as an ancillary activity under certain restrictions regarding the policy, in particular the knowledge required to sell it, the risks covered and the amount of premium.

(14)  This Directive defines 'tied insurance intermediary' to take account of the characteristics of certain Member States' markets and to establish conditions applicable to such intermediaries.

(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; 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.

(16)  Insurance and reinsurance intermediaries should be able to avail themselves of the freedom of establishment and the freedom to provide services which are enshrined in the TFEU. Accordingly, registration with or a declaration to their home Member State should allow insurance and reinsurance intermediaries to operate in other Member States in accordance with the principles of freedom of establishment and freedom to provide services, provided that an appropriate notification procedure has been followed between the competent authorities.

(18)  In order to enhance transparency and facilitate cross-border trade, the European Insurance and Occupational Pensions Authority ('EIOPA'), established by Regulation (EU) No 1094/2010 of the European Parliament and of Council(7) should establish, publish and keep up to date a single electronic database containing a record of each insurance and reinsurance intermediary which has notified an intention to exercise its freedom of establishment or to provide services. Member States should provide relevant information to EIOPA promptly to enable it to do this. This database should show a hyperlink to each relevant competent authority in each Member State. Each competent authority of each Member State should show on its website a hyperlink to this database.

(19)  The relative rights and responsibilities of home and host Member States in respect of the supervision of insurance and reinsurance intermediaries registered by them or carrying on insurance or reinsurance mediation activities within their territory in exercise of the rights of freedom of establishment or freedom to provide services, should be clearly established.

(21)  The inability of insurance intermediaries to operate freely throughout the Union hinders the proper functioning of the single market in insurance. This Directive is an important step towards an increased level of consumer protection and market integration within the internal market.

(21a) An insurance or reinsurance intermediary carries on insurance mediation activities under the terms of freedom to provide services if he or she performs insurance or reinsurance mediation activities for a policy-holder or potential policy-holder resident or established in a Member State other than the Member State of origin of the intermediary, and each risk to be insured is located in a Member State other than the Member State of origin of the intermediary. An insurance or reinsurance intermediary carries on insurance or reinsurance mediation activities under the terms of freedom of establishment if it maintains a permanent presence in a Member State other than its Member State of origin.

(22)  It is important to guarantee a high level of professionalism and competence among insurance and reinsurance intermediaries and the employees of direct insurers who are involved in activities preparatory to, during and after the sales of insurance policies. Therefore, the professional knowledge of an intermediary and of the employees of direct insurers needs to match the level of complexity of these activities. Continuing education should be ensured. Issues of form, substance and required documentary evidence should be regulated by the Member States. Professional training organisations linked to the sector or belonging to an association should receive certification in that context.

(22a) For employees of an intermediary who advise on or sell insurance investment products to retail customers, Member States should ensure that they possess an appropriate level of knowledge and competence in relation to the products offered. This is particularly important given the increased complexity and the continuous innovation in the design of insurance investment products. Buying an insurance investment product implies a risk and investors should be able to rely on the information and quality of assessments provided. It is furthermore necessary that employees are given adequate time and resources to be able to provide all relevant information to clients about the products that they provide.

(23)  The coordination of national provisions on professional requirements and registration of persons taking up and pursuing the activity of insurance or reinsurance mediation can contribute both to the completion of the single market for financial services and to the enhancement of customer protection in this field.

(24)  In order to enhance cross border trade, principles regulating mutual recognition of intermediaries' knowledge and abilities should be introduced.

(25)  A national qualification accredited to level 3 or above under the European Qualification Framework established under the Recommendation of the European Parliament and Council of 23 April 2008 on the establishment of the European Qualifications Framework for lifelong learning should be accepted by a host member state as demonstrating that an insurance or reinsurance intermediary meets the requirements of knowledge and ability which are a condition of registration in accordance with this Directive. This framework helps Member States, education institutions, employers and individuals compare qualifications across the Union's diverse education and training systems. This tool is essential for developing a employment market throughout the Union. This framework is not designed to replace national qualifications systems but to supplement the actions of the Member States by facilitating cooperation between them.

(26)  Despite the existing single passport systems for insurers and intermediaries, the European insurance market remains very fragmented. In order to facilitate cross-border business and enhance transparency for consumers, Member States shall ensure publication of the general good rules applicable in their territories, and a single electronic register and information on all Member States' general good rules applicable to insurance and reinsurance mediation should be made publicly available.

(27)  Cooperation and exchange of information between the competent authorities are essential in order to protect customers and ensure the soundness of insurance and reinsurance business in the single market.

(28)  There is a need for appropriate and 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 ▐ under this Directive between insurance undertakings or persons selling or offering insurance products and customers. In the case of alternative dispute resolution (ADR), the provisions of Directive 2013/11/EU of the European Parliament and of the Council(8) should be binding also for the purposes of this Directive. 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, and the decisions which upon explicit request may be binding for the intermediary and the customer, 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 a 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. ▐

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 the Financial Services Complaints Network (FIN-NET).

(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 ▐ provide ▐ rules to ensure the interest of the customer are addressed.

(30)  Consumers should be provided in advance with clear information about the status of the persons who sell the insurance product. It would be worth considering introducing 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.

(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. ▐ The intermediary and the employee of the insurance intermediary or the insurance undertaking should be obliged to inform the customer, on request, about the nature and source of its remuneration in advance of the sale and, free of charge.

(32)  In order to provide a customer with comparable information on the insurance mediation services 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. (32a)  Where the cost of fees and inducements cannot be ascertained prior to the provision of the advice, then the manner of calculation must be disclosed in a comprehensive, accurate and understandable manner in the key services documents with the total aggregate cost and its impact on returns of the advice being disclosed to the client as soon as practically possible thereafter. Where investment advice is provided on an ongoing basis, disclosure as to the cost of investment advice, including inducements, must be provided on a periodic basis and at least annually. The periodic report shall disclose all inducements paid or received in the preceding period.

(32b) Any person selling insurance products, who is not the product manufacturer, should provide the retail investor in a separate key service document with details of their costs and services in accordance with this Directive and Directive 2014/.../EU [MiFID] as well as additional relevant information needed for the retail investor to assess the appropriateness of the of the insurance product for their needs which cannot be provided by the investment product manufacturer.

(32c) There is a benefit to consumers if insurance products are sold through various channels and intermediaries with different forms of cooperation with insurance undertakings provided they have to apply the same rules on consumer protection and transparency.

(33)  As the current proposal aims to enhance consumer protection, some of its provisions are only applicable in "business to consumer" (B2C) relationships, especially those which regulate conduct of business rules of insurance intermediaries or of other sellers of insurance products.

(34a) Member States should require that remuneration policies of insurance intermediaries and insurance undertakings in relation to their employees or representatives do not impair the ability to act in the best interests of customers. For employees who advise on or sell insurance investment products to customers, Member States should require that insurance intermediaries and insurance undertakings ensure that their remuneration by the firm does not affect employees' impartiality in making a suitable recommendation or appropriate sale or presenting information in a form that is fair, clear and not misleading. Remuneration in such situations should not be solely dependent on sales targets or the profit to the firm from a specific product.

(35)  It is important for the customer to know whether he/she is dealing with an intermediary who is advising the customer on products from a broad range of insurance undertakings or on products provided by a specific number of insurance undertakings.

(36)  Due to the increasing dependence of consumers on personal recommendations, it is appropriate to include a definition of advice. The quality of advice is crucial and any advice should reflect the personal characteristics of the customer. Before advice is provided, the insurance intermediary or undertaking should assess the customer's needs, expectations and its financial situation. If the intermediary declares that it is giving advice on products from a broad range of insurance undertakings, it should carry out a fair and wide-ranging analysis of a sufficiently large number of insurance products available on the market. In addition, all insurance intermediaries and insurance undertakings should explain the reasons underpinning their advice and recommend suitable insurance products according to the customer's preferences, needs, financial situation and personal circumstances.

(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 explain to the customer the key features of the insurance products it sells and therefore its staff should be given appropriate resources and time to do so.

(38)  Uniform rules should be laid down in order to facilitate the choice of the medium in which mandatory information is provided to the customer allowing for use of electronic communications where it is appropriate having regard to the circumstances of the transaction. However, the customer should be given the option to receive it on paper. In the interest of consumer access to information, all pre-contractual information should be accessible free of charge.

(39)  There is less of a need to require that such information be disclosed when the customer is seeking reinsurance or insurance cover for commercial and industrial risks, or is a professional customer▐.

(40)  This Directive should specify the minimum obligations which insurance undertakings and insurance intermediaries should have in providing information to customers. A Member State should be able to in this area maintain or adopt more stringent provisions which may be imposed on insurance intermediaries and insurance undertakings independently of the provisions of their home Member State where they are pursuing insurance mediation activities on its territory provided that any such more stringent provisions comply with Union law, including Directive 2000/31/EC of the European Parliament and of the Council(9) . A Member State which proposes to apply and applies provisions regulating insurance intermediaries and the sale of insurance products in addition to those set out in this Directive should ensure that the administrative burden stemming from these provisions remains limited.

(41)  Cross-selling practices are a common and appropriate strategy for retail financial service providers throughout the Union. ▐

41a   When insurance is offered together with another service or product as part of a package or as a condition for the same agreement or package, it is subject to the provisions of the directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market. This Directive also provides a set of protections for customers when they purchase insurance as part of a package. Member States may require that national competent authorities may adopt or maintain additional measures to address cross selling practices that are detrimental to consumers.

(42)  Contracts of insurance that involve investments are often made available to customers as potential alternatives or substitutes to investment products subject to Directive 2014/.../EU [MiFID]. To deliver consistent investor protection and avoid the risk of regulatory arbitrage, it is important that retail investment products (insurance investment products as defined in the Regulation on key information documents for investment products) are subject to the same conduct of business standards: these include provision of appropriate information, requirements for advice to be suitable and restrictions on inducements, as well as requirements to manage conflicts of interest further restrictions on ▐ remuneration. The European Supervisory Authority (European Securities and Markets Authority) ('ESMA'), established by Regulation (EU) No 1095/2010 of the European Parliament and of the Council(10) and EIOPA should work together to achieve as much consistency as possible in the conduct of business standards for retail investment products that are subject to either Directive 2014/.../EU [MiFID] or to this Directive through guidelines. The specificities of non-life insurance products should, however, be taken into account in those guidelines. Also, in line with the analogous principle in Directive 2014/.../EU [MIFID], an analogous regime for insurance undertakings, when implementing this Directive at national level, and in the joint committee's guidelines should be considered. For insurance investment products, there should be enhanced conduct of business standards that replace the standards of this Directive which are applicable to general insurance contracts ▐. Accordingly, persons carrying out insurance mediation in relation to insurance investment products should comply with the ▐ enhanced standards applicable to such products.

42a   After adoption of MiFiD II, Chapter VII of this Directive should be reviewed in order to avoid regulatory overlap, contradicting legislation and adaptation problems.

(42b) This Directive lays down rules concerning the taking-up and pursuit of the activities of insurance and reinsurance mediation by natural and legal persons which are established in a Member State or which wish to be established there. Provisions of other Union instruments which depart from or supplement those rules should not apply to the activities of insurance and reinsurance mediation.

(43)  In order to ensure compliance with the provisions of this Directive by insurance undertakings and persons who pursue insurance mediation, and to ensure that they are subject to similar treatment across the Union, Member States should be required to provide for administrative penalties and other measures which are effective, proportionate and dissuasive. A review of existing powers and their practical application has been carried out with the aim of promoting convergence of penalties and other measures in the Commission Communication of 8 December 2010 on reinforcing penalty regimes in the financial sector. Therefore, administrative penalties and other measures laid down by Member States should satisfy certain essential requirements in relation to addressees, criteria to be taken into account when applying a penalty or other measure, publication and key ▐ powers ▐ to impose penalties.

(44)  In particular, the competent authorities should be empowered to impose pecuniary penalties which are sufficiently high to offset the benefits that can be expected and to be dissuasive even for larger institutions and their managers.

(45)  In order to ensure a consistent application of penalties across Member States, when determining the type of administrative penalties or other measures and the level of administrative pecuniary penalties, Member States should be required to ensure that the competent authorities take into account all relevant circumstances. Member States are however not obliged to provide for administrative penalties when national law provides for penalties within the criminal justice system.

(46)  In order to strengthen the dissuasive effect on the public at large and to inform about breaches of rules which may be detrimental to customer protection, penalties and measures imposed should be published, except in certain well-defined circumstances. In order to ensure compliance with the principle of proportionality, penalties and other measures imposed should be published on an anonymous basis where publication would cause a disproportionate damage to the parties involved.

(47)  In order to detect potential breaches, the competent authorities should have the necessary investigatory powers, and should establish effective mechanisms to encourage reporting of potential or actual breaches which provide appropriate protection for those who denounce such breaches. However this Directive does not imply that Member States have to give administrative authorities the power to conduct criminal investigations.

(48)  This Directive should refer to both administrative penalties and other measures irrespective of their qualification as a penalty or other a measure under national law.

(49)  This Directive should be without prejudice to any provisions in the laws of Member States in respect of criminal offences.

(49a) Whistleblowers bring new information to the attention of competent authorities which assists them in detecting and penalising cases of insider dealing and market manipulation. However, whistleblowing may be deterred for fear of retaliation, or for lack of adequate procedures for reporting breaches. This Directive should therefore ensure that adequate arrangements are in place to encourage whistleblowers to alert competent authorities to possible breaches of this Directive and to protect them from retaliation. Member States should also ensure that whistleblowing schemes they implement include mechanisms that provide appropriate protection of a reported person, particularly with regard the right to the protection of personal data and procedures to ensure the rights of the defence of the reported person and the right to be heard before the adoption of a decision concerning that person as well as the right to seek effective remedy before a court against a decision concerning that person.

(50)  In order to attain the objectives set out in this Directive, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission in respect of ▐ management of conflicts of interest, conduct of business obligations in relation to insurance packaged retail investment products and procedures and forms for submitting information in relation to penalties. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council

(51)  Technical standards in financial services should ensure consistent harmonisation and adequate protection of consumers across the Union. As EIOPA is a body with highly specialised expertise, but limited capacities, it could be entrusted solely with the elaboration of draft proposals which do not necessitate policy choices, for submission to the European Parliament and to the Commission.

(52)  By means of delegated acts pursuant to Articles 290 and 291 of the TFEU and in accordance with Articles 10 to 15 of Regulation (EU) No 1094/2010 [...], the Commission should adopt delegated acts as set out in this Directive regarding management of conflicts of interest, regarding conduct of business obligations in relation to insurance packaged retail investment products as well as implementing technical standards and regarding procedures and forms for submitting information in relation to penalties. These delegated acts and implementing technical standards should be developed in draft by EIOPA.

(53)  Directive 95/46 of the European Parliament and of the Council [...](11) and Regulation (EU) No 45/2001 of the European Parliament and of the Council[...](12) shall govern the processing of personal data carried out by EIOPA within the framework of this Regulation, under the supervision of the European Data Protection Supervisor.

(54)  This Directive respects the fundamental rights and observes the principles recognised in the Charter of Fundamental Rights of the European Union, as enshrined in the Treaty.

(55)  In accordance with the Joint Political Declaration of Member States and the Commission on explanatory documents of 28 September 2011(13), Member States have undertaken to accompany, in justified cases, the notification of their transposition measures with one or more documents explaining the relationship between the components of a directive and the corresponding parts of national transposition instruments. With regard to this Directive, the legislator considers the transmission of such documents to be justified.

(55a) The supervisory authorities of the Member States should have at their disposal all means necessary to ensure the orderly pursuit of business by insurance intermediaries and reinsurance undertakings throughout the Union, whether pursued in accordance with the right of establishment or the freedom to provide services. In order to ensure the effectiveness of the supervision all actions taken by the supervisory authorities should be proportionate to the nature, scale and complexity of the risks inherent in the business of an insurance or reinsurance undertaking, regardless of the importance of the undertaking concerned for the overall financial stability of the market.

(55b) This Directive should not be too burdensome for small and medium-sized insurance undertakings. One of the tools by which to achieve that objective is the proper application of the proportionality principle. That principle should apply both to the requirements imposed on the insurance and reinsurance undertakings and to the exercise of supervisory powers.

(56)  A review of this Directive should be carried out three years after the date on which this Directive enters into force in order to take account of market developments as well as developments in other areas of Union law or Member States experiences in implementation of Union law, in particular with regard to products covered by Directive 2003/41/EC of the European Parliament and of the Council(14).

(57)  Directive 2002/92/EC should accordingly be repealed.

(58)  The obligation to transpose this Directive into national law should be confined to those provisions which represent an amendment of the substance of Directive 2002/92/EC. The obligation to transpose the provisions which are unchanged arises under Directive 2002/92/EC.

(59)  This Directive should be without prejudice to the obligations of the Member States relating to the time-limits for transposition into national law of Directive 2002/92/EC,

HAVE ADOPTED THIS DIRECTIVE:

CHAPTER I

SCOPE AND DEFINITIONS

Article 1Scope

1.      This Directive lays down rules concerning the taking-up and pursuit of the activities of insurance and reinsurance mediation, ▐ by natural and legal persons which are established in a Member State or which wish to be established there.

2.      This Directive shall not apply to persons providing mediation services for insurance contracts if all the following conditions are met:

(a)         the insurance contract only requires knowledge of the insurance cover that is provided;

(b)         the insurance contract is not a life assurance contract;

(c)         the insurance contract does not cover any liability risks;

(d)         the principal professional activity of the person is other than insurance mediation.

(e)         the insurance is complementary to the supply of goods or provision of a service by any provider, where such insurance covers the risk of breakdown, loss or theft of or damage to the goods supplied by that provider;

(f)          the amount of the annual premium for the insurance contract, when pro-rated to produce an annual amount, does not exceed EUR 600.

3.      This Directive shall not apply to insurance and reinsurance mediation services provided in relation to risks and commitments located outside the Union.

This Directive shall not affect a Member State's law in respect of insurance and reinsurance mediation business pursued by insurance and reinsurance undertakings or intermediaries established in a third country and operating on its territory under the principle of freedom to provide services, provided that equal treatment is guaranteed to all persons carrying out or authorised to carry out insurance and reinsurance mediation activities on that market.

This Directive shall not regulate insurance or reinsurance mediation activities carried out in third countries.

Member States shall inform the Commission of any general difficulties which their insurance intermediaries encounter in establishing themselves or carrying out insurance mediation activities in any third country.

3a.    This Directive shall ensure that the same level of protection applies and that the consumer can benefit from comparable standards. This Directive shall promote a level playing field and competition on equal terms between intermediaries whether or not they are tied to an insurance undertaking. There is a benefit to consumers if insurance products are mediated through various channels and intermediaries with different forms of cooperation with insurance undertakings provided that they have to apply the similar rules on consumer protection. This shall be taken into account by the Member States in the implementation of this Directive.

Article 2Definitions

1.      For the purposes of this Directive:

(1)    ‘insurance undertaking’ means an insurance undertaking as defined in Article 13(1) of Directive 2009/138/EC of the European Parliament and of the Council(15);

(2)    'reinsurance undertaking' means a reinsurance undertaking as defined in Article 13(4) of Directive 2009/138/;

(3)    'insurance mediation' means the activities of advising on, proposing, or carrying out other work preparatory to the conclusion of insurance, concluding such contracts or assisting in the administration and performance of such contracts. The activities of advising on, proposing or concluding contracts of insurance shall be considered to be insurance mediation also if carried on by an employee of an insurance undertaking in direct contact with the insured, without the intervention of an insurance intermediary.

The following activities shall be considered as insurance mediation within the meaning of this directive:

provision of information concerning one or more insurance contracts in accordance with criteria selected by customers through a website or other media and the compilation of an insurance product ranking list, including price and product comparison, or the discounting of premiums, when at the end of the process the customer is able directly to conclude an insurance contract using a website or other media;

Neither of the following activities shall be considered to be insurance mediation for the purposes of this Directive:

(a)         the provision of information on an incidental basis to a customer in the context of another professional activity, if the provider does not take any additional steps to assist the customer in concluding or performing an insurance contract;

(b)         the mere provision of data and information on potential policyholders to insurance intermediaries or insurance undertakings or of information about insurance products or an insurance intermediary or insurance undertaking to potential policyholders.

(4)    'insurance-based investment product' means an insurance product which offers a maturity or surrender value and where that maturity or surrender value is wholly or partially exposed, directly or indirectly, to market fluctuations, not including:

(a)         non-life insurance products as listed in Annex I of Directive 2009/138/EC (Classes of Non-life Insurance);

(b)         life insurance contracts where the benefits under the contract are payable only on death or in respect of incapacity due to injury, sickness or disability;

(c)         pension products which, under national law, are recognised as having the primary purpose of providing the investor with an income in retirement, and which entitles the investor to certain benefits;

(d)         occupational pension schemes that are officially recognised and that fall within the scope of Directive 2003/41/EC or Directive 2009/138/EC;

(e)         individual pension products for which a financial contribution from the employer is required by national law and where the employer or the employee has no choice as to the pension product or provider;

(5)    'insurance intermediary' means a natural or legal person, other than an insurance undertaking or its employees, who, for remuneration, takes up or pursues reinsurance mediation;

(6)    'reinsurance mediation' means the activities of advising on, proposing, or carrying out other work preparatory to the conclusion of contracts of insurance or reinsurance, of concluding such contracts or assisting in the administration and performance of such contracts, in particular in the event of a claim, including when carried on by a reinsurance undertaking without the intervention of a reinsurance intermediary;

None of the following activities shall be considered to be reinsurance mediation for the purposes of this Directive:

(a)         the provision of information on an incidental basis in the context of another professional activity provided that the purpose of that activity is not to assist the customer in concluding or performing a reinsurance contract;

(aa)       the management of claims of a reinsurance undertaking on a professional basis, and loss adjusting and expert appraisal of claims;

(b)         the mere provision of data and information on potential policyholders to reinsurance intermediaries or reinsurance undertakings or of information about reinsurance products or a reinsurance intermediary or reinsurance undertaking to potential policyholders.

(7)    'reinsurance intermediary' means any natural or legal person, other than a reinsurance undertaking or its employees, who, for remuneration, takes up or pursues reinsurance mediation;

(8)    'tied insurance intermediary' means any person who carries on the activity of insurance mediation for and on behalf of one or , in the case of insurance products not in competition, several insurance undertakings or insurance intermediaries, but does not collect premiums or amounts intended for the customer and who acts under the full responsibility of those insurance undertakings or insurance intermediaries, provided that the insurance intermediaries under whose responsibility the person acts do not themselves act under the responsibility of another insurance undertaking or intermediary;

Any person who carries out the activity of insurance mediation in addition to a principal professional activity shall also be considered to be a tied insurance intermediary acting under the responsibility of one or several insurance undertakings for the products which concern them respectively if the insurance is complementary to the goods supplied or to the services provided within the framework of that principal professional activity;

(9)    'advice' means the provision of a personal recommendation to a customer, either upon their request or at the initiative of the insurance undertaking or the insurance intermediary;

(10)  'contingent commission' means ▐ remuneration in the form of a commission ▐ based on the achievement of pre-agreed targets or thresholds relating to the volume of business placed by the intermediary with the insurer;

(11)  'large risks' means large risks as defined in Article 13(27) of Directive 2009/138/EC;

(12)  'home Member State' means:

(a)         where the intermediary is a natural person, the Member State in which his residence is situated ;

(b)         where the intermediary is a legal person, the Member State in which its registered office is situated or, if under its national law it has no registered office, the Member State in which its head office is situated;

(13)  'host Member State' means the Member State in which an insurance or reinsurance intermediary has a permanent presence or establishment or provides services and which is not its home Member State;

(14)  'durable medium' means a durable medium as defined in Article 2(m) of Directive 2009/65/EC of the European Parliament and of the Council(16);

(16)  'close links' means a situation referred to in Article 13 point 7 of Directive 2009/130/EC;

(17)  'primary place of business' means the location from where the main business is managed;

(18)  'remuneration' means any commission, fee, charge or other payment, including an economic benefit or a benefit-in-kind of any kind, and any other incentives offered or given in connection with insurance mediation activities;

(19)  'tying practice' means the offering or the selling of an insurance product in a package with other distinct ancillary products or services where the insurance product is not made available to the consumer separately;

(20)  'bundling practice' means the offering or the selling of an insurance product in a package with other distinct ancillary products or services where the insurance product is also made available to the consumer separately but not necessarily on the same terms or conditions as when offered bundled with the ancillary services;(20a)  ‘product’ means an insurance contract covering one or more risks;

(20b) 'retail' means non-professional.

2.      In order to guarantee that the same level of protection applies and that the consumer can benefit from comparable standards it is essential that this Directive promotes a level playing field and competition on equal terms between intermediaries whether they tied to an insurance undertaking or not. The Member States shall take into account the importance of promoting a level playing field and competition on equal terms in the implementation of this Directive.

CHAPTER II

REGISTRATION REQUIREMENTS

Article 3Registration

1.      Except as provided in Article 4, insurance and reinsurance intermediaries shall be registered with a competent authority as referred to in Article 10(2), in their home Member State. Insurance and reinsurance undertakings registered in Member States under Council Directive 73/239/EEC(17), Directive 2002/83/EC of the European Parliament and of the Council(18) and Directive 2005/68/EC of the European Parliament and of the Council(19) and their employees shall not be required to register again under this Directive.

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 to such intermediaries. In particular, in the case of tied insurance intermediaries, they may 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.

Member States may stipulate that, where an insurance or reinsurance intermediary acts under the responsibility of an insurance or reinsurance undertaking or intermediary, the insurance intermediary shall not be required to provide the competent authority with the information in Article 3(7)(a) and (b) and the insurance entity responsible shall ensure that the insurance intermediary meets the conditions for registration and other provisions set out in this Directive. Member States may also stipulate that the person or entity which takes responsibility for the intermediary shall register that intermediary.

Member States need not 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.

Member States shall ensure the registration of legal persons and shall also specify in the register the names of the natural persons within the management who are responsible for the mediation business.

2.      Member States may establish more than one register for insurance and reinsurance intermediaries provided that they lay down the criteria according to which intermediaries are to be registered.

Member States shall establish an online registration system consisting of one single registration form available on an internet website, which should be easily accessible for insurance intermediaries and undertakings, and allowing the form to be completed directly online.

3.      Member States shall see to it that a single information point is established allowing quick and easy access to information from these various registers, which shall be compiled electronically and kept constantly updated. This information point shall also provide the identification details of the competent authorities of each Member State referred to in paragraph 1, first subparagraph. The register shall indicate further the country or countries in which the intermediary conducts business under the rules on the freedom of establishment or on the freedom to provide services.

4.      EIOPA shall establish, publish on its website and keep up-to-date a single electronic register containing records of insurance and reinsurance intermediaries which have notified their intention to carry on cross-border business in accordance with Chapter IV. Member States shall provide relevant information to EIOPA promptly to enable it to do this. This register shall show a hyperlink to each relevant competent authority in each Member State. That register shall contain links to, and be accessible from, each of the Member States' competent authorities' websites. EIOPA shall have right of access to the data stored there. EIOPA and the competent authorities shall have the right to modify this data. Data subjects whose personal details can be stored and exchanged shall be entitled to access and have the right to be appropriately informed.

EIOPA shall establish a website with hyperlinks to each single information point established by Member States under Article 3(3).

Member States shall ensure that registration of insurance intermediaries, including tied ones, and reinsurance intermediaries is made subject to the fulfilment of the professional requirements laid down in Article 8.

Member States shall also ensure that insurance intermediaries, including tied ones, and reinsurance intermediaries who cease to fulfil these requirements are immediately removed from the register. The validity of the registration shall be subject to a regular review by the competent authority. If necessary, the home Member State shall inform the host Member State of such removal.

5.      Member States shall ensure that the competent authorities do not register an insurance or reinsurance intermediary unless that the intermediary meets the requirements laid down in Article 8, or that another intermediary or undertaking will take responsibility for ensuring that the intermediary meets these requirements in accordance with subparagraph 3 of Article 3(1).

5a.    Registered insurance and reinsurance intermediaries shall be allowed to take up and pursue the activity of insurance and reinsurance mediation in the Union by means of both freedom of establishment and freedom to provide services.

An insurance intermediary is operating under Freedom to provide services if it intends to supply a policyholder, who is established in a Member State different from the one where the insurance intermediary is established, with an insurance contract relating to a risk situated in a Member States different from the Member State where the insurance intermediary is established.

The competent authorities may provide the insurance and reinsurance intermediaries with a document enabling any interested party by consultation of any of the registers referred to in paragraph 2 to verify that they are duly registered.

That document shall at least provide the information specified in Article 16(a) (i) and (iii) and (b)(i) and (iii), and, in the case of a legal person, the name(s) of the natural person(s) referred to in the fourth subparagraph of paragraph 1 of this Article.

The Member State shall require the return of the document to the competent authority which issued it when the insurance or reinsurance intermediary concerned ceases to be registered.

6.      Member States shall provide that applications by intermediaries for inclusion in the register shall be treated within two months of the submission of a complete application, and that the applicant shall be notified promptly of the decision.

Member States shall ensure that the competent authorities have in place appropriate measures enabling them to monitor whether insurance and reinsurance intermediaries continue to meet the registration requirements of this Directive at all times.

7.      Member States shall ensure that their competent authorities request evidence of the following as a condition of registration from insurance and reinsurance intermediaries other than for tied intermediaries and intermediaries where another insurance entity takes responsibility for ensuring that the intermediary meets these requirements in accordance with subparagraph 3 of Article 3(1).

(a)         to provide information to their competent authorities of the identities of shareholders or members, whether natural or legal persons, that have a holding in the intermediary that exceeds 10% and the amounts of those holdings;

(b)         to provide information to their competent authorities of the identities of persons who have close links with the insurance or reinsurance intermediary;

(c)         to demonstrate in a satisfactory manner that the holdings or close links do not prevent the effective exercise of the supervisory functions of the competent authority.

Member States shall ensure that their competent authorities require that insurance and reinsurance intermediaries to whom Article 3(7) applies inform them without undue delay where information provided under Article 3(7)(a) and (b) changes.

8.      Member States shall ensure that the competent authorities refuse registration if the laws, regulations or administrative provisions of a third country governing one or more natural or legal persons with which the insurance or reinsurance intermediary has close links, or difficulties involved in the enforcement of those laws, regulations or administrative provisions, prevent the effective exercise of their supervisory functions.

8a.    Member States may provide that those persons who exercised a mediation activity before 1 January 2014, who were entered in a register and who had a level of training and experience similar to that required by this Directive, shall be automatically entered in the register to be created, once the requirements set down in Article 4(3) and (4) are complied with.

CHAPTER III

SIMPLIFIED REGISTRATION PROCEDURE – DECLARATION OF ACTIVITIES

Article 4 Declaration procedure for providing ancillary insurance mediation; professional management of claims or loss assessment services

1.      The registration requirements in Article 3 shall not 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 the declaration;

(c)         the insurance products concerned do not cover life assurance or liability risks, unless that cover complements the product or service which the intermediary provides as his principal professional activity;

(ca)       the intermediary works under the responsibility of a registered intermediary.

3.      Any insurance intermediary who is subject to paragraphs 1 and 2 of this Article shall submit to the competent authority of its home Member State a declaration whereby it informs the competent authority of its identity, address and professional activities.

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.

4a.    Member States may apply the registration requirements in Article 3 to insurance intermediaries within the scope of Article 4, if they consider it necessary to do so in the interests of consumer protection.

CHAPTER IV

FREEDOM TO PROVIDE SERVICES AND FREEDOM OF ESTABLISHMENT

Article 5

Exercise of the freedom to provide services 

1.      Any insurance or reinsurance intermediary who intends to carry on business within the territory of another Member State for the first time under the freedom to provide services shall communicate the following information to the competent authority of his home Member State .

(a)         the name, address and any registration number of the intermediary;

(b)         the Member State or States in which the intermediary intends to operate;

(c)         the category of intermediary and, if applicable, the name of any insurance or reinsurance undertaking represented;

(d)         the relevant classes of insurance, if applicable;

(e)         demonstration of professional knowledge and ability.

2.      The competent authority of the home Member State shall, within one month of receiving the information referred to in paragraph 1, forward it to the competent authority of the host Member State, which shall acknowledge the receipt without delay. The home Member State shall inform the insurance or reinsurance intermediary in writing that the information has been received by the host Member State and that the insurance or reinsurance undertaking can commence its business in the host Member State.

When receiving the information referred to in paragraph 1, the host Member State shall accept previous experience in insurance or reinsurance mediation activity, as demonstrated by proof of registration or declaration in the home Member State, as evidence of the required knowledge and ability.

3.      The proof of the previous registration or declaration shall be established by evidence of registration issued or declaration received by the competent authority or body of the home Member State of the applicant, which the latter shall submit in support of his application presented to the host Member State.

4.      In the event of a change in any of the particulars communicated in accordance with paragraph 1, the insurance or reinsurance intermediary shall give written notice of that change to the competent authority of the home Member State at least one month before implementing the change. The competent authority of the host Member State shall also be informed of that change by the competent authority of the home Member State as soon as is practicable and no later than one month from the date of receipt of the information by the competent authority of the home Member State.

4a.    A registered insurance or reinsurance intermediary carries on an insurance mediation activity under the 'freedom of services' if:

(a)         it carries on insurance or reinsurance mediation with or for a policyholder who resides or is established in a Member State different from the home Member State of the intermediary;

(b)         any risk to be insured is situated in a Member State different from the home Member State of the intermediary;

(c)         it complies with paragraphs 1 and 4.

Article 6 Exercise of the freedom of establishment

1.      Member States shall require any insurance or reinsurance intermediary who intends to exercise his freedom of establishment to establish a branch within the territory of another Member State first to notify the competent authority of his home Member State and to provide it with the following information:

(a)         the name, address and registration number, where applicable, of the intermediary;

(b)         the Member State within the territory of which he plans to establish a branch or permanent presence;

(c)         the category of intermediary and, if applicable, the name of any insurance or reinsurance undertaking represented ;

(d)         the relevant classes of insurance, if applicable;

(e)         a programme of operations setting out, the insurance or reinsurance mediation activities to be carried on and the organisational structure of the establishment; also indicating the identity of agents where the intermediary intends to use them ;

(f)          the address in the host Member State from which documents may be obtained;

(g)         the name of any person responsible for the management of the establishment or permanent presence.

1a.    An insurance intermediary is operating under freedom of establishment if it carries on business in a host Member State for an indefinite period via a permanent presence in that Member State.

2.      Unless the competent authority of the home Member State has grounds for considering the organisational structure or the financial situation of the insurance or reinsurance intermediary to be inadequate, taking into account the mediation activities envisaged, it shall, within one month of receiving the information referred to in paragraph 1, communicate it to the competent authority of the host Member State, which shall acknowledge the receipt without delay. The home Member State shall inform the insurance or reinsurance intermediary in writing that the information has been received by the host Member State and that the insurance or reinsurance undertaking can commence its business in the host Member State.

3.      Where the competent authority of the home Member State refuses to communicate the information to the competent authority of the host Member State, it shall give reasons for its refusal to the insurance or reinsurance intermediary within one month of receiving all the information referred to in paragraph 1.

4.      In the event of a change in any of the particulars communicated in accordance with paragraph 1, an insurance or reinsurance intermediary shall give written notice of that change to the competent authority of the home Member State at least one month before implementing the change. The competent authority of the host Member State shall also be informed of that change by the competent authority of the home Member State as soon as is practicable and no later than one month from the date of receipt of the information by the competent authority of the home Member State.

Article 7 Division of competence between home and

host Member States

1.      If an insurance intermediary's primary place of business is located in another Member State, then the competent authority of that other Member State may agree with the home Member State competent authority to act as if it were the home Member State competent authority with regard to the obligations in chapters VI, VII and VIII of this Directive. In the event of such an agreement, the home Member State competent authority shall notify the insurance intermediary and EIOPA without delay.

2.      The competent authority of the host Member State shall assume responsibility for ensuring that the services provided by the establishment within its territory comply with the obligations laid down in Chapters VI and VII and in measures adopted pursuant thereto.

The competent authority of the host Member State shall have the right to examine establishment arrangements and to request such changes as are strictly needed to enable the competent authority to enforce the obligations under Chapter VI and Chapter VII and measures adopted pursuant thereto with respect to the services or activities provided by the establishment within its territory.

3.      Where the host Member State has grounds for concluding that an insurance or reinsurance intermediary acting within its territory under the freedom to provide services or through an establishment is in breach of any obligation set out in this Directive it shall refer those findings to the competent authority of the home Member State which shall take the appropriate measures. In cases where, despite measures taken by the competent authority of the home Member State, an insurance or reinsurance intermediary persists in acting in a manner that is clearly prejudicial to the interests of host Member State consumers or the orderly functioning of insurance and reinsurance markets, the insurance or reinsurance intermediary shall be subject to the following measures:

(a)         the competent authority of the host Member State, after informing the competent authority of the home Member State, shall take all the appropriate measures needed in order to protect consumers and the proper functioning of insurance and reinsurance markets including by preventing the offending insurance or reinsurance intermediaries from initiating any further transactions within its territory; the competent authority of the host Member State shall inform the Commission of such measures without undue delay;

(b)         the competent authority of the host Member State may refer the matter to EIOPA and request its assistance in accordance with Article 19 of Regulation (EU) No 1094/2010; in that case, EIOPA may act in accordance with the powers conferred on it by that Article in cases of a disagreement between the competent authorities of the host and home Member States.

4.      Where the competent authorities of a host Member State ascertain that an insurance or reinsurance intermediary who has an establishment within its territory is in breach of the legal or regulatory provisions adopted in that Member State pursuant to those provisions of this Directive which confer powers on the host Member State's competent authorities, those authorities shall require the insurance or reinsurance intermediary concerned to put an end to this situation.

In cases where, despite measures taken by the competent authority of the host Member State, an insurance or reinsurance intermediary persists in acting in a manner that is clearly prejudicial to the interests of host Member State consumers or the orderly functioning of insurance and reinsurance markets, the insurance or reinsurance intermediary shall be subject to the following measures:

(a)         the competent authority of the host Member State, after informing the competent authority of the home Member State, shall take all the appropriate measures needed in order to protect consumers and the proper functioning of the markets including by preventing the offending insurance or reinsurance intermediaries from initiating any further transactions within its territory; the competent authority of the host Member State shall inform the Commission of such measures without undue delay;

(b)         the competent authority of the host Member State may refer the matter to EIOPA and request its assistance in accordance with Article 19 of Regulation (EU) No 1094/2010; in that case, EIOPA may act in accordance with the powers conferred on it by that Article in cases of a disagreement between the competent authorities of the host and home Member States.

CHAPTER V

OTHER ORGANISATIONAL REQUIREMENTS

Article 8 Professional  and organisational  requirements

1.      Insurance and reinsurance intermediaries, ▐ and members of staff of insurance undertakings carrying out insurance mediation activities, shall possess appropriate knowledge and ability, as determined by the home Member State of the intermediary or undertaking, to complete their tasks and perform their duties adequately▐.

Member States shall ensure that ▐ members of staff of insurance and reinsurance intermediaries and insurance undertakings, which pursue insurance mediation as principal professional activity, regularly update their knowledge and ability appropriate to the function they are performing and the relevant market.

To ensure that these provisions are complied with a continuing professional development and sufficient and appropriate training to their staff of at least 200 hours in a five-year period, or a proportional number of hours where it is not their principal activity, needs to be fulfilled. Member States shall also make public the criteria they have established in order for staff to meet their competence requirements. Such criteria shall include a list of any qualifications they recognise.

To that end, Member States shall have in place mechanisms to control, asses, and certify the knowledge and skills through independent bodies.

Member States shall adjust the required conditions with regard to knowledge and ability in line with the particular activity of insurance or reinsurance mediation and the products mediated, particularly if the principal professional activity of the intermediary is other than insurance mediation. ▐ Member States may provide that in the cases referred to in the second subparagraph of Article 3(1) and with regard to the employees of insurance companies engaged in insurance mediation, the insurance undertaking or intermediary shall verify that the knowledge and ability of the intermediaries are in conformity with the obligations set out in the first subparagraph of this paragraph and, if need be, shall provide such intermediaries with training which corresponds to the requirements concerning the products sold by the intermediaries.

Member States need not apply the requirement referred to in the first subparagraph of this paragraph to all the natural persons working in an insurance undertaking or insurance or reinsurance intermediary who pursue the activity of insurance or reinsurance mediation. Member States shall ensure that a reasonable proportion of the persons within the management structure of such undertakings who are responsible for mediation in respect of insurance and reinsurance products and all other persons directly involved in insurance or reinsurance mediation demonstrate the knowledge and ability necessary for the performance of their duties.

2.      Insurance and reinsurance intermediaries and members of staff of insurance undertakings carrying out insurance mediation activities shall be of good repute. As a minimum, those directly involved in the marketing or selling of the product shall have a clean police record or any other national equivalent in relation to serious criminal offences linked to crimes against property or other crimes related to financial activities ▐.

Member States may, in accordance with the provisions of the second subparagraph of Article 3(1), allow the insurance undertaking to check the good repute of insurance intermediaries.

Member States need not apply the requirement referred to in the first subparagraph of this paragraph to all the natural persons who work in an insurance undertaking or insurance and reinsurance intermediary and who pursue the activity of insurance and reinsurance mediation. Member States shall ensure that the management structure of such undertakings and any staff directly involved in insurance or reinsurance mediation fulfil that requirement.

3.      Insurance and reinsurance intermediaries shall hold professional indemnity insurance covering the whole territory of the Union or some other comparable guarantee against liability arising from professional negligence, for at least EUR 1 250 000 applying to each claim and in aggregate EUR 1 850 000 per year for all claims, 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 or such undertaking has taken on full responsibility for the intermediary's actions.

4       Member States shall take all necessary measures to protect customers against the inability of the insurance intermediary to transfer the premium to the insurance undertaking or to transfer the amount of claim or return premium to the insured.

Such measures shall take any one or more of the following forms:

(a)         provisions laid down by law or 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;

(b)         a requirement for insurance intermediaries to have financial capacity amounting, on a permanent basis, to 4 % of the sum of annual premiums received, subject to a minimum of EUR 18 750;

(c)         a requirement that customers' monies shall be transferred via strictly segregated customer accounts and that these accounts shall not be used to reimburse other creditors in the event of bankruptcy;

(d)         a requirement that a guarantee fund be set up.

5.      Pursuit of the activities of insurance and reinsurance mediation shall require that the professional requirements set out in this Article be fulfilled on a permanent basis.

6.      Member States may reinforce the requirements set out in this Article or add other requirements for insurance and reinsurance intermediaries registered within their jurisdiction.

7.      EIOPA shall review the amounts referred to in paragraphs 3 and 4 regularly in order to take account of changes in the European Index of Consumer Prices as published by Eurostat. The first review shall take place five years after the entry into force of this Directive and the successive reviews every five years after the previous review date.

EIOPA shall develop draft regulatory standards which adapt the base amount in euro referred to in paragraphs 3 and 4 by the percentage change in that Index over the period between the entry into force of this Directive and the first review date or between the last review date and the new review date and rounded up to the nearest euro.

EIOPA shall submit those draft regulatory technical standards to the Commission five years after the entry into force of this Directive and the successive reviews every five years after the previous review date.

Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1094/2010.

8.      Member States shall specify

(a)         the notion of adequate knowledge and ability of the intermediary and members of staff of insurance undertakings when carrying on insurance mediation with its customers as referred to in paragraph 1 of this Article;

(b)         appropriate criteria for determining in particular the level of professional qualifications, experiences and skills required for carrying on insurance mediation;

(c)         the steps that insurance intermediaries and member of staff of insurance undertakings might reasonably be expected to take to update their knowledge and ability through continuing professional development in order to maintain an adequate level of performance.

8a.    Where a home Member State registers an insurance intermediary which has obtained professional qualifications or experience in another member state, it shall take into consideration the qualifications and experience, having regard to Directive 2005/36/EC of the European Parliament and (20)of the Council and the level of the qualification as it is defined under the European Qualifications Framework for lifelong learning established under the Recommendation of the European Parliament and Council of 23 April 2008(21).

Article 9 Publication of general good rules

1.      Member States shall take the necessary steps to ensure appropriate publication by their competent authorities of the relevant national legal provisions protecting the general good which are applicable to the carrying on of insurance and reinsurance mediation business in their territories.

2.      A Member State which proposes to apply and applies provisions regulating insurance intermediaries and the sale of insurance products in addition to those set out in this Directive shall ensure that the administrative burden stemming from these provisions is proportionate for consumer protection. The Member State shall continue to monitor these provisions to ensure they remain so.

3.      EIOPA shall present a standardised information sheet for general good rules to be completed by the competent authorities in each Member State. It shall include the hyperlinks to the websites of competent authorities where information on general good rules is published. Such information shall be updated by the national competent authorities on a regular basis and EIOPA shall make this information available on its website in the English, French and German languages, with all national general good rules categorised into different relevant areas of law.

4.      Member States shall establish a single point of contact responsible for providing information on general good rules in their respective Member State. Such a point of contact should be an appropriate competent authority.

5.      EIOPA shall examine in a report and inform the Commission about the general good rules published by Member States as referred to in this Article in the context of the proper functioning of this Directive and the Internal Market before ...* [OJ please insert date: three years after the entry into force of the Directive].

Article 10Competent authorities

1.      Member States shall designate the competent authorities empowered to ensure implementation of this Directive. They shall inform the Commission thereof, indicating any division of those duties.

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.

3.      The competent authorities shall possess all the powers necessary for the performance of their duties. Where there is more than one competent authority on its territory, a Member State shall ensure that those authorities collaborate closely so that they can discharge their respective duties effectively.

Article 11Exchange of information between Member States

1.      The competent authorities of the various Member States shall cooperate in order to ensure the proper application of the provisions of this Directive.

2.      The competent authorities shall exchange information on insurance and reinsurance intermediaries if they have been subject to a penalty referred to in Chapter VIII and such information is likely to lead to removal from the register of such intermediaries. The competent authorities may also exchange any relevant information at the request of an authority.

3.      All persons required to receive or divulge information in connection with this Directive shall be bound by professional secrecy, in the same manner as is laid down in Article 16 of Council Directive 92/49/EEC(22) and Article 15 of Council Directive 92/96/EEC(23).

Article 12Complaints

Member States shall ensure that procedures are set up which allow customers and other interested parties, especially consumer associations, to register complaints about insurance and reinsurance intermediaries and undertakings. In all cases complaints shall receive replies.

Article 13Out-of-court redress

1.      In accordance with Directive .../.../EU of the European Parliament and of the Council (24) and Regulation .../.../EU of the European Parliament and of the Council (25) Member States shall ensure the setting-up of appropriate effective impartial and independent complaints and redress procedures for the out-of-court settlement of disputes between insurance intermediaries and customers, and between insurance undertakings and customers, using existing bodies where appropriate. Member States shall further ensure that all insurance undertakings and insurance intermediaries participate in the procedures for the out-of-court settlement of disputes where the following condition is met:

(a)         the procedure results in decisions which upon explicit and mutual request may be binding for the intermediary or the insurance undertaking, as appropriate, and the client;

2.      Member States shall ensure that these bodies cooperate in the resolution of cross-border disputes.

2a.    Member States shall ensure that insurance intermediaries established on their territories inform consumers about the name, address and website address of the ADR entities by which they are covered and which are competent to deal with potential disputes between themselves and consumers.

2b.    Insurance intermediaries within the Union engaging in online and cross-border online sales shall inform consumers about the ADR platform, if applicable and about their email address. This information shall be made easily, directly, prominently and permanently accessible on the insurance intermediaries' website and if the offer is made by e-mail or another textual message transmitted by electronic means, in that message. It shall include an electronic link to the ADR platform's homepage. Insurance intermediaries shall also inform consumers about the ADR platform when the consumer submits a complaint to the insurance intermediary, a consumer complaint handling system operated by the insurance intermediary or to a company ombudsman.

2c.    Where a customer initiates a procedure for alternative dispute resolution laid down in national law against an insurance intermediary or insurance undertaking with regard to a dispute concerning rights and obligations established under this Directive, the insurance intermediary or insurance undertaking shall be required to participate in that procedure.

2d.    For the purposes of the application of this Directive the competent authorities shall cooperate with each other and with the entities responsible for out-of-court complaint and redress procedures referred to in this Article and to the extent permitted by Union legislative acts in force.

Article 14Restriction on use of intermediaries

Member States shall ensure that, when using the services of the insurance or reinsurance intermediaries established in the Union, insurance and reinsurance undertakings and intermediaries use the insurance and reinsurance mediation services only of registered insurance and reinsurance intermediaries or of the persons referred to in Article 1(2) or of the persons who have fulfilled the declaration procedure referred to in Article 4.

CHAPTER VI

INFORMATION REQUIREMENTS AND CONDUCT OF BUSINESS RULES

Article 15

General principle

1.        Member States shall require that, when carrying out insurance mediation with or for customers, an insurance intermediary or insurance undertaking always acts honestly, fairly, trustworthily, honourably and professionally in accordance with the best interests of its customers.

2.        All information, including marketing communications, addressed by the insurance intermediary or insurance undertaking to customers or potential customers shall be fair, clear and not misleading. Marketing communications shall always be clearly identifiable as such.

Article 16General information provided by the insurance intermediary or insurance undertaking

Member States shall lay down rules ensuring that

(a)       prior to the conclusion of any insurance contract, or if there is any material change in the data in the disclosure to customers related to the intermediary after conclusion of an insurance contract, an insurance intermediary - including tied ones- shall make the following disclosures to customers:

(i)        its identity and address and that it is an insurance intermediary;

(ii)       whether or not it provides any type of advice about the insurance products sold;

(iii)      the procedures referred to in Article 12 allowing customers and other interested parties to register complaints about insurance and reinsurance intermediaries and about the out-of-court complaint and redress procedures referred to in Article 13;

(iv)      the register in which it has been included and the means for verifying that it has been registered; and

(v)       whether the intermediary is representing the customer or is acting for and on behalf of the insurance undertaking;

(b)       prior to the conclusion of any insurance contract, an insurance undertaking shall make the following disclosures to customers:

(i)        its identity and address and that it is an insurance undertaking;

(ii)       whether or not it provides any type of advice about the insurance products sold;

(iii)      the procedures referred to in Article 12 allowing customers and other interested parties to register complaints about insurance undertakings and about the out-of-court complaint and redress procedures referred to in Article 13.

Article 17 Conflicts of interest and transparency

1.        Prior to the conclusion of any insurance contract, an insurance intermediary ▐ shall provide the customer with at least the following information:

(a)       whether it has a holding, direct or indirect, representing more than 10% of the voting rights or of the capital in a given insurance undertaking;

(b)      whether a given insurance undertaking or parent undertaking of a given insurance undertaking has a holding, direct or indirect, representing more than 10% of the voting rights or of the capital in the insurance intermediary;

(c)      in relation to the contract proposed, whether:

(i)        it gives advice on the basis of a fair and personal analysis, or

(ii)        it is under a contractual obligation to conduct insurance mediation business exclusively with one or more insurance undertakings. In that case, it shall provide the names of those insurance undertakings, or

(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 and personal analysis. In that case, it shall provide the names of the insurance undertakings with which it may and does conduct business;

(e)      whether in relation to the insurance contract, it works:

(i)        on the basis of a fee, that is the remuneration paid directly by the customer; or

(ii)        on the basis of a commission of any kind, that is the remuneration included in the insurance premium; or

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

(ea)    whether in relation to the insurance contract, the source of remuneration is:

(i)         the policyholder;

(ii)       the insurance undertaking;

(iii)     another insurance intermediary;

(iv)      a combination of points (i), (ii) and (iii);

Additional information may be required by the Member States in accordance with Article 17a;

2.          The consumer has the right to request additional detailed information as referred to in paragraph 1(e a).

3.          The insurance undertaking, when selling insurance directly to customers, shall inform the customer ▐ whether any variable remuneration is paid to employees for distributing and managing the insurance product in question.

5a.        In cases of conflict of interest and to stimulate fair competition, the consumer shall be provided with information about relevant quantitative elements as regards, the concepts and on the same conditions referred to in the paragraph 1(e a) and paragraph 3 of this Article. In accordance with Article 16 of Regulation (EU) No 1094/2010, EIOPA shall develop, by 31 December 2015 and update periodically, guidelines to ensure consistent application of this Article.

Article 17 a

Disclosure of information

Member States may introduce or retain additional disclosure requirements for insurance mediators and insurance undertakings concerning the amount of remuneration, fees, commissions or non-monetary benefits in relation to the provision of intermediation provided that the Member State upholds a level playing field between all distribution channels, does not distort competition, and complies with Union law, and that the resulting administrative burdens remain proportional to the intended level of consumer protection.

Article 18

Advice, and standards for sales▐

1.        Where advice is provided prior to the conclusion of any specific contract, the insurance intermediary – including tied ones – or insurance undertaking shall specify, on the basis of information provided by the customer:

(a)       the demands and the needs of that customer;

(b)       ▐ the underlying reasons for any advice given to the customer on a specified insurance product▐

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 regardless of the distribution route selected.

3.        When the insurance intermediary or the insurance undertaking gives advice on the basis of fair analysis, it is obliged to give that advice on the basis of a fair analysis of a sufficiently large number of insurance contracts available on the market, to enable it to make a personal recommendation in the best interest of the consumer, in accordance with professional criteria, regarding which insurance contract would most suitable to meet the customer's needs.

4.        Prior to the conclusion of a contract, whether or not advice is given, the insurance intermediary or insurance undertaking shall provide 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 shall be provided in a standardised information sheet by way of a product information document (PID) in plain language. It shall contain at least the following information:

(a)       information about the type of insurance;

(b)       a description of the risks insured and excluded risks;

(c)       the means of payment of premiums and the duration of payments;

(d)       exclusions;

(e)       obligations at the start of the contract;

(f)       obligations during the term of the contract;

(g)       obligations in case of a claim made;

(g)       the term of the contract including start and end date of the contract;

(i)       the means of terminating the contract.

4a.      Paragraph 4 shall not apply to:

(a)       investment products as defined in Article 4a of Regulation .../.../EU of the European Parliament and of the Council(26); or

(b)       the sale of insurance investment products referred to in Chapter VII of this Directive.

Article 19

Information exemptions and flexibility clause

1.          The information referred to in Articles 16, 17 and 18 need not be provided when the insurance intermediary or insurance undertaking mediates in the insurance of large risks, in the case of mediation by reinsurance intermediaries or reinsurance undertakings, or in relation to professional customers as specified in the Annex.

2.          Member States may maintain or adopt stricter provisions regarding the information requirements referred to in Articles 16, 17 and 18 provided that such provisions comply with Union law. Member States shall communicate to EIOPA and the Commission such national provisions.

2a.        Member States which maintain or adopt stricter provisions applying to insurance intermediaries shall ensure that those provisions respect level playing field principles and that the administrative burden stemming from these provisions is proportionate relative to the consumer protection benefits.

3.          In order to establish a high level of transparency by all appropriate means, EIOPA shall ensure that the information it receives relating to national provisions is also communicated to consumers insurance intermediaries and insurance undertakings.

Article 20Information conditions

1.          All information to be provided in accordance with Articles 16, 17 and 18 shall be communicated to the customers:

(a)     on paper;

(b)    in a clear and accurate manner, comprehensible to the customer; and

(c)     in an official language of the Member State in which the risk is situated or the Member State of the commitment or in any other language agreed by the parties. It shall be provided free of charge.

2.          By way of derogation from paragraph 1(a), the information referred to in Articles 16,17 and 18 may be provided to the customer in one of the following media:

(a)     using a durable medium other than paper, where the conditions laid down in paragraph 4 are met; or

(b)    by means of a website where the conditions laid down in paragraph 5 are met.

3.          However, where the information referred to in Articles 16, 17 and 18 is provided using a durable medium other than paper or by means of a website, a paper copy shall be provided to the customer upon request and free of charge.

4.          The information referred to in Articles 16, 17 and 18 may be provided using a durable medium other than paper if the following conditions are met:

(a)     the use of the durable medium is appropriate in the context of the business conducted between the intermediary or insurance undertaking and the customer; and

(b)    the customer has been given the choice between information on paper and in the durable medium, and has chosen that other medium.

5.          The information referred to in Articles 16, 17 and 18 may be provided by the means of a website if it is addressed personally to the customer or if the following conditions are met:

(a)     the provision of the information referred to in Articles 16, 17 and 18 by means of a website is appropriate in the context of the business conducted between the intermediary or insurance undertaking and the customer;

(b)    the customer has consented to the provision of the information referred to in Articles 16, 17 and 18 by means of a website;

(c)     the customer has been notified electronically of the address of the website, and the place on the website where the information referred to in Articles 16, 17 and 18 can be accessed;

(d)    it is ensured that the information referred to in Articles 16, 17 and 18 remains accessible on the website for such period of time as the customer reasonably need to consult it.

6.          For the purposes of paragraph 4 and 5, the provision of information using a durable medium other than paper or by means of a website shall be regarded as appropriate in the context of the business conducted between the intermediary or insurance undertaking and the customer, if there is evidence that the customer has regular access to the Internet. The provision by the customer of an e-mail address for the purposes of that business shall be regarded as such evidence.

7.          In the case of telephone selling, the prior information given to the customer shall be in accordance with Union rules applicable to the distance marketing of consumer financial services. Moreover, after the customer has chosen to obtain information in a medium other than paper in accordance with paragraph 4, information shall be provided to the customer in accordance with paragraph 1 or 2 immediately after the conclusion of the insurance contract.

Article 21a

Tying and bundling practices

1.          When insurance is offered together with another service or ancillary product as part of a package or the same agreement or package, the insurance intermediary or insurance undertaking shall inform and offer the customer the possibility of buying the different components jointly or separately provide for a separate evidence of the premium or prices of each component. This shall not prevent the mediation of insurance products with different levels of insurance coverage or multi insurance risk policies.

2.          Where the risks resulting from such an agreement or package offered to a customer are likely to be different from the risks associated with the components taken separately, the insurance intermediary or insurance undertaking shall, upon the customer’s request, provide an adequate description of the different components of the agreement or package and the way in which its interaction alters the risks.

3.          EIOPA, in cooperation with the European Supervisory Authority (European Banking Authority) ESMA, through the Joint Committee of the European Supervisory Authorities, shall develop by ...* [OJ please insert date: 18 months after the date of entry into force of this Directive], and update periodically, guidelines for the assessment and the supervision of cross-selling practices indicating, in particular, situations in which cross-selling practices do not comply with Article 15(1).

4.          Member States shall ensure that where an insurance intermediary or insurance undertaking provides advice it ensures that the overall package of insurance products meets the demands and needs of the customer.

5.          Member States may maintain or adopt additional stricter measures or intervene on a case-by-case basis to prohibit the sale of insurance together with another service or product as part of a package or as a condition for the same agreement or package when they can demonstrate that such practices are detrimental to consumers.

CHAPTER VII

ADDITIONAL CUSTOMER PROTECTION REQUIREMENTS IN RELATION TO INSURANCE INVESTMENT PRODUCTS

Article 22Scope

This Chapter applies ▌ requirements additional to those referred to in Articles 15, 16, 17 and 18 to insurance mediation activities when they are carried on in relation to the sale of insurance investment based products by the following:

(a)         an insurance intermediary;

(b)         an insurance undertaking.

Article 23Conflicts of interest

1.          Member States shall require insurance intermediaries and insurance undertakings to take all appropriate steps to identify conflicts of interest between themselves, including their managers, employees and tied insurance intermediaries, or any person directly or indirectly linked to them by control and their customers or between one customer and another that arise in the course of carrying out any insurance mediation activities.

2.          Where organisational or administrative arrangements made by the insurance intermediary or insurance undertaking in accordance with Article 15, 16 and 17 are not sufficient to ensure, with reasonable confidence, that risks of damage to customer interests ▐ will be prevented, the insurance intermediary or insurance undertaking shall clearly disclose to the customer the general nature and sources of conflicts of interest, as appropriate, to the customer before undertaking business on its behalf.

2a.        The disclosure referred to in paragraph 2 shall:

(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 insurance mediation activities in the context of which the conflict of interest arises.

3.          The Commission shall be empowered to adopt delegated acts in accordance with Article 33 in order to:

(a)       ▌define the steps ▐ that insurance intermediaries or insurance undertakings might reasonably be expected to take to identify, prevent, manage and disclose conflicts of interest when carrying out insurance mediation activities;

(b)       establish appropriate criteria for determining the types of conflict of interest whose existence may damage the interests of the customers or potential customers of the insurance intermediary or insurance undertaking.

Article 24General principles and information to customers

1.          Member States shall ensure that, when carrying out insurance mediation activities, an insurance intermediary or insurance undertaking 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.

2.          All information, including marketing communications, addressed by the insurance intermediary or insurance undertaking to customers or potential customers shall be fair, clear and not misleading. Marketing communications shall be clearly identifiable as such.

3.          Appropriate information shall be provided to customers or potential customers about the following:

(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 whether the insurance intermediary or insurance undertaking will provide the customer with the on-going assessment of the suitability of the insurance-based investment product recommended to customers;

(b)       insurance-based investment products and proposed investment strategies: this should include appropriate guidance on and warnings of the risks associated with investments in those instruments or in respect of particular investment strategies; ▐

(c)       costs and associated charges, including the amount of remuneration from third parties to the insurance intermediary or insurance undertaking, where applicable.

4.          The information referred to in paragraphs 2 and 3 should be provided in a comprehensible form in such a manner that customers or potential customers are reasonably able to understand the nature and risks of the specific type of insurance-based investment product that is being offered and, consequently, to take investment decisions on an informed basis. This information may be provided in a standardised format in accordance with Article 18(4).

5.          Member States shall require that when the insurance intermediary or insurance undertaking informs the customer that insurance advice is provided on an independent basis the insurance intermediary or insurance undertaking shall disclose to the customer the nature of the remuneration received in relation to the insurance contract:

(a)       the range of insurance products on which the recommendation will be based and, in particular, whether the range is limited to insurance products issued or provided by entities having close links with the intermediary who represents the customer;

(b)       whether a fee is payable by the customer for the advice; and

(ba)     whether the insurance intermediary receives any fees or commissions from third parties in relation to the insurance contract.

5a.        Member States may additionally prohibit or further restrict the offer or acceptance of fees, commissions or non-monetary benefits from third parties in relation to the provision of insurance advice. That may include requiring any such fees, commissions or non-monetary benefits to be returned to the clients or offset against fees paid by the client.

Member States may further require that where an intermediary informs the client that advice is given independently, the intermediary shall assess a sufficiently large number of insurance products available on the market which are sufficiently diversified with regard to their type and issuers or product providers to ensure that the client's objectives can be suitably met and shall not be limited to insurance products issued or provided by entities having close links with the ▐ intermediary▐.

6.          EIOPA shall develop by ...* [OJ please insert date: 18 months after the date of entry into force of this Directive], 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 in paragraph 1.

             ▐

7.          The Commission shall be empowered to adopt delegated acts in accordance with Article 33 to specify the principles with which insurance intermediaries and insurance undertakings must comply ▌when carrying out insurance mediation activities with their customers. Those delegated acts shall take into account:

(a)       the nature of the services offered or provided to the customer or potential customer, taking into account the type, object, size and frequency of the transactions;

(b)       the nature of the products being offered or considered including different types of insurance-based investment products;

Article 25Assessment of suitability and appropriateness and reporting to customers

1.          When providing advice the insurance intermediary or insurance undertaking shall obtain the necessary information regarding the customer's or potential customer's knowledge and experience in the investment field relevant to the specific type of product▐, the customer's or potential customer's financial situation and ▌investment objectives so as to enable the insurance intermediary or insurance undertaking to recommend to the customer or potential customer the insurance mediation activities or insurance-based investment products that are suitable for the customer or potential customer.

2.          Member States shall ensure that insurance intermediaries and insurance undertakings, when carrying out insurance mediation activities other than those referred to in paragraph 1, ask the customer or potential customer to provide information regarding his knowledge and experience in the investment field relevant to the specific type of insurance-based investment product ▐ offered or demanded so as to enable the insurance intermediary or insurance undertaking to assess whether the insurance mediation activity or insurance-based product envisaged is appropriate for the customer.

Where the insurance intermediary or insurance undertaking considers, on the basis of the information received under the previous subparagraph, that the insurance-based investment product ▐ 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.

Where customers or potential customers do not provide the information referred to under the first subparagraph, or where they provide insufficient information regarding their knowledge and experience, the insurance intermediary or insurance undertaking shall warn them that they are not in a position to determine whether the insurance-based investment product envisaged is appropriate for them. This warning may be provided in a standardised format.

2a.        Member States shall allow insurance intermediaries or insurance undertakings when carrying out insurance mediation activities that consist only of executing customer orders, to provide those activities to their customers without the need to obtain the information or make the determination provided for in paragraph 2 where all the following conditions are met:

(a)    the activities refer to either of the following insurance-based investment products:

(i)       contracts which only provide investment exposure to the financial instruments deemed non-complex under Directive .../.../EU [MiFID] and do not incorporate a structure which makes it difficult for the customer to understand the risks involved; or

(ii)      other non-complex insurance-based investments for the purpose of this paragraph;

(b)    the insurance mediation activity is carried out at the initiative of the customer or potential customer;

(c)     the customer or potential customer has been clearly informed, whether or not in a standardised format, that in the provision of this insurance mediation activity, the insurance intermediary or insurance undertaking is not required to assess the appropriateness of the insurance-based investment product or insurance mediation activity provided or offered and that the customer or potential customer does not benefit from the corresponding protection of the relevant conduct of business rules;

(d)    the insurance intermediary or insurance undertaking complies with its obligations under Article 23.

3.          The insurance intermediary or insurance undertaking shall establish a record that includes the document or documents ▐ agreed between itself and the customer that set out the rights and obligations of the parties, and the other terms on which the insurance intermediary or insurance undertaking will carry out insurance mediation activities for the customer. The rights and duties of the parties to the contract may be incorporated by reference to other documents or legal texts.

4.          The ▐ insurance intermediary or insurance undertaking shall provide the customer with adequate reports on the insurance mediation activity provided ▐. These reports shall include periodic communications to customers, taking into account the type and the complexity of insurance-based investment products involved and the nature of the insurance mediation activity carried out for the customer and shall include, where applicable, the costs associated with the activities undertaken on behalf of the customer. ▐

When providing advice, the insurance intermediary or insurance undertaking shall, before the insurance-based investment product is arranged with the customer, provide the customer with a statement in a durable medium on suitability specifying the advice given and how that advice meets the preferences, objectives and other characteristics of the customer.

Where the agreement is concluded using a means of distance communication which prevents the prior delivery of the suitability assessment, the insurance intermediary or insurance undertaking can provide the written statement on suitability in a durable medium immediately after the customer is bound by any agreement.

5.          The Commission shall be empowered to adopt delegated acts in accordance with Article 33 to specify the principles with which insurance intermediaries and insurance undertakings must comply ▌when carrying out insurance mediation activities to their customers. Those delegated acts shall take into account:

(a)     the nature of the services offered or provided to the customer or potential customer, taking into account the type, object, size and frequency of the transactions;

(b)    the nature of the products being offered or considered, including different types of financial instruments and banking deposits referred to in Article 1(2) of Directive .../.../EU [MiFID];

(ba)  the retail or professional nature of the customer or potential customer.

5a.        EIOPA shall develop by ...* [OJ please insert date: 18 months after the date of entry into force of this Directive], and update periodically, guidelines for the assessment of insurance-based investment products incorporating a structure which makes it difficult for the customer to understand the risk involved in accordance with paragraph 3(a).

CHAPTER VIII

PENALTIES AND OTHER MEASURES

Article 26Administrative

penalties and other measures

1.          Member States shall ensure that their administrative penalties and other measures are effective, proportionate and dissuasive.

2.          Member States shall ensure that where obligations apply to insurance or reinsurance undertakings or insurance or reinsurance intermediaries, in case of a breach, administrative penalties and other measures can be applied to the members of their management body, and any other natural or legal persons who, under national law, are responsible for a breach.

3.          The competent authorities shall be given all investigatory powers that are necessary for the exercise of their functions. In the exercise of their [...] powers to impose penalties, the competent authorities shall cooperate closely to ensure that penalties or other measures produce the desired results and coordinate their action when dealing with cross border cases, while ensuring that conditions are met for legitimate data processing in accordance with Directive 95/46/EC and Regulation (EC) No 45/2001. The competent authorities may request documents or other information under a formal decision, which shall indicate the legal basis for the request for information, the deadline for compliance and the right of the recipient to seek a judicial review of the decision.

Article 26aSpecific

penalties

1.        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.

2.        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 3 and 4 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.

3.        EIOPA shall take a decision under paragraph 2 only 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 law 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 2 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.

4.        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 2 without issuing the opinion provided for in Article 33.

5.        Before deciding to take any action under this Article, EIOPA shall notify competent authorities of the action it proposes.

6.        Before taking a decision under paragraph 2, 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.

7.        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 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.

8.        EIOPA shall review a prohibition or restriction imposed under paragraph 2 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.

9.        Action adopted by EIOPA under this Article shall prevail over any previous action taken by a competent authority.

10.      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 3(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.

Article 27Publication of

penalties

Member States shall provide that the competent authority publishes any penalty or other measure that has been imposed for breaches of the provisions of the national provisions adopted in the implementation of this Directive ▐ including information on the type and nature of the breach and the identity of persons responsible for it, only if the penalty or other measure has become final and is not subject to appeal or judicial review. Where the publication would cause a disproportionate damage to the parties involved, the competent authorities shall publish the penalties on an anonymous basis.

Article 28Breaches

1.        This article shall apply to the following:

(a)      an insurance or reinsurance intermediary who is not registered in a Member State and who does not fall within Article 1(2) or Article 4;

(b)      a person providing ancillary insurance activities without having submitted a declaration as laid down in Article 4, or who has submitted such a declaration but in respect of whom the requirements set out in Article 4 are not met;

(c)      an insurance or reinsurance undertaking or insurance or reinsurance intermediary using the insurance or reinsurance mediation services of persons who are neither registered in a Member State nor referred to in Article 1(2), and who have not submitted a declaration under Article 4;

(d)      an insurance or reinsurance intermediary having obtained a registration through false statements or any other irregular means in breach of Article 3;

(e)      an insurance or reinsurance intermediary or insurance undertaking failing to meet the provisions of Article 8;

(f)       an insurance undertaking or insurance or reinsurance intermediary failing to comply with conduct of business requirements in accordance with Chapter VI and VII.

2.        Member States shall ensure that in the cases referred to in paragraph 1, the administrative penalties and other measures that can be applied include at least the following:

(a)      a public statement, which indicates the natural or legal person and the nature of the breach;

(b)      an order requiring the natural or legal person to cease the conduct and to desist from a repetition of that conduct;

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

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

(e)      in case of a legal person, administrative pecuniary penalties of up to 10 % of the total annual turnover of the legal person in the preceding business year; where the legal person is a subsidiary of a parent undertaking, the relevant total annual turnover shall be the total annual turnover resulting from the consolidated accounts of the ultimate parent undertaking in the preceding business year;

(f)       in case of a natural person, administrative pecuniary penalties of up to 5 000 000 EUR, or in the Member States where the Euro is not the official currency, the corresponding value in the national currency on the date of entry into force of this Directive; and

Where the benefit derived from the breach can be determined, Member States shall ensure that the maximum level is no lower than twice the amount of that benefit.

Article 29Effective application of

penalties

1.        Member States shall ensure that when determining the type of administrative penalties or other measures and the level of administrative pecuniary penalties, the competent authorities shall take into account all relevant circumstances, including, where appropriate:

(a)      the gravity and the duration of the breach;

(b)      the degree of responsibility of the responsible natural or legal person;

(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;

(d)      the importance of profits gained or losses avoided by the responsible natural or legal person, insofar as they can be determined;

(e)      the losses for third parties caused by the breach, insofar as they can be determined;

(f)       the level of cooperation of the responsible natural or legal person with the competent authority; and

(g)      previous breaches by the responsible natural or legal person.

3.          This Directive shall not affect the power of the host Member States to take appropriate measures to prevent or to penalise irregularities committed within their territories which are contrary to legal or regulatory provisions adopted in the interest of the general good. This shall include the possibility of preventing offending insurance or reinsurance intermediaries from initiating any further activities within their territories.▐

Article 30Reporting of breaches

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.

2.          Those arrangements shall include at least:

(a)     specific procedures for the receipt of reports and their follow-up;

(b)    appropriate protection, including anonymity where appropriate, for those who report the commission of breaches committed within them; and

(c)    protection of personal data concerning both the person who reports the breaches and the natural person who is allegedly responsible for a breach, in compliance with the principles laid down in Directive 95/46/EC.

The identity of the persons reporting and allegedly responsible for the breach shall remain confidential at every stage, unless the disclosure thereof is required under national law for the purpose of subsequent inquiries or legal proceedings.

Article 31Submitting information to EIOPA in relation to

penalties

1.          Member States shall provide EIOPA annually with aggregated information regarding all administrative measures or administrative penalties imposed in accordance with Article 26.

Competent authorities shall provide EIOPA annually with aggregated information regarding all administrative measures or administrative penalties imposed in accordance with Article 26.

2.          Where the competent authority has disclosed an administrative measure or administrative penalty to the public, it shall contemporaneously report that fact to EIOPA.

3.          EIOPA shall develop draft implementing technical standards on procedures and forms for submitting information as referred to in this Article.

EIOPA shall submit those draft implementing technical standards to the Commission by ...*[OJ please insert date: six months after entry into force of this Directive].

Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1094/2010.

CHAPTER IX

FINAL PROVISIONS

Article 32Data Protection

1.          Member States shall apply Directive 95/46/EC to the processing of personal data carried out in the Member States pursuant to this Directive.

2.          Regulation (EC) No 45/2001 shall apply to the processing of personal data carried out by EIOPA pursuant to this Directive.

Article 33Delegated acts

The Commission shall be empowered to adopt delegated acts in accordance with Article 34 concerning Articles ▐ 23, 24 and 25.

Article 34Exercise of the delegation

1.          The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2.          The power to adopt delegated acts referred to in Articles ▐ 23, 24 and 25 shall be conferred on the Commission for an indeterminate period of time from the date of entry into force of this Directive.

3.          The delegation of powers referred to in Articles ▐ 23, 24 and 25 may be revoked at any time by the European Parliament or by the Council. A decision of revocation shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4.          As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

5.          A delegated act adopted pursuant to Articles ▐ 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 three 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 three months at the initiative of the European Parliament or the Council.

Article 34aFurther provisions for draft regulatory technical standards

1.          Notwithstanding any time limit provided for the submission of draft regulatory technical standards to the Commission, the Commission shall submit its drafts in intervals of of 12, 18 or 24 months.

2.          The Commission shall not adopt regulatory technical standards where the scrutiny time of the European Parliament is reduced to less than two months, including any extension, because of recess.

3.          The European Supervisory Authorities may consult the European Parliament during the drafting stages of the regulatory technical standards, particularly where there are concerns regarding the scope of this Directive.

4.          Where the competent committee of the European Parliament has rejected regulatory technical standards and there are less than two weeks before the following plenary part-session, the European Parliament may extend its time for scrutiny until the plenary part-session thereafter.

5.          Where regulatory technical standards have been rejected and the identified issues are of limited scope, the Commission may adopt an expedited timetable for delivering a revised draft regulatory technical standard.

6.          The Commission shall ensure that all queries of the European Parliament that are formally raised formally via the Chair of the competent committee are answered promptly before the adoption of the draft regulatory technical standards.

Article 35Review and evaluation

1.          By ...* [OJ please insert date: five years after the date of entry into force of this Directive.], the Commission shall review ▐ 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 .../.../EU [on key information documents for investment products] and Directive .../.../EU [MIFID II]. ▐ This examination 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.

2.          After consulting the Joint Committee of European Supervisory Authorities, the Commission shall submit its findings to the European Parliament and to the Council.

5.          The Commission shall examine whether the competent authorities referred to in Article 10(1) are sufficiently empowered and have adequate resources to carry out their tasks.

Article 36Transposition

1.          Member States shall adopt and publish, by …*[OJ please insert date: 18 months after the date of entry into force of this Directive], the laws, regulations and administrative provisions necessary to comply with this Directive. They shall forthwith communicate to the Commission the text of those measures.

Where the documents accompanying notification of transposition measures provided by the Member States are not sufficient to assess fully the compliance of those measures with certain provisions of this Directive, the Commission may, upon EIOPA's request and with a view to carrying out its tasks under Regulation (EU) No 1094/2010, or on its own initiative, require Member States to provide more detailed information regarding the transposition of this Directive and the implementation of those measures.

1a.        Member States shall apply the measures referred to in paragraph 1 from …* [OJ please insert date: 18 months after the date of entry into force of this Directive].

When Member States adopt those measures, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. They shall also include a statement that references in existing laws, regulations and administrative provisions to the directive repealed by this Directive shall be construed as references to this Directive. Member States shall determine how such reference is to be made and how that statement is to be formulated.

2.          Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by this Directive.

Article 37Repeal

Directive 2002/92/EC is repealed with effect from ...* [OJ please insert date: 18 months after the date of entry into force of this Directive.], without prejudice to obligations of the Member States relating to the time-limit for transposition into national law of that Directive.

References to the repealed Directive shall be construed as references to this Directive.

Article38Entry into force

This Directive shall enter into force on the twentieth day of that of its publication in the Official Journal of the European Union.

Article 39Addressees

This Directive is addressed to the Member States.

Done at ...,

For the European Parliament                      For the Council

ANNEX I PROFESSIONAL CUSTOMERS

A professional customer is a customer who possesses the experience, knowledge and expertise to make his own decisions and properly assess the risks that he incurs. The following should all be regarded as professionals in all insurance services and activities and insurance products for the purposes of the Directive.

1.          Insurance and reinsurance undertakings;

1a.        Insurance and reinsurance intermediaries.

2.          Large undertakings meeting two of the following size requirements on a company basis:

–       balance sheet total: EUR 20,000,000

–       net turnover: EUR 40,000,000

–       own funds: EUR 2,000,000.

3.          National ▐ governments▐.

ANNEX IIEXPLANATORY DOCUMENTS

In accordance with the Joint Political Declaration of Member States and the Commission on explanatory documents of 28 September 2011, Member States have undertaken to accompany, in justified cases, the notification of their transposition measures with one or more documents explaining the relationship between the components of a directive and the corresponding parts of national transposition instruments.

With regard to this Directive, the Commission considers the transmission of such documents to be justified for the following reasons:

Complexity of the Directive and of the sector concerned:

The field of insurance and distribution of insurance products is particularly complicated and can be very technical from the point of view of professionals who are not specialised in it. In the absence of well-structured explanatory documents, the task of overseeing the transposition would be disproportionately time-consuming. The current proposal represents a review where the text of the Insurance Mediation Directives (IMD) was recasted. Even though many of the provisions have not changed as to their substance, a number of new provisions have been introduced, and a number of existing provisions have been revised or deleted. The structure, form, and presentation of the texts are completely new. The new structure has been necessary to give a clearer and more logical order to the legal provisions but it will result in the need for a structured approach during the transposition supervision.

Some of the provisions of the proposed Directive may potentially have an impact on a number of areas of the national legal order such as the company, commercial or tax law or other legislative areas in the Member States. It may also affect secondary national law including Acts and general conduct of business rules for Financial or Insurance Intermediaries. The interrelation of matters with all these neighbouring fields may mean, depending on the system in the Member States, that some provisions are implemented by means of new or already existing rules from those fields, a clear view of which should be available.

Consistency and interrelation with other initiatives:

The current proposal is tabled for adoption as part of a 'Consumer Retail Package' together with the PRIPs proposal on product disclosures (Regulation on key information documents on investment products and amending Directives 2003/71/EC and 2009/65/EC) and UCITS V. The PRIPs initiative aims at ensuring a coherent horizontal approach to product disclosure with regard to investment products and insurance products with investment elements (so-called insurance investments), and provisions on selling practices will be included in the revisions of the IMD and MiFID (Markets in Financial Instruments Directive). The proposal is furthermore consistent with, and complementary to, other EU legislation and policies, particularly in the areas of consumer protection, investor protection and prudential supervision, such as Solvency II (Directive 2009/138/EC), MiFID II (the recast of MiFID), and the above mentioned PRIPs initiative.

The new IMD would continue to have the features of a "minimum harmonisation" legal instrument. This means that Member States may decide to go further if necessary for the purposes of consumer protection. However, the minimum standards of IMD will be raised significantly. ▐ Moreover, a revision clause is considered in the directive and, in order to be able to collect all relevant information on the functioning of those rules, the Commission will need to be able to monitor their implementation from the outset.

Chapter on insurance investment: The text of the proposal features a Chapter introducing additional customer protection requirements in relation to insurance investment products.

There is a strong political will to put such provisions in place but, at the same time, there is very little experience as this is a new area. Therefore, it is of high importance that the Commission receives transposition documents on how the Member States have given effect to such provisions.

The specificities of non-life insurance products must however be taken into account in the Level 2 guidelines. In line with the analogous principle in MIFID II Article 3, there should be considered an analogous regime for insurances when implementing the Directive at national level and in the joint committee's guidelines. Persons carrying out insurance mediation in relation to insurance investment products should comply with the conduct standards applicable to all insurance contracts as well as to the enhanced standards applicable to insurance investment products. Anyone intermediating in insurance investment products must be registered as an insurance intermediary.

Low estimated additional administrative burden stemming from requesting explanatory documents from Member States: As mentioned above, the current text has been in place since 2002 (when the original Directive was adopted). Therefore, it will not be burdensome for Member States to notify their implementing provisions as they have normally been notifying most of them for quite some time already. The estimated low additional administrative burden of requesting explanatory documents from Member States regarding the new parts of the Directive is proportionate and necessary for the Commission to carry out its task of overseeing the application of Union law.

On the basis of the above, the Commission believes that the requirement to provide explanatory documents in the case of the proposed Directive is proportionate and does not go beyond what is necessary to achieve the objective to carry out efficiently the task of overseeing accurate transposition.

(1)

         OJ C 77, 28.3.2002, p. 1.

(2)

         OJ C 33 E, 5.3.2013, p. 328.

(3)

         Texts adopted, P7_TA(2012)0049.

(4)

*          Amendments: new or amended text is highlighted in bold italics; deletions are indicated by the symbol ▌.

(5)

         Directive 2002/92/EC of the European Parliament and the Council of 9 December 2002 on insurance mediation (OJ L 9, 15.1.2003, p. 3).

(6)

         Directive 2014/.../EU of the European Parliament and of the Council on markets in financial instruments repealing Directive 2004/39/EC (OJ ...)

(7)

         Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC (OJ L 331, 15.12.2010, p. 48).

(8)

         Directive 2013/11/EU of the European Parliament and of the Council on alternative dispute resolution for consumer disputes and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC (OJ L 165, 18.6.2013, p. 63).

(9)

         Directive 2000/31/EC of the European Parliament and of the Council of 8 June 2000 on certain legal aspects of information society services, in particular electronic commerce, in the Internal Market ('Erective on electronic commerce') (OJ L 178, 17.7.2000, p. 1).

(10)

         Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84).

(11)

         Directive 95/46 of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data, under the supervision of the Member States competent authorities, in particular the public independent authorities designated by the Member States (OJ L 281, 23.11.1995, p. 31).

(12)

         Regulation (EU) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the EU institutions and bodies and on the free movement of such data (OJ L 8, 12.1.2001, p. 1).

(13)

        OJ C 369, 17.12.2011, p. 14.

(14)

        Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision (OJ L 235, 23.9.2003).

(15)

        Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.209).

(16)

        Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (OJ L 302, 17.11.2009).

(17)

        First Council Directive 73/239/EEC of 24 July 1973 on the coordination of laws, regulations and administrative provisions relating to the taking-up and pursuit of the business of direct insurance other than life assurance (OJ L 228, 16.8.1973, p. 3).

(18)

        Directive 2002/83/EC of the European Parliament and of the Council of 5 November 2002 concerning life assurance (OJ L 345, 19.2.2002, p. 1).

(19)

        Directive 2005/68/EC of the European Parliament and of the Council of 16 November 2005 on reinsurance and amending Council Directives 73/239/EEC, 92/49/EEC as well as Directives 98/78/EC and 2002/83/EC (OJ L 323, 9.12.2005, p. 1).

(20)

        Directive 2005/36/EC of the European Parliament and of the Council of 7 September 2005 on the recognition of professional qualifications (OJ L 255, 30.9.2005, p. 22).

(21)

        Recommendation of the European Parliament and of the Council of 23 April 2008 on the establishment of the European Qualifications Framework for lifelong learning (OJ C 111, 6.5.2008, p.1).

(22)

        Council Directive 92/49/EEC of 18 June 1992 on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and amending Directives 73/239/EEC and 88/357/EEC (third non-life insurance Directive) (OJ L 228, 11.8.1992, p. 1).

(23)

        Council Directive 92/96/EEC of 10 November 1992 on the coordination of laws, regulations and administrative provisions relating to direct life assurance and amending Directives 79/267/EEC and 90/619/EEC (third life assurance Directive) (OJ L 360, 9.12.1992, p. 1).

(24)

  Directive .../.../EU of the European Parliament and of the Council of ... on alternative dispute resolution for consumer disputes and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC (Directive on consumer ADR) (OJ ...).

(25)

  Regulation .../.../EU of the European Parliament and of the Council of ... on online dispute resolution for consumer disputes (Regulation on consumer ODR) (OJ ...).

(26)

        Regulation .../.../EU of the European Parliament and of the Council on key information documents for investment products (OJ ...).


ANNEX: LETTER FROM THE COMMITTEE ON LEGAL AFFAIRS

Ref.: D(2012)57300

Ms Sharon Bowles

Chair of the Economic and Monetary Affairs Committee

ASP 10G201

Brussels

Subject:     Proposal for a directive of the European Parliament and of the Council on insurance mediation (recast)

                  (COM(2012)0360 – C7-0180/2012 – 2012/0175(COD))

Dear Chairman,

The Committee on Legal Affairs, which I am honoured to chair, has examined the proposal referred to above, pursuant to Rule 87 on Recasting, as introduced into the Parliament's Rules of Procedure.

Paragraph 3 of that Rule reads as follows:

"If the committee responsible for legal affairs considers that the proposal does not entail any substantive changes other than those identified as such in the proposal, it shall inform the committee responsible.

In such a case, over and above the conditions laid down in Rules 156 and 157, amendments shall be admissible within the committee responsible only if they concern those parts of the proposal which contain changes.

However, if in accordance with point 8 of the Interinstitutional Agreement, the committee responsible intends also to submit amendments to the codified parts of the proposal, it shall immediately notify its intention to the Council and to the Commission, and the latter should inform the committee, prior to the vote pursuant to Rule 54, of its position on the amendments and whether or not it intends to withdraw the recast proposal."

Following the opinion of the Legal Service, whose representatives participated in the meetings of the Consultative Working Party examining the recast proposal, and in keeping with the recommendations of the draftsperson, the Committee on Legal Affairs considers that the proposal in question does not include any substantive changes other than those identified as such in the proposal and that, as regards the codification of the unchanged provisions of the earlier acts with those changes, the proposal contains a straightforward codification of the existing texts, without any change in their substance.

In conclusion, after discussing it at its meeting of 6 November 2012, the Committee on Legal Affairs, by 23 votes in favour and no abstentions(1), recommends that your Committee, as the committee responsible, proceed to examine the above proposal in accordance with Rule 87.

Yours faithfully,

Klaus-Heiner LEHNE

Encl.: Opinion of the Consultative Working Party

(1)

Luigi Berlinguer, Françoise Castex, Christian Engström, Marielle Gallo, Giuseppe Gargani, Lidia Joanna Geringer de Oedenberg, Sylvie Guillaume, Sajjad Karim, Eva Lichtenberger, Antonio López-Istúriz White, Antonio Masip Hidalgo, Jiří Maštálka, Alajos Mészáros, Evelyn Regner, Francesco Enrico Speroni, .József Szájer, Rebecca Taylor, Alexandra Thein, Axel Voss, Rainer Wieland, Cecilia Wikström, Zbigniew Ziobro, Tadeusz Zwiefka.


ANNEX: OPINION OF THE CONSULTATIVE WORKING PARTY OF THE LEGAL SERVICES OF THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COMMISSION

 

 

 

CONSULTATIVE WORKING PARTY

OF THE LEGAL SERVICES

Brussels, 11 September 2012

OPINION

             FOR THE ATTENTION OF THE EUROPEAN PARLIAMENT

                                                              THE COUNCIL

                                                              THE COMMISSION

Proposal for a directive of the European Parliament and of the Council on insurance mediation

COM(2012)360 of 3.7.2012 – 2012/0175(COD)

Having regard to the Inter-institutional Agreement of 28 November 2001 on a more structured use of the recasting technique for legal acts, and in particular to point 9 thereof, the Consultative Working Party consisting of the respective legal services of the European Parliament, the Council and the Commission met on 23 July 2012 for the purpose of examining, among others, the aforementioned proposal submitted by the Commission.

At that meeting(1), an examination of the proposal for a directive of the European Parliament and of the Council recasting Directive 2002/92/EC of the European Parliament and of the Council of 9 December 2002 on insurance mediation resulted in the Consultative Working Party’s establishing, by common accord, as follows:

1) As far as the explanatory memorandum is concerned, in order to be drafted in full compliance with the relevant requirements laid down by the Inter-institutional Agreement such a document should have specified which provisions of the earlier act remain unchanged in the proposal, as is provided for under point 6(a)(iii) of that agreement.

2) In the draft recast text, the following proposed changes should have been identified with the grey-shaded type generally used for marking substantive changes:

- in Article 1(2)(e), the deletion of the words "or service";

- in Article 1(2)(f), the replacement of the figure "500" with "600";

- in Article 8(3), the replacement of the figure "1000000" with "1,120,000", and that of the figure "1500000" with "1,680,000";

- in Article 8(4)(b), the replacement of the figure "15000" with "16800";

- in Article 13(1), introductory wording, the replacement of the word "encourage" with "ensure";

- in Article 13(2), the replacement of the words "encourage these bodies to cooperate" with the words "ensure that these bodies cooperate";

- in Article 17(1)(c)(ii), the deletion of the words "at the customer's request".

3) The existing wordings of point 11 of Article 2 and of paragraph 2 of Article 13 of Directive 2002/92/EC should have been present in the draft recast text, and should have been identified by using the sign composed of a double strikethrough and a grey-shaded type which is generally used for marking substantive changes consisting of deletions of existing texts.

4) In order to comply with all the requirements laid down in point 7(b) of the Inter-institutional Agreement, the wording of the second paragraph of Article 37 should be completed with the final words "and shall be read in accordance with the correlation table in Annex III" and a correlation table should be annexed to the recast act as a new Annex III.

In consequence, examination of the proposal has enabled the Consultative Working Party to conclude, without dissent, that the proposal does not comprise any substantive amendments other than those identified as such therein or in the present opinion. The Working Party also concluded, as regards the codification of the unchanged provisions of the earlier act with those substantive amendments, that the proposal contains a straightforward codification of the existing text, without any change in its substance.

C. PENNERA                                  H. LEGAL                            L. ROMERO REQUENA

Jurisconsult                                       Jurisconsult                            Director General

(1)

The Consultative Working Party had at its disposal the English, French and German language versions of the proposal and worked on the basis of the English version, being the master-copy language version of the text under discussion.


OPINION of the Committee on the Internal Market and Consumer Protection (30.4.2013)

for the Committee on Economic and Monetary Affairs

on the proposal for a directive of the European Parliament and of the Council on insurance mediation (recast)

(COM(2012)0360 – C7-0180/2012 – 2012/0175(COD))

Rapporteur: Catherine Stihler

SHORT JUSTIFICATION

The collapse in consumer confidence since the financial crisis extends further than retail banking, to the sale of insurance products. Insurance mediators are valuable assets to the sector, bringing a depth of knowledge that consumers have become reliant upon. This reliance brings with it risks, and has exposed a number of shortcomings which this revision seeks to address. IMD I set a benchmark for protecting consumers and clarifying what responsibilities Member States must take, designed to ensure a high level of professionalism and competence among insurance intermediaries. Since then, when Parliament was working on Solvency II there were indications of potential market failure in respect of insurance brokerage and Parliament called for a review of IMD I. To assist with the revision, PWC conducted a study(1), and an impact assessment(2) was commissioned.

The recast Commission proposal is a good starting point. Insurance products are exceptionally complicated for consumers who do not deal with contracts regularly. Insurance plays an important role at times when consumers are at their most vulnerable and in need and rely on intermediaries following clear and fair rules. It therefore falls to European legislators to ensure that the shortcomings from IMD I and those exposed by the global financial crisis are addressed.

That's why, in my opinion, I want to draw focus to the following areas for the lead Committee on Economic and Monetary Affairs:

- Tying and bundling have been clarified so that the products which European consumers value highly are explicitly protected, whilst poor selling practices will cease to operate. Tying will not be allowed because it has been abused in the past and the benefits to consumers are not significant enough to justify the risk.

- Remuneration rules have been reformed so that the best interest of the consumer is always what motivates the mediator's advice. Thresholds on claims and targets for sales of particular contracts will no longer be a factor that consumers have to consider. The burden of disclosure will fall on the intermediary to voluntarily disclose rather than the consumer having to make a request.

- Geographical scope is clearer to allow sales between intermediaries registered within the single market, and those outside the internal market. The objective is to give legal clarity, avoiding unnecessary doubt.

- The scope of the directive has been extended so that price comparison websites have increased duties, putting them in line with office based intermediaries.

AMENDMENTS

The Committee on the Internal Market and Consumer Protection calls on the Committee on Economic and Monetary Affairs, as the committee responsible, to incorporate the following amendments in its report:

Amendment  1

Proposal for a directive

Recital 28

Text proposed by the Commission

Amendment

(28) There is a need for suitable, appropriate and 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 a 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 prejudice the rights of the parties to such procedures to bring legal proceedings before courts.

(28) There is a need for appropriate and 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 and Directives 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. This should be in accordance with the Directive 2013/.../EU of the European Parliament and of the Council of ... [on alternative dispute resolution for consumer disputes]1 and Regulation 2013/.../EU of the European Parliament and of the Council of ... [on online dispute resolution for consumer disputes]2.

 

 

_____________

 

1 OJ L ...

2 OJ L ...

 

Amendment  2

Proposal for a directive

Recital 30

Text proposed by the Commission

Amendment

(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.

(30) Consumers should be provided in advance with clear information about the status of the persons who sell the insurance product and whether they are being given personal advice. 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 of the intermediaries' remuneration.

Justification

See justification for Article 17.

Amendment  3

Proposal for a directive

Recital 40

Text proposed by the Commission

Amendment

(40) This Directive should specify the minimum obligations which insurance undertakings and insurance intermediaries should have in providing information to customers. A Member State should be able to in this area maintain or adopt more stringent provisions of their home Member State where they are pursuing insurance mediation activities on its territory provided that any such more stringent provisions comply with Union law, including Directive 2000/31/EC of the European Parliament and of the Council of 8 June 2000 on certain legal aspects of information society services, in particular electronic commerce, in the Internal Market (Directive on electronic commerce). A Member State which proposes to apply and applies provisions regulating insurance intermediaries and the sale of insurance products in addition to those set out in this Directive should ensure that the administrative burden stemming from these provisions is proportionate for consumer protection. In the interest of consumer protection and in order to prevent mis-selling of insurance products, Member States should be permitted to apply exceptionally the more stringent requirements to such insurance intermediaries conducting insurance mediation on an ancillary basis if they consider it necessary and proportionate.

(40) This Directive should specify the minimum obligations which insurance undertakings and insurance intermediaries should have in providing information to customers. A Member State should be able to in this area maintain or adopt more stringent provisions of their home Member State where they are pursuing insurance mediation activities on its territory provided that any such more stringent provisions comply with Union law, including Directive 2000/31/EC of the European Parliament and of the Council of 8 June 2000 on certain legal aspects of information society services, in particular electronic commerce, in the Internal Market (Directive on electronic commerce). A Member State which proposes to apply and applies provisions regulating insurance intermediaries and the sale of insurance products in addition to those set out in this Directive should ensure that the administrative burden stemming from these provisions is proportionate for consumer protection. In the interest of consumer protection and in order to prevent mis-selling of insurance products, Member States should be permitted to apply the more stringent requirements to such insurance intermediaries conducting insurance mediation on an ancillary basis if they consider it necessary and proportionate.

Justification

Member States should be allowed to apply more stringent rules where they see fit, due to the heterogeneously structured European insurance market.

Amendment  4

Proposal for a directive

Article 1 – paragraph 1

Text proposed by the Commission

Amendment

1. This Directive lays down rules concerning the taking-up and pursuit of the activities of insurance and reinsurance mediation, including professional management of claims and loss adjusting, by natural and legal persons which are established in a Member State or which wish to be established there.

1. This Directive lays down rules concerning the taking-up and pursuit of the activities of insurance and reinsurance mediation, by natural and legal persons which are established in a Member State or which wish to be established there.

Justification

Extending the scope to include loss adjustment and expert services causes serious concern because it introduces into the distribution of insurance products a fresh series of occupations which are not, by their professional nature, relevant to the activity which is being regulated.

Amendment  5

Proposal for a directive

Article 1 – paragraph 2 – point f

Text proposed by the Commission

Amendment

(f) the amount of the annual premium for the insurance contract, when pro-rated to produce an annual amount, does not exceed EUR 600.

(f) the amount of the annual premium for the insurance contract, when pro-rated to produce an annual amount, does not exceed EUR 600.

 

EIOPA shall review the amount referred to in point (f) of paragraph 2 regularly in order to take account of changes in the European Index of Consumer Prices as published by Eurostat. The first review shall take place five years after the entry into force of this Directive and the successive reviews every five years after the previous review date.

 

EIOPA shall develop draft regulatory standards which adapt the base amount in euro referred to in point (f) of paragraph 2 by the percentage change in that Index over the period between the entry into force of this Directive and the first review date or between the last review date and the new review date and rounded up to the nearest euro.

 

EIOPA shall submit those draft regulatory technical standards to the Commission five years after the entry into force of this Directive and the successive reviews every five years after the previous review date.

 

Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1094/2010.

Amendment  6

Proposal for a directive

Article 2 – point 3

Text proposed by the Commission

Amendment

3. 'insurance mediation' means the activities of advising on, proposing or carrying out other work preparatory to the conclusion of contracts of insurance, concluding such contracts or assisting in the administration and performance of such contracts, in particular in the event of a claim, and the activity of professional management of claims and loss adjusting. These activities shall be considered to be insurance mediation also if carried on by an insurance undertaking without the intervention of an insurance intermediary.

3. 'insurance mediation' means the activities of advising on, proposing or carrying out other work preparatory to the conclusion of contracts of insurance, concluding such contracts or assisting in the administration and performance of such contracts, in particular in the event of a claim. These activities shall be considered to be insurance mediation also if carried on by an insurance undertaking without the intervention of an insurance intermediary. Comparing information regarding insurance products and prices on a commercial basis on a website should be considered as insurance intermediation.

Justification

It must be made clear that this paragraph applies to insurance comparison websites.

Amendment  7

Proposal for a directive

Article 2 – point 6 a (new)

Text proposed by the Commission

Amendment

 

6a. In order to guarantee that the same level of protection applies and that the consumer can benefit from comparable standards it is essential that this Directive promotes a level playing field and competition on equal terms between intermediaries whether they tied to an insurance undertaking or not. There is a benefit to consumers if insurance products are mediated through various channels and intermediaries with different forms of cooperation with insurance undertakings provided they have to apply the same rules on consumer protection. It is important that these aspects are taken into account by the Member States in the implementation of this Directive.

Amendment  8

Proposal for a directive

Article 2 – point 8

Text proposed by the Commission

Amendment

8 ‘tied insurance intermediary’ means any person who carries on the activity of insurance mediation for and on behalf of one or more insurance undertakings or insurance intermediaries, and who acts under the full responsibility of those insurance undertakings or insurance intermediaries, provided that the insurance intermediaries under whose responsibility the person acts do not themselves act under the responsibility of another insurance undertaking or intermediary;

8 ‘tied insurance intermediary’ means any person who carries on the activity of insurance mediation for and on behalf of one or more insurance undertakings or insurance intermediaries, and who acts under the full responsibility of those insurance undertakings or insurance intermediaries;

Justification

An intermediary is tied regardless of the capacity of the entity to which it is tied. The term also needs to be streamlined with the definition provided in previous legislation, such as in the proposed wording of the Proposal for a Directive of the European Parliament and of the Council on credit agreements relating to residential property, COM(2011) 142 final (CARRP).

Amendment  9

Proposal for a directive

Article 2 – point 9

Text proposed by the Commission

Amendment

9. 'advice' means the provision of a recommendation to a customer, either upon their request or at the initiative of the insurance undertaking or the insurance intermediary;

9. 'advice' means the provision of a personal recommendation to a customer, either upon their request or at the initiative of the insurance undertaking or the insurance intermediary;

Justification

Alignment with the definition used in CARP and MiFID. This is also to differentiate between what is information and what is advice.

Amendment  10

Proposal for a directive

Article 2 – point 10

Text proposed by the Commission

Amendment

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

10. 'contingent commission' means a remuneration in the form of a commission based on the achievement of pre-agreed targets or thresholds relating to the volume of business placed by the intermediary with the insurer,

Amendment  11

Proposal for a directive

Article 2 – point 19

Text proposed by the Commission

Amendment

19. ‘tying practice’ means the offering of 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.

deleted

Amendment  12

Proposal for a directive

Article 2 – point 20 a (new)

Text proposed by the Commission

Amendment

 

20a. ‘product’ means an insurance policy covering one or several risks.

Amendment  13

Proposal for a directive

Article 3 – paragraph 1 – subparagraph 3

Text proposed by the Commission

Amendment

Member States may stipulate that, where an insurance or reinsurance intermediary acts under the responsibility of an insurance or reinsurance undertaking or of another registered insurance or reinsurance intermediary, the latter intermediary or the undertaking shall be responsible for ensuring that it meets the conditions for registration set out in this Directive. In such a case, the person or entity accepting responsibility shall, having been informed by the Member States of the matters set out in paragraph 7 of this Article, sub-paragraphs (a) and (b), be satisfied as to the matter set out in paragraph 7 of this Article, sub-paragraph (c). Member States may also stipulate that the person or entity which takes responsibility for the intermediary shall register that intermediary.

Member States may stipulate that, where an insurance or reinsurance intermediary acts under the responsibility of an insurance or reinsurance undertaking or of another registered insurance or reinsurance intermediary, the insurance intermediary shall not be required to provide the competent authority with the information in points (a) and (b) of Article 3(7) and the insurance entity responsible shall ensure that the insurance intermediary meets the conditions for registration and other provisions set out in this Directive. Member States may also stipulate that the person or entity which takes responsibility for the intermediary shall register that intermediary.

Amendment  14

Proposal for a directive

Article 3 – paragraph 5 – subparagraph 1

Text proposed by the Commission

Amendment

Member States shall ensure that the competent authorities do not register an insurance or reinsurance intermediary unless it is satisfied that the intermediary meets the requirements laid down in Article 8.

Member States shall ensure that the competent authorities do not register an insurance or reinsurance intermediary unless it is satisfied that the intermediary meets the requirements laid down in Article 8, or that another intermediary or undertaking will take the responsibility for ensuring that the intermediary meets these requirements in accordance with subparagraph 3 of Article 3(1).

Amendment  15

Proposal for a directive

Article 3 – paragraph 5 a (new)

Text proposed by the Commission

Amendment

 

5a. Registered insurance and reinsurance intermediaries shall be allowed to take up and pursue the activity of insurance and reinsurance mediation in the Union by means of both freedom of establishment and freedom to provide services.

Amendment  16

Proposal for a directive

Article 3 – paragraph 7 – point a

Text proposed by the Commission

Amendment

(a) to provide information to their competent authorities of the identities of shareholders or members, whether natural or legal persons, that have a holding in the intermediary that exceeds 10% and the amounts of those holdings;

(a) tied intermediaries; and

Amendment  17

Proposal for a directive

Article 3 – paragraph 7 – point b

Text proposed by the Commission

Amendment

(b) to provide information to their competent authorities of the identities of persons who have close links with the insurance or reinsurance intermediary;

(b) intermediaries where another insurance entity takes responsibility for ensuring that the intermediary meet these requirements in accordance with subparagraph 3 of Article 3(1).

 

Member States shall ensure that their competent authorities require that insurance and reinsurance intermediaries to whom Article 3(7) applies inform them without undue delay where information provided under points (a) and (b) of Article 3(7) changes.

Amendment  18

Proposal for a directive

Article 4

Text proposed by the Commission

Amendment

Article 4

deleted

Declaration procedure for providing ancillary insurance mediation; professional management of claims or loss assessment services

 

1. The registration requirements in Article 3 shall not 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 the declaration;

 

(c) the insurance products concerned do not cover life assurance or liability risks, unless that cover is incidental to the main cover.

 

2. The registration requirements in Article 3 shall not apply to insurance intermediaries whose sole activity is professional management of claims or loss assessment services.

 

3. Any insurance intermediary who is subject to paragraphs 1 and 2 of this Article shall submit to the competent authority of its home Member State a declaration whereby it informs the competent authority of its identity, address and professional activities.

 

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.

 

Justification

In principle, intermediaries should be registered and something between registration and lack of registration should be avoided. It is also difficult to see that the procedure means any real simplification for the companies in question, given that the requirements in Article 8 have to be met.

Amendment  19

Proposal for a directive

Article 6 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

1a. An insurance intermediary is operating under freedom of establishment if he carries on business in a host Member State for an indefinite period via a permanent presence in that Member State.

Amendment  20

Proposal for a directive

Article 6 – paragraph 4 – subparagraph 4 a (new)

Text proposed by the Commission

Amendment

 

A registered insurance or reinsurance intermediary carries on an insurance mediation activity under the 'freedom of services' if:

 

a) it carries on insurance or reinsurance mediation with or for a policyholder who resides or is established in a Member State different from the home Member State of the intermediary;

 

b) any risk to be insured is situated in a Member State different from the home Member State of the intermediary;

 

c) it must comply with paragraphs 1 and 4.

Amendment  21

Proposal for a directive

Article 7 – paragraph 1

Text proposed by the Commission

Amendment

1. If an insurance intermediary's primary place of business is located in another Member State, then the competent authority of that other Member State may agree with the home Member State competent authority to act as if it were the home Member State competent authority with regard to the obligations in chapters VI, VII and VIII of this Directive. In the event of such an agreement, the home Member State competent authority shall notify the insurance intermediary and EIOPA without delay.

1. Each Member State shall require that:

 

a) any insurance intermediary which is a legal person have its head office in the same Member State as its registered office and that it actually operates there;

 

b) any insurance intermediary which is not a legal person or any insurance intermediary which is a legal person but under its national law has no registered office have its head office in a Member State in which it actually carries on its business.

 

If an insurance intermediary's primary place of business is located in another Member State, then the competent authority of that other Member State may agree with the home Member State competent authority to act as if it were the home Member State competent authority with regard to the obligations in Chapters VI, VII and VIII of this Directive. In the event of such an agreement, the home Member State competent authority shall notify the insurance intermediary and EIOPA without delay.

Amendment  22

Proposal for a directive

Article 7 – paragraph 3 – introductory part

Text proposed by the Commission

Amendment

3. Where the host Member State has grounds for concluding that an insurance or reinsurance intermediary acting within its territory under the freedom to provide services or through an establishment is in breach of any obligation set out in this Directive it shall refer those findings to the competent authority of the home Member State which shall take the appropriate measures. In cases where, despite measures taken by the competent authority of the home Member State, an insurance or reinsurance intermediary persists in acting in a manner that is clearly prejudicial to the interests of host Member State consumers or the orderly functioning of insurance and reinsurance markets, the insurance or reinsurance intermediary shall be subject to the following measures:

3. Where the host Member State has grounds for concluding that an insurance or reinsurance intermediary acting within its territory under the freedom to provide services or through an establishment is in breach of any obligation set out in this Directive, and where the host Member State does not have powers under this Directive to take action in response to such breaches, it shall refer those findings to the competent authority of the home Member State which shall take the appropriate measures. In cases where, despite measures taken by the competent authority of the home Member State, an insurance or reinsurance intermediary persists in acting in a manner that is clearly prejudicial to the interests of host Member State consumers or the orderly functioning of insurance and reinsurance markets, the insurance or reinsurance intermediary shall be subject to the following measures:

Amendment  23

Proposal for a directive

Article 8 – paragraph 1 – subparagraph 3

Text proposed by the Commission

Amendment

Member States may adjust the required conditions with regard to knowledge and ability in line with the particular activity of insurance or reinsurance mediation and the products mediated, particularly if the principal professional activity of the intermediary is other than insurance mediation. In such cases, that intermediary may pursue an activity of insurance mediation only if an insurance intermediary fulfilling the conditions of this Article or an insurance undertaking assumes full responsibility for the intermediary's actions. Member States may provide that in the cases referred to in the second subparagraph of Article 3(1), the insurance undertaking or intermediary shall verify that the knowledge and ability of the intermediaries are in conformity with the obligations set out in the first subparagraph of this paragraph and, if need be, shall provide such intermediaries with training which corresponds to the requirements concerning the products sold by the intermediaries.

Member States shall adjust the required conditions with regard to knowledge and ability in line with the particular activity of insurance or reinsurance mediation and the products mediated, particularly if the principal professional activity of the intermediary is other than insurance mediation.

 

The training and monitoring requirements of this article should not directly apply to those intermediaries who provide insurance mediation on an ancillary basis, but to the insurance undertakings or other intermediaries under whose responsibility they act and who themselves fulfil these obligations.

 

Member States may provide that in the cases referred to in the second subparagraph of Article 3(1), the insurance undertaking or intermediary shall verify that the knowledge and ability of the intermediaries are in conformity with the obligations set out in the first subparagraph of this paragraph and, if need be, shall provide such intermediaries with training which corresponds to the requirements concerning the products sold by the intermediaries.

Justification

Where there is a change of the professional requirements, the insurance undertaking which is underwriting a policy not only assumes full responsibility for the intermediary’s actions but is also responsible for the training and monitoring of the ancillary intermediary.

Amendment  24

Proposal for a directive

Article 8 – paragraph 3

Text proposed by the Commission

Amendment

3. Insurance and reinsurance intermediaries shall hold professional indemnity insurance covering the whole territory of the Union or some other comparable guarantee against liability arising from professional negligence, for at least EUR 1,120,000 applying to each claim and in aggregate EUR 1,680,000 per year for all claims, 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 or such undertaking has taken on full responsibility for the intermediary's actions.

3. Insurance and reinsurance intermediaries shall hold professional indemnity insurance or provide some other equivalent surety-ship relative to:

 

- the amount of mediation they undertake;

 

- whether or not insurance mediation is their main business activity; and

 

- the complexity of the products they mediate.

 

It shall cover the whole territory of the Union and provide surety-ship against liability arising from professional negligence, for at least EUR 1,120,000 applying to each claim and in aggregate EUR 1,680,000 per year for all claims, unless such insurance or comparable surety-ship 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 or such undertaking has taken on full responsibility for the intermediary's actions.

Justification

There should be a certain degree of proportionality between the complexity of insurance products and the indemnity insurances to be held by intermediaries. The word « guarantee » is quite a narrow legal term, which should be changed to encompass equivalent instruments, e.g. allowing for surety-ships (German: Bürgschaft).

Amendment  25

Proposal for a directive

Article 8 – paragraph 7 – subparagraph 2

Text proposed by the Commission

Amendment

EIOPA shall develop draft regulatory standards which adapt the base amount in euro referred to in paragraphs 3 and 4 by the percentage change in that Index over the period between the entry into force of this Directive and the first review date or between the last review date and the new review date and rounded up to the nearest euro.

deleted

Justification

Given the very different characteristics of national markets it is entirely appropriate that home Member States should set the required level of professional standards.

Amendment  26

Proposal for a directive

Article 8 – paragraph 7 – subparagraph 3

Text proposed by the Commission

Amendment

EIOPA shall submit those draft regulatory technical standards to the Commission five years after the entry into force of this Directive and the successive reviews every five years after the previous review date.

deleted

Justification

To be read in conjunction with other MH AMs to Article 8

Amendment  27

Proposal for a directive

Article 8 – paragraph 7 – subparagraph 4

Text proposed by the Commission

Amendment

Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1094/2010.

deleted

Justification

To be read in conjunction with other MH AMs to Article 8

Amendment  28

Proposal for a directive

Article 8 – paragraph 8

Text proposed by the Commission

Amendment

8. The Commission shall be empowered to adopt delegated acts in accordance with Article 33. Those delegated acts shall specify:

deleted

(a) the notion of adequate knowledge and ability of the intermediary when carrying on insurance mediation with its customers as referred to in paragraph 1 of this Article;

 

(b) appropriate criteria for determining in particular the level of professional qualifications, experiences and skills required for carrying on insurance mediation;

 

(c) the steps that insurance intermediaries and insurance undertakings might reasonably be expected to take to update their knowledge and ability through continuing professional development in order to maintain an adequate level of performance.

 

Amendment  29

Proposal for a directive

Article 10 – paragraph 3 a (new)

Text proposed by the Commission

Amendment

 

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;

 

(b) 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.

Justification

The powers of the competent authorities should be better described in order to ensure that competent authorities in all Member States have the powers needed to perform the duties provided for by the directive.

Amendment  30

Proposal for a directive

Article 13 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1. Member States shall ensure the setting-up of appropriate, effective, impartial and independent complaints and redress procedures for the out-of-court settlement of disputes between insurance intermediaries and customers, and between insurance undertakings and customers, using existing bodies where appropriate. Member States shall further ensure that all insurance undertakings and insurance intermediaries participate in the procedures for the out-of-court settlement of disputes where the following conditions are met:

1. Member States shall ensure the setting-up of appropriate, effective, impartial and independent complaints and redress procedures for the out-of-court settlement of disputes between insurance intermediaries and customers, and between insurance undertakings and customers, using existing bodies where appropriate.

Justification

The draft proposal would fundamentally undermine consumer protection by requiring that the decisions of ADR should not be binding on firms. If firms do not face the risk of being bound, their incentives to reach a mediated settlement will be significantly reduced. These amendments propose that all conditions imposed on ADR schemes in Article 13 are omitted. This will allow member states the flexibility to adopt ADR arrangements that are suited to the specificities of their market and legal system.

Amendment  31

Proposal for a directive

Article 13 – paragraph 1 – point a

Text proposed by the Commission

Amendment

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

deleted

Justification

To be read in conjunction with other MH AMs to Article 13.

Amendment  32

Proposal for a directive

Article 13 – paragraph 1 – point a a (new)

Text proposed by the Commission

Amendment

 

(aa) where a customer initiates a procedure for alternative dispute resolution laid down in national law against an insurance intermediary or insurance undertaking with regard to a dispute concerning rights and obligations established under this Directive the insurance intermediary or insurance undertaking shall be required to participate in that procedure.

 

For the purposes of the application of this Directive the competent authorities shall cooperate with each other and with the entities responsible for out-of-court complaint and redress procedure referred to above and to the extent permitted by EU Directives or regulations in force.

Amendment  33

Proposal for a directive

Article 13 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b) [the running of] the limitation period for bringing the dispute before a court is suspended for the duration of the procedure for alternative dispute resolution;

deleted

Justification

To be read in conjunction with other MH AMs to Article 13.

Amendment  34

Proposal for a directive

Article 13 – paragraph 1 – point c

Text proposed by the Commission

Amendment

(c) the period of prescription of the claim is suspended for the duration of the procedure;

deleted

Justification

To be read in conjunction with other MH AMs to Article 13.

Amendment  35

Proposal for a directive

Article 13 – paragraph 1 – point d

Text proposed by the Commission

Amendment

(d) the procedure is free of charge or at moderate costs;

deleted

Justification

To be read in conjunction with other MH AMs to Article 13.

Amendment  36

Proposal for a directive

Article 13 – paragraph 1 – point e

Text proposed by the Commission

Amendment

(e) electronic means are not the only means by which the parties can gain access to the procedure and;

deleted

Justification

To be read in conjunction with other MH AMs to Article 13.

Amendment  37

Proposal for a directive

Article 13 – paragraph 1 – point f

Text proposed by the Commission

Amendment

(f) interim measures are possible in exceptional cases where the urgency of the situation so requires.

deleted

Justification

To be read in conjunction with other MH AMs to Article 13.

Amendment  38

Proposal for a directive

Article 13 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall ensure that these bodies cooperate in the resolution of cross-border disputes.

2. For business-to-customer transactions, these bodies shall comply with Directive 2013/.../EU [on alternative dispute resolution for consumer disputes].

 

 

Justification

Redress procedures shall be set up for out-of-court settlement of disputes for both intermediaries and insurance undertakings and customers. This provision should be consistent with recent initiatives for an Alternative Dispute Resolution Directive (ADR).

Amendment  39

Proposal for a directive

Article 13 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

 

2a. Member States shall ensure that insurance intermediaries established on their territories inform consumers about the name, address and website address of the ADR entities by which they are covered and which are competent to deal with potential disputes between themselves and consumers.

Amendment  40

Proposal for a directive

Article 13 – paragraph 2 b (new)

Text proposed by the Commission

Amendment

 

2b. Insurance intermediaries within the Union engaging in online and cross-border online sales shall inform consumers about the ODR platform, if applicable and about their email address. This information shall be made easily, directly, prominently and permanently accessible on the insurance intermediaries' website and if the offer is made by e-mail or another textual message transmitted by electronic means, in that message. It shall include an electronic link to the ODR platform's homepage. Insurance intermediaries shall also inform consumers about the ODR platform when the consumer submits a complaint to the insurance intermediary, a consumer complaint handling system operated by the insurance intermediary or to a company ombudsman.

Amendment  41

Proposal for a directive

Article 14

Text proposed by the Commission

Amendment

Member States shall ensure that insurance and reinsurance undertakings and intermediaries use the insurance and reinsurance mediation services only of registered insurance and reinsurance intermediaries or of the persons referred to in Article 1(2) or of the persons who have fulfilled the declaration procedure referred to in Article 4.

Member States shall ensure that insurance and reinsurance undertakings and intermediaries use the insurance and reinsurance mediation services only of registered insurance and reinsurance intermediaries or of the persons referred to in Article 1(2) or of the persons who have fulfilled the declaration procedure referred to in Article 4. If national law provides, when insurance and reinsurance intermediaries based inside the Union use the services of insurance or reinsurance intermediaries outside the Union, it is not necessary for the intermediary or undertaking which is based outside the Union to be registered within the Member State.

Justification

The geographical scope has been made clearer to ensure that intermediaries registered within the EU can still work with those outside of EU.

Amendment  42

Proposal for a directive

Article 17 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

1a. An insurance intermediary is regarded as providing advice on an independent basis only if the intermediary in its information to the customer has stated that this is the case.

Justification

The last paragraph is added in order to clarify that "non-tied" intermediaries should not per se be regarded as providing advice on an independent basis

Amendment  43

Proposal for a directive

Article 17 – paragraph 1 – point (c) – point (i)

Text proposed by the Commission

Amendment

(i) it gives advice on the basis of a fair analysis, or

(i) it must disclose whether it gives advice on the basis of a fair and personal analysis, or

Justification

Consumers must be well informed about the advice they are receiving.

Amendment  44

Proposal for a directive

Article 17 – paragraph 1 – point (c) – point (iii)

Text proposed by the Commission

Amendment

(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 analysis. In that case, it shall provide the names of the insurance undertakings with which it may and does conduct business;

(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 and personal analysis. In that case, it shall provide the names of the insurance undertakings with which it may and does conduct business ;

Amendment  45

Proposal for a directive

Article 17 – paragraph 1 – point d

Text proposed by the Commission

Amendment

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

deleted

Justification

Appears to duplicate point e)

Amendment  46

Proposal for a directive

Article 17 – paragraph 1 – point f

Text proposed by the Commission

Amendment

(f) if the intermediary will receive a fee or a commission of any kind, the full amount of the remuneration concerning the insurance products being offered or considered or, where the precise amount is not capable of being given, the basis of calculation of all the fee or commission or the combination of both;

(f) if the intermediary will receive remuneration of any kind in relation to the insurance contract, the full amount of the remuneration concerning the insurance products being offered or considered or, where the precise amount is not capable of being given, the basis of calculation of all remuneration, upon request of the consumer;

Justification

The proposed amendment will ensure the full disclosure of fees to customers.

Amendment  47

Proposal for a directive

Article 17 – paragraph 1 – point (g)

Text proposed by the Commission

Amendment

(g) if the amount of the commission is based on the achievement of 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.

(g) that the consumer has the right to request the information referred to in point (f)

Justification

There is a direct conflict of interest between targets or thresholds of sales of products and acting in the consumer's best interest.

Amendment  48

Proposal for a directive

Article 17 – paragraph 2

Text proposed by the Commission

Amendment

2. By derogation from paragraph 1 (f) for five years from the date on which this Directive comes into force, 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,

deleted

(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 requests.

 

(b) inform the customer of his right to request the information referred to in point (a).

 

Justification

With special reference to the provisions on the marketing of non-financial insurance products, since such products do not comprise any investment component and the commission does not in any way affect its performance, we propose that these provisions be deleted.

Amendment  49

Proposal for a directive

Article 17 – paragraph 4

Text proposed by the Commission

Amendment

4. If any payments are made by the customer under the insurance contract after its conclusion, the insurance undertaking or intermediary shall also make the disclosures in accordance with this Article for each such payment.

4. With the exception of cases where a regular monthly direct debit of the exact same amount has been fully disclosed, including the number of months the direct debit will be debited before the signing of a contract, if any payments are made by the customer under the insurance contract after its conclusion, the insurance undertaking or intermediary shall also make the disclosures in accordance with this Article for each such payment.

Justification

For regular direct debits which have been agreed to in a contract, where the consumer has been well informed about such direct debits, it is an unfair burden on insurance undertakings or intermediaries to communicate with the consumer every time the debit occurs.

Amendment  50

Proposal for a directive

Article 17 – paragraph 5

Text proposed by the Commission

Amendment

5. The Commission shall be empowered to adopt delegated acts in accordance with Article 33. Those delegated acts shall specify:

deleted

(a) appropriate criteria for determining how the remuneration of the intermediary - including contingent commission – shall be disclosed to the customer as referred to in paragraph 1 (f ) and (g) and paragraph 2 of this Article;

 

(b) appropriate criteria for determining in particular the basis of calculation of all the fee or commission or the combination of both;

 

(c) the steps that insurance intermediaries and insurance undertakings might reasonably be expected to take to disclose their remuneration to the customer.

 

Justification

IMD2 should have a clear and comprehensive level 1 text which goes against the logic of giving the Commission delegated powers.

Amendment  51

Proposal for a directive

Article 18 – paragraph 2

Text proposed by the Commission

Amendment

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.

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 and the distribution route.

Amendment  52

Proposal for a directive

Article 18 – paragraph 3

Text proposed by the Commission

Amendment

3. When the insurance intermediary or the insurance undertaking inform the customer that it gives its advice on the basis of a fair analysis, it is obliged to give that advice on the basis of an analysis of a sufficiently large number of insurance contracts available on the market, to enable it to make a recommendation, in accordance with professional criteria regarding which insurance contract would be adequate to meet the customer's needs.

3. When the insurance intermediary or the insurance undertaking inform the customer that it provides its advice on the basis of a fair analysis, it is obliged to provide that advice on the basis of an analysis of a significant and sufficiently large number of insurance contracts. Insurance intermediaries must also source these contracts from a significant and sufficiently large number of insurance providers available on the market, to enable it to make a recommendation, in accordance with professional criteria regarding which insurance contract would be adequate to meet the customer's needs.

Justification

To avoid cases where only one insurance provider's contracts are looked at and suggested, more than one provider's contracts should be analysed.

Amendment  53

Proposal for a directive

Article 18 – paragraph 4

Text proposed by the Commission

Amendment

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 customers.

4. Prior to the conclusion of a contract, whether or not advice is provided, the insurance intermediary or insurance undertaking shall provide 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 customers. It shall be provided in a standardised information sheet, in a plain language, and containing the key information of the insurance contract.

Amendment  54

Proposal for a directive

Article 18 a (new)

Text proposed by the Commission

Amendment

 

Article 18a

 

This Article shall not apply to persons carrying out insurance mediation when carried on in relation to the sale of insurance investment products by:

 

(a) an insurance intermediary;

 

(b) an insurance undertaking.

Justification

Insurance mediation in relation to the sale of insurance investment products is already dealt with in chapter VII. The associated appropriateness and suitability test are also already applicable and dealt with in Article 25. These rules should therefore not be duplicated.

Amendment  55

Proposal for a directive

Article 19 – paragraph 1

Text proposed by the Commission

Amendment

1. The information referred to in Articles 16, 17 and 18 need not be given when the insurance intermediary or insurance undertaking mediates in the insurance of large risks, in the case of mediation by reinsurance intermediaries or reinsurance undertakings, or in relation to professional customers as specified in the Annex .

1. The information referred to in Articles 16, 17 and 18 need not be provided when the insurance intermediary or insurance undertaking mediates in the insurance of large risks, in the case of mediation by reinsurance intermediaries or reinsurance undertakings, or in relation to professional customers as specified in the Annex .

Amendment  56

Proposal for a directive

Article 19 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

 

2a. Member States which maintain or adopt stricter provisions applying to insurance intermediaries shall ensure that these provisions respect level playing field principles and that the administrative burden stemming from these provisions is proportionate relative to the consumer protection benefits.

Amendment  57

Proposal for a directive

Article 20 – paragraph 7

Text proposed by the Commission

Amendment

7. In the case of telephone selling, the prior information given to the customer shall be in accordance with Union rules applicable to the distance marketing of consumer financial services. Moreover, information shall be provided to the customer in accordance with paragraph 1 or 2 immediately after the conclusion of the insurance contract.

7. In the case of telephone selling, the prior information given to the customer shall be in accordance with Union rules applicable to the distance marketing of consumer financial services. Moreover, following the conditions of paragraph 4(b) being met, information shall be provided to the customer in accordance with paragraph 1 or 2 immediately after the conclusion of the insurance contract.

Justification

It's fair to ask the customer if they want paper or electronic means rather than a telephone seller making the decision for the customer.

Amendment  58

Proposal for a directive

Article 21 – paragraph 1

Text proposed by the Commission

Amendment

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

1. Member States shall allow bundling practices

 

1a. Member States may require that national competent authorities in cooperation with EIOPA shall intervene on a case-by-case basis to forbid certain tying practices when they can demonstrate that such practices are detrimental to consumers.

Justification

There is no clear evidence of consumer detriment to support a ban on tying insurance products, as these proposals were not part of the Commission’s IMD consultation and impact assessment.

Amendment  59

Proposal for a directive

Article 21 – paragraph 2

Text proposed by the Commission

Amendment

2. When an insurance service or product is offered together with another service or product as a package, the insurance undertaking or, where applicable, the insurance intermediary shall offer and inform the customer that it is possible to buy the components of the package separately and shall provide information of the costs and charges of each component of the package that may be bought through or from it separately.

2. When insurance is offered together with another service or product as a package, the insurance undertaking or, where applicable, the insurance intermediary shall inform the customer whether it is possible to buy the components of the package separately and, if so shall provide information of the costs and charges of each component of the package that may be bought through or from it separately.

Justification

This wording brings the proposal in line with the MiFID approach.

Amendment  60

Proposal for a directive

Article 22 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

Article 23 (1) and (2) shall also apply to insurance intermediaries and insurance undertakings when carrying out insurance mediation in relation to all insurance products.

Justification

As for MH AMs in relation to Article 17, remuneration disclosure is of limited value in addressing conflicts of interest. This extends the Article 23 conflicts of interest rules to all insurance products.

Amendment  61

Proposal for a directive

Article 22 – paragraph 1 b new

Text proposed by the Commission

Amendment

 

Member States may maintain or adopt stricter provisions regarding the customer protection requirements referred to in Articles 21, 23, 24 and 25 provided that such provisions comply with Union law. ESMA and EIOPA should work together to achieve as much consistency as possible in the conduct of business standards for retail investment products that are subject to either (MiFID II) or to this Directive through guidelines.

Amendment  62

Proposal for a directive

Article 23 – paragraph 1

Text proposed by the Commission

Amendment

1. Member States shall require insurance intermediaries and insurance undertakings to take all appropriate steps to identify conflicts of interest between themselves, including their managers, employees and tied insurance intermediaries, or any person directly or indirectly linked to them by control and their customers or between one customer and another that arise in the course of carrying on insurance mediation.

1. Member States shall require insurance intermediaries and insurance undertakings to take all appropriate steps to identify, mitigate, avoid and remove conflicts of interest between themselves, including their managers, employees and tied insurance intermediaries, or any person directly or indirectly linked to them by control and their customers or between one customer and another that arise in the course of carrying on insurance mediation.

Justification

It's fair to ask the customer if they want paper or electronic means rather than the phone insurance company making that call.

Amendment  63

Proposal for a directive

Article 23 – paragraph 2

Text proposed by the Commission

Amendment

2. Where steps taken by the insurance intermediary or insurance undertaking in compliance with Articles 15, 16 and 17 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.

2. An insurance intermediary or insurance undertaking 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 and sources of conflicts of interest and the steps taken to mitigate those risks to the customer.

Amendment  64

Proposal for a directive

Article 23 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

 

2a. The disclosure must:

 

(a) be made in a durable medium; and

 

(b) include sufficient details, 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.

Justification

It is essential that those sale standards for insurance investment products are consistent, irrespective of whether these products are financial instruments or as insurance investment products. This will help reduce confusion and potential for regulatory arbitrage while strengthening policyholder protection. It is therefore important that the IMD2 text mirrors the MiFID text.

Amendment  65

Proposal for a directive

Article 24 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

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 Annex I.

Justification

The proposed changes to Article 24 provides guidance on the application of these articles in regard to professional customers and other amendments to bring the text in line with the current approach in MiFID II.

Amendment  66

Proposal for a directive

Article 24 – paragraph 3 – point a

Text proposed by the Commission

Amendment

(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 whether the insurance intermediary or insurance undertaking will provide the customer with the on-going assessment of the suitability of the insurance product recommended to the customer;

(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 whether the insurance intermediary or insurance undertaking will provide the customer with the on-going assessment of and latest information about the suitability of the insurance product recommended to the customer;

Justification

An on-going assessment, meaning repeated compulsory advice about the insurance product and its suitability is hardly feasible, whereas providing the latest information about a product or service at the customer’s request is a necessary service.

Amendment  67

Proposal for a directive

Article 24 – paragraph 3 – point b

Text proposed by the Commission

Amendment

(b) insurance products and proposed investment strategies. This should include appropriate guidance on and warnings of the risks associated with investments in those products or in respect of particular investment strategies; and

(b) insurance products and proposed investment strategies. This should include appropriate guidance on and warnings of the risks associated with investments in those products or in respect of particular investment strategies including the risk that there may be no return on, or a loss of the initial investment; and

Amendment  68

Proposal for a directive

Article 24 – paragraph 3 – point c

Text proposed by the Commission

Amendment

(c) costs and associated charges.

(c) costs and associated charges. Where charges are made on more than one occasion, and of a varying amount, an estimate of the cost will be provided, including when such charges can be expected.

Amendment  69

Proposal for a directive

Article 24 – paragraph 4

Text proposed by the Commission

Amendment

4. The information referred to in this Article should be provided in a comprehensible form in such a manner that the customers or potential customers are reasonably able to understand the nature and risks of the specific insurance product that is being offered and, consequently, to take investment decisions on an informed basis. This information may be provided in a standardised format.

4. The information referred to in this Article should be provided in a comprehensible form in such a manner that the customers or potential customers are reasonably able to understand the nature and risks of the specific insurance product type that is being offered and, consequently, to take investment decisions on an informed basis. This information may be provided in a standardised format.

Justification

Consistency with the wording in MiFID II.

Amendment  70

Proposal for a directive

Article 24 – paragraph 5 – point a

Text proposed by the Commission

Amendment

(a) assess a sufficiently large number 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

(a) assess a 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

Amendment  71

Proposal for a directive

Article 24 – paragraph 5 – point b

Text proposed by the Commission

Amendment

(b) not accept or receive 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.

(b) whether a fee is payable by the customer for the advice;

Amendment  72

Proposal for a directive

Article 24 – paragraph 5 a (new)

Text proposed by the Commission

Amendment

 

5a. Member States may impose extra requirements on insurance intermediaries or insurance undertakings who inform the customer that that investment advice is provided on an independent basis.

Amendment  73

Proposal for a directive

Article 24 – paragraph 6

Text proposed by the Commission

Amendment

6. The Commission shall be empowered to adopt delegated acts in accordance with Article 33 concerning measures to ensure that insurance intermediaries and insurance undertakings comply with the principles set out in this Article when carrying on insurance mediation with their customers. Those delegated acts shall specify:

deleted

(a) the nature of the service(s) offered or provided to the customer or potential customer, taking into account the type, object, size and frequency of the transactions; and

 

(b) the nature of the products being offered or considered including different types of insurance products.

 

Justification

The mandate and objective of the delegated acts is not defined clearly.

Amendment  74

Proposal for a directive

Article 26 – paragraph 1

Text proposed by the Commission

Amendment

1. Member States shall ensure that their administrative sanctions and measures are effective, proportionate and dissuasive.

1. Member States shall ensure that their administrative sanctions and measures are effective, proportionate, dissuasive corresponding to the complexity of the product or service.

Justification

Sanctions should, more explicitly, also be proportionate in relation to the complexity of the products or service being mediated.

Amendment  75

Proposal for a directive

Article 34 – paragraph 5

Text proposed by the Commission

Amendment

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 2 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 2 months at the initiative of the European Parliament or the Council.

5. A delegated act adopted pursuant to Articles 23 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 2 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 2 months at the initiative of the European Parliament or the Council.

PROCEDURE

Title

Insurance mediation (recast)

References

COM(2012)0360 – C7-0180/2012 – 2012/0175(COD)

Committee responsible

       Date announced in plenary

ECON

11.9.2012

 

 

 

Opinion by

       Date announced in plenary

IMCO

11.9.2012

Rapporteur

       Date appointed

Catherine Stihler

18.9.2012

Discussed in committee

10.1.2013

20.2.2013

11.4.2013

 

Date adopted

25.4.2013

 

 

 

Result of final vote

+:

–:

0:

34

1

0

Members present for the final vote

Adam Bielan, Preslav Borissov, Cristian Silviu Buşoi, Lara Comi, Anna Maria Corazza Bildt, António Fernando Correia de Campos, Vicente Miguel Garcés Ramón, Evelyne Gebhardt, Thomas Händel, Małgorzata Handzlik, Malcolm Harbour, Philippe Juvin, Toine Manders, Franz Obermayr, Phil Prendergast, Mitro Repo, Robert Rochefort, Zuzana Roithová, Heide Rühle, Christel Schaldemose, Andreas Schwab, Catherine Stihler, Róża Gräfin von Thun und Hohenstein, Bernadette Vergnaud

Substitute(s) present for the final vote

Ashley Fox, Ildikó Gáll-Pelcz, Anna Hedh, Constance Le Grip, Morten Løkkegaard, Pier Antonio Panzeri, Patricia van der Kammen, Kerstin Westphal

Substitute(s) under Rule 187(2) present for the final vote

Bendt Bendtsen, Seán Kelly, Paul Rübig

(1)

Study on the impact of the revision of the Insurance Mediation Directive (ETD/2007/IM/B2/51) final report;

http://ec.europa.eu/internal_market/insurance/docs/mediation/imd_final_en.pdf

(2)

Commission staff working document Impact Assessment accompanying the document Directive of the European Parliament and of the Council on Insurance Mediation

http://ec.europa.eu/internal_market/insurance/docs/consumers/mediation/20120703-impact-assessment_en.pdf


OPINION of the Committee on Legal Affairs (21.3.2013)

for the Committee on Economic and Monetary Affairs

on the proposal for a directive of the European Parliament and of the Council on insurance mediation (recast)

(COM(2012)0360 – C7-0180/2012 – 2012/0175(COD))

Rapporteur: Klaus-Heiner Lehne

AMENDMENTS

The Committee on Legal Affairs calls on the Committee on Economic and Monetary Affairs, as the committee responsible, to incorporate the following amendments into its report:

Amendment  1

Proposal for a directive

Recital 2

Text proposed by the Commission

Amendment

(2) Since the main objective and subject-matter of this proposal is to harmonise national provisions concerning the mentioned areas, the proposal should be based on Article 53(1) and 62 TFEU. The form of a Directive is appropriate in order to enable the implementing provisions in the areas covered by this Directive, when necessary, to be adjusted to any existing specificities of the particular market and legal system in each Member State. This Directive should also aim at coordinating national rules concerning the access to the activity of insurance and reinsurance mediation including professional management of claims and loss adjusting, and is therefore based on Article 53(1) of the Treaty. In addition, since this is a sector offering services across the Union, this Directive is also based on Article 62 of the Treaty.

(2) Since the main objective and subject-matter of this proposal is to harmonise national provisions concerning the mentioned areas, the proposal should be based on Article 53(1) and 62 TFEU. The form of a Directive is appropriate in order to enable the implementing provisions in the areas covered by this Directive, when necessary, to be adjusted to any existing specificities of the particular market and legal system in each Member State. This Directive should also aim at coordinating national rules concerning the access to the activity of insurance and reinsurance mediation and is therefore based on Article 53(1) of the Treaty. In addition, since this is a sector offering services across the Union, this Directive is also based on Article 62 of the Treaty.

Amendment  2

Proposal for a directive

Recital 6

Text proposed by the Commission

Amendment

(6) In order to guarantee that the same level of protection applies regardless of the channel through which consumers buy an insurance product, either directly from an insurance undertaking or indirectly from an intermediary, the scope of the Directive needs to cover not only insurance undertakings but other market participants who sell insurance products on an ancillary basis (e.g. travel agents and car rental companies, suppliers of goods not meeting conditions for the exemption).

deleted

Amendment  3

Proposal for a directive

Recital 7

Text proposed by the Commission

Amendment

(7) This Directive should apply to persons whose activity consists of assisting (whether on behalf of a customer or an insurance undertaking) in the administration and performance of a contract of insurance or reinsurance, including the professional management of claims, or of loss adjusting or the expert appraisal of claims.

(7) This Directive should apply to persons whose activity consists of assisting (whether on behalf of a customer or an insurance undertaking) in the administration and performance of a contract of insurance or reinsurance.

Amendment  4

Proposal for a directive

Recital 12

Text proposed by the Commission

Amendment

(12) This Directive should not apply to persons with another professional activity, such as tax experts or accountants, who provide advice on insurance cover on an incidental basis in the course of that other professional activity, neither should it apply to the mere provision of information of a general nature on insurance products, provided that the purpose of that activity is not to help the customer conclude or fulfil an insurance or reinsurance contract.

(12) This Directive should not apply to persons with another professional activity, such as tax experts or accountants, who provide advice on insurance cover on an incidental basis in the course of that other professional activity, neither should it apply to the mere provision of information of a general nature on insurance products, provided that the purpose of that activity is not to help the customer conclude or fulfil an insurance or reinsurance contract nor the professional management of claims for an insurance or reinsurance undertaking, nor the loss adjusting and expert appraisal of claims.

Amendment  5

Proposal for a directive

Recital 20

Text proposed by the Commission

Amendment

(20) Member States should not apply the registration requirements to insurance intermediaries which conduct insurance mediation in relation to certain types of insurance contract on an ancillary basis or to professional management of claims, loss adjusting or expert appraisal of claims, provided that they comply with the requirements of this Directive as to knowledge and ability and good repute and the applicable information and conduct of business requirements, and a declaration of activity has been submitted to the competent authority.

deleted

Amendment  6

Proposal for a directive

Recital 22

Text proposed by the Commission

Amendment

(22) It is important to guarantee a high level of professionalism and competence among insurance and reinsurance intermediaries and the employees of direct insurers who are involved in activities preparatory to, during and after the sales of insurance policies. Therefore, the professional knowledge of an intermediary, of the employees of direct insurers, and of car rental companies and travel agents, as well as the professional knowledge of persons carrying on the activities of the management of claims, loss adjusting or expert appraisal of claims needs to match the level of complexity of these activities. Continuing education should be ensured.

(22) It is important to guarantee a high level of professionalism and competence among insurance and reinsurance intermediaries and the employees of direct insurers who are involved in activities preparatory to, during and after the sales of insurance policies. Therefore, the professional knowledge of an intermediary and of the employees of direct insurers needs to enable them to complete their tasks and perform their duties adequately. Continuing education should be ensured.

Amendment  7

Proposal for a directive

Recital 31

Text proposed by the Commission

Amendment

(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.

deleted

Amendment  8

Proposal for a directive

Recital 32

Text proposed by the Commission

Amendment

(32) In order to provide a customer with comparable information on the insurance mediation services 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.

deleted

Amendment  9

Proposal for a directive

Recital 50

Text proposed by the Commission

Amendment

(50) In order to attain the objectives set out in this Directive, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission in respect of details concerning notions of adequate knowledge and competence of the intermediary, management of conflicts of interest, conduct of business obligations in relation to insurance packaged retail investment products and procedures and forms for submitting information in relation to sanctions. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council.

deleted

Amendment  10

Proposal for a directive

Recital 52

Text proposed by the Commission

Amendment

(52) By means of delegated acts pursuant to Articles 290 and 291 of the Treaty on the Functioning of the European Union and in accordance with Articles 10 to 15 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), the Commission should adopt delegated acts as set out in Articles [8] regarding notions of adequate knowledge and ability of the intermediary, Article [17 and23] regarding management of conflicts of interest and Articles [24 and 25] regarding conduct of business obligations in relation to insurance packaged retail investment products as well as implementing technical standards as set out in Article [30] regarding procedures and forms for submitting information in relation to sanctions. These delegated acts and implementing technical standards should be developed in draft by EIOPA.

(52) In accordance with Articles 10 to 15 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), the Commission should adopt implementing technical standards as set out in Article [31] regarding procedures and forms for submitting information in relation to sanctions. These implementing technical standards should be developed in draft by EIOPA.

Amendment  11

Proposal for a directive

Article 1 – paragraph 1

Text proposed by the Commission

Amendment

1. This Directive lays down rules concerning the taking-up and pursuit of the activities of insurance and reinsurance mediation, including professional management of claims and loss adjusting, by natural and legal persons which are established in a Member State or which wish to be established there.

1. This Directive lays down rules concerning the taking-up and pursuit of the activities of insurance and reinsurance mediation by natural and legal persons which are established in a Member State or which wish to be established there.

Justification

The inclusion of the activities of professional management of claims and loss adjusting in the scope of the directive is not justified. These activities do not relate to the selling of insurance products and cannot be considered insurance mediation activities. Moreover, these activities are already sufficiently covered by national legislation.

Amendment  12

Proposal for a directive

Article 1 – paragraph 2 – point e

Text proposed by the Commission

Amendment

(e) the insurance is complementary to goods supplied by any provider, where such insurance covers the risk of breakdown, loss of or damage to the goods supplied by that provider ;

(e) the insurance is complementary to the product or service supplied by any provider, where such insurance covers:

Justification

The exception for complementary insurances covering damage to or loss of baggage and other risks linked to the travel booked with that provider which was already contained in IMD1 should be upheld. Such insurances are usually simple products with low premium and short duration. The inclusion of such complementary insurances into the scope of the directive is therefore not necessary.

Amendment  13

Proposal for a directive

Article 1 – paragraph 2 – point e – point i (new)

Text proposed by the Commission

Amendment

 

i) the risk of breakdown, loss of or damage to goods supplied by that provider, or

Justification

The exception for complementary insurances covering damage to or loss of baggage and other risks linked to the travel booked with that provider which was already contained in IMD1 should be upheld. Such insurances are usually simple products with low premium and short duration. The inclusion of such complementary insurances into the scope of the directive is therefore not necessary.

Amendment  14

Proposal for a directive

Article 1 – paragraph 2 – point e – point ii (new)

Text proposed by the Commission

Amendment

 

ii) damage to or loss of baggage and other risks linked to the travel booked with that provider, even if the insurance covers life assurance or liability risks, provided that the cover is ancillary to the main cover for the risks linked to that travel;

Justification

The exception for complementary insurances covering damage to or loss of baggage and other risks linked to the travel booked with that provider which was already contained in IMD1 should be upheld. Such insurances are usually simple products with low premium and short duration. The inclusion of such complementary insurances into the scope of the directive is therefore not necessary.

Amendment  15

Proposal for a directive

Article 2 – point 3 – subparagraph 1

Text proposed by the Commission

Amendment

3. ‘insurance mediation’ means the activities of advising on , proposing or carrying out other work preparatory to the conclusion of contracts of insurance, concluding such contracts or assisting in the administration and performance of such contracts, in particular in the event of a claim, and the activity of professional management of claims and loss adjusting. These activities shall be considered to be insurance mediation also if carried on by an insurance undertaking without the intervention of an insurance intermediary.

3. ‘insurance mediation’ means the activities of advising on, proposing or carrying out other work preparatory to the conclusion of contracts of insurance, or of concluding such contracts or assisting in the administration and performance of such contracts, in particular in the event of a claim. These activities shall be considered to be insurance mediation also if carried on by an insurance undertaking without the intervention of an insurance intermediary.

Amendment  16

Proposal for a directive

Article 2 – point 3 – subparagraph 2 – point a a (new)

Text proposed by the Commission

Amendment

 

(aa) the management of claims of an insurance undertaking on a professional basis, and loss adjusting and expert appraisal of claims;

Amendment  17

Proposal for a directive

Article 2 – point 6 – subparagraph 1

Text proposed by the Commission

Amendment

6. ‘reinsurance mediation’ means the activities of advising on , proposing or carrying out other work preparatory to the conclusion of contracts of reinsurance, of concluding such contracts or assisting in the administration and performance of such contracts, in particular in the event of a claim, and the activity of professional management of claims and loss adjusting. These activities shall be considered to be reinsurance mediation also if carried on by a reinsurance undertaking without the intervention of a reinsurance intermediary.

6. ‘reinsurance mediation’ means the activities of advising on, proposing or carrying out other work preparatory to the conclusion of contracts of reinsurance, or of concluding such contracts or assisting in the administration and performance of such contracts, in particular in the event of a claim. These activities shall be considered to be reinsurance mediation also if carried on by a reinsurance undertaking without the intervention of a reinsurance intermediary.

Amendment  18

Proposal for a directive

Article 2 – point 6 – subparagraph 2– point a a (new)

Text proposed by the Commission

Amendment

 

(aa) the management of claims of a reinsurance undertaking on a professional basis, and loss adjusting and expert appraisal of claims;

Amendment  19

Proposal for a directive

Article 2 – point 9

Text proposed by the Commission

Amendment

9. ‘advice’ means the provision of a recommendation to a customer, either upon their request or at the initiative of the insurance undertaking or the insurance intermediary;

9. ‘advice’ means the provision of personal recommendations to an actual or potential customer in relation to an insurance product, either upon their request or at the initiative of the insurance undertaking or the insurance intermediary;

Amendment  20

Proposal for a directive

Article 2 – point 10

Text proposed by the Commission

Amendment

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

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 activities run by the intermediary with that insurer;

Justification

Commissions can be generated not only by achieving targets related to the business placed but also by the number of claims from the clients of the intermediary. The definition should include all elements influencing this remuneration. Some bank-insurance groups calculate commissions based on cross-selling practices: e.g. a commission on a mortgage differs depending on whether a life insurance is sold to the same customer. This practice encourages the intermediary to sell several products at the same time, even if the client does not need them or could find a more attractive offer elsewhere.

Amendment  21

Proposal for a directive

Article 4

Text proposed by the Commission

Amendment

Article 4

deleted

Declaration procedure for providing ancillary insurance mediation; professional management of claims or loss assessment services

 

1. The registration requirements in Article 3 shall not 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 the declaration;

 

(c) the insurance products concerned do not cover life assurance or liability risks, unless that cover is incidental to the main cover.

 

2. The registration requirements in Article 3 shall not apply to insurance intermediaries whose sole activity is professional management of claims or loss assessment services.

 

3. Any insurance intermediary who is subject to paragraphs 1 and 2 of this Article shall submit to the competent authority of its home Member State a declaration whereby it informs the competent authority of its identity, address and professional activities.

 

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.

 

Justification

With the exclusion of the activities of professional management of claims and loss adjusting from the scope of the directive and the re-inclusion of the exception in Article 1 paragraph 2 point e), the declaration procedure is deprived of its main purpose and should therefore be deleted.

Amendment  22

Proposal for a directive

Article 8 – paragraph 1 – subparagraph 1

Text proposed by the Commission

Amendment

1. Insurance and reinsurance intermediaries, including those who pursue these activities on an ancillary basis, persons carrying on the activities of the professional management of claims, loss adjusting or expert appraisal of claims, and members of staff of insurance undertakings carrying out insurance mediation activities, shall possess appropriate knowledge and ability, as determined by the home Member State of the intermediary or undertaking, to complete their tasks and perform their duties adequately, demonstrating appropriate professional experience relevant to the complexity of the products they are mediating .

1. Insurance and reinsurance intermediaries and members of staff of insurance undertakings carrying out insurance mediation activities, shall possess appropriate knowledge and ability, as determined by the home Member State of the intermediary or undertaking, to complete their tasks and perform their duties adequately.

Justification

It is important that intermediaries and members of staff of insurance undertakings possess the appropriate knowledge and ability to complete their tasks adequately. The additional requirement of demonstrating appropriate professional experience should, however, be deleted. Otherwise, access to the profession of insurance intermediaries would become practically impossible.

Amendment  23

Proposal for a directive

Article 8 – paragraph 8 – introductory wording

Text proposed by the Commission

Amendment

8. The Commission shall be empowered to adopt delegated acts in accordance with Article 33. Those delegated acts shall specify

8. The Member States shall specify:

Amendment  24

Proposal for a directive

Article 8 – paragraph 8 a (new)

Text proposed by the Commission

Amendment

 

8a. For the mutual recognition of adequate knowledge and skills acquired by insurance and reinsurance mediators and insurance company employees performing insurance mediation activities and in particular their professional qualifications, a national qualification accredited to level 3 or above under the European Qualifications Framework for lifelong learning established under the Recommendation of the European Parliament and Council of 23 April 2008 shall be accepted by a host Member State as demonstrating that an insurance or reinsurance intermediary meets the requirements of knowledge and ability which are a condition of registration in accordance with this Directive.

Justification

In order to avoid fragmentation of the internal market, minimum requirements regarding knowledge and abilities applicable to all Member States should be established on the basis of the European Qualifications Framework.

Amendment  25

Proposal for a directive

Article 10 – paragraph 2

Text proposed by the Commission

Amendment

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.

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.

Justification

This amendment aims at avoiding conflict of interests between insurance intermediaries and their supervision authorities, thereby strengthening quality of service and market efficiency.

Amendment  26

Proposal for a directive

Article 10 – paragraph 3 a (new)

Text proposed by the Commission

Amendment

 

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;

 

(b) 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.

Justification

This amendment aims at avoiding conflict of interests between insurance intermediaries and their supervision authorities, thereby strengthening quality of service and market efficiency.

Amendment  27

Proposal for a directive

Article 13 – paragraph 1 – introductory wording

Text proposed by the Commission

Amendment

1. Member States shall ensure the setting-up of appropriate, effective, impartial and independent complaints and redress procedures for the out-of-court settlement of disputes between insurance intermediaries and customers, and between insurance undertakings and customers, using existing bodies where appropriate. Member States shall further ensure that all insurance undertakings and insurance intermediaries participate in the procedures for the out-of-court settlement of disputes where the following conditions are met:

1. Member States shall ensure the setting-up of appropriate, effective, impartial and independent complaints and redress procedures for the out-of-court settlement of disputes between insurance intermediaries and consumers, and between insurance undertakings and consumers, using existing bodies where appropriate. Member States shall further ensure that all insurance undertakings and insurance intermediaries participate in the procedures for the out-of-court settlement of disputes where the following conditions are met:

Amendment  28

Proposal for a directive

Article 17 – paragraph 1 – point c – point i

Text proposed by the Commission

Amendment

(i) it gives advice on the basis of a fair analysis, or

(i) it gives advice on the basis of a fair analysis taking into account the interest of the customer, or

Amendment  29

Proposal for a directive

Article 17 – paragraph 1 – point c – point iii

Text proposed by the Commission

Amendment

(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 analysis. In that case, it shall provide the names of the insurance undertakings with which it may and does conduct business;

(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 analysis taking into account the interest of the customer. In that case, it shall provide the names of the insurance undertakings with which it may and does conduct business;

Amendment  30

Proposal for a directive

Article 17 – paragraph 1 – point f

Text proposed by the Commission

Amendment

(f) if the intermediary will receive a fee or a commission of any kind, the full amount of the remuneration concerning the insurance products being offered or considered or, where the precise amount is not capable of being given, the basis of calculation of all the fee or commission or the combination of both;

(f) if the intermediary or any of its employees will receive a fee or a commission of any kind, the amount or, where the amount is not capable of being given or only with disproportionate efforts, the basis of calculation of the fee or commission or the combination of both, if the customer so requests. The customer is to be informed about his right to request this information.

Amendment  31

Proposal for a directive

Article 17 – paragraph 1 – point g

Text proposed by the Commission

Amendment

(g) if the amount of the commission is based on the achievement of 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.

deleted

Justification

Excessively detailed disclosures can be confusing for consumers. The disclosure of the amount of the remuneration and the nature and the basis of the calculation of any variable remuneration does not contribute to customer protection.

Amendment  32

Proposal for a directive

Article 17 – paragraph 2

Text proposed by the Commission

Amendment

2. By derogation from paragraph 1 (f) for five years from the date on which this Directive comes into force, 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,

deleted

(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 requests.

 

(b) inform the customer of his right to request the information referred to in point (a).

 

Justification

Excessively detailed disclosures can be confusing for consumers. The disclosure of the amount of the remuneration and the nature and the basis of the calculation of any variable remuneration does not contribute to customer protection.

Amendment  33

Proposal for a directive

Article 17 – paragraph 3

Text proposed by the Commission

Amendment

3. The insurance undertaking or insurance intermediary shall also inform the customer about the nature and the basis of the calculation of any variable remuneration received by any employee of theirs for distributing and managing the insurance product in question.

deleted

Justification

Excessively detailed disclosures can be confusing for consumers. The disclosure of the amount of the remuneration and the nature and the basis of the calculation of any variable remuneration does not contribute to customer protection.

Amendment  34

Proposal for a directive

Article 17 – paragraph 4

Text proposed by the Commission

Amendment

4. If any payments are made by the customer under the insurance contract after its conclusion, the insurance undertaking or intermediary shall also make the disclosures in accordance with this Article for each such payment.

deleted

Amendment  35

Proposal for a directive

Article 17 – paragraph 5

Text proposed by the Commission

Amendment

5. The Commission shall be empowered to adopt delegated acts in accordance with Article 33. Those delegated acts shall specify:

deleted

(a) appropriate criteria for determining how the remuneration of the intermediary - including contingent commission – shall be disclosed to the customer as referred to in paragraph 1 (f ) and (g) and paragraph 2 of this Article;

 

(b) appropriate criteria for determining in particular the basis of calculation of all the fee or commission or the combination of both;

 

(c) the steps that insurance intermediaries and insurance undertakings might reasonably be expected to take to disclose their remuneration to the customer.

 

Amendment  36

Proposal for a directive

Article 20 – paragraph 3

Text proposed by the Commission

Amendment

3. However, where the information referred to in Articles 16, 17 and 18 is provided using a durable medium other than paper or by means of a website, a paper copy shall be provided to the customer upon request and free of charge.

3. However, where the information referred to in Articles 16, 17 and 18 is provided using a durable medium other than paper or by means of a website, a paper copy shall be provided to the customer upon request and free of charge. The customer shall be informed about this right.

Amendment  37

Proposal for a directive

Article 23 – paragraph 2

Text proposed by the Commission

Amendment

2. Where steps taken by the insurance intermediary or insurance undertaking in compliance with Articles 15, 16 and 17 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.

2. An insurance intermediary or insurance undertaking 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.

Justification

In order to ensure that the IMDII text is in alignment with MiFID II, which require firms to have effective organisational and administrative arrangements designed to prevent conflict of interest.

Amendment  38

Proposal for a directive

Article 23 – paragraph 3

Text proposed by the Commission

Amendment

3. The Commission shall be empowered to adopt delegated acts in accordance with Article 33 to specify :

deleted

(a) the steps and effective organisational and administrative arrangements that insurance intermediaries and insurance undertakings might reasonably be expected to take to identify, prevent, manage and disclose conflicts of interest when providing insurance mediation;

 

(b) appropriate criteria for determining the types of conflict of interest whose existence may damage the interests of the customers or potential customers of the insurance intermediary or insurance undertaking.

 

Amendment  39

Proposal for a directive

Article 24 – paragraph 3 – point a

Text proposed by the Commission

Amendment

(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 whether the insurance intermediary or insurance undertaking will provide the customer with the on-going assessment of the suitability of the insurance product recommended to the customer;

(a) the insurance intermediary or insurance undertaking and its services. When advice is provided, information shall expressly 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 whether the insurance intermediary or insurance undertaking will provide the customer with the contractually guaranteed or non-binding periodical assessment of the suitability of the insurance product recommended to the customer;

Amendment  40

Proposal for a directive

Article 24 – paragraph 5

Text proposed by the Commission

Amendment

5. When the insurance intermediary or insurance undertaking informs the customer that insurance advice is provided on an independent basis, the insurance intermediary or insurance undertaking shall:

deleted

(a) assess a sufficiently large number 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

 

(b) not accept or receive 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.

 

Justification

The directive should not discriminate specific remuneration systems which have established themselves in the market and which ensure insurance coverage for citizens.

Amendment  41

Proposal for a directive

Article 24 – paragraph 6

Text proposed by the Commission

Amendment

6. The Commission shall be empowered to adopt delegated acts in accordance with Article 33 concerning measures to ensure that insurance intermediaries and insurance undertakings comply with the principles set out in this Article when carrying on insurance mediation with their customers. Those delegated acts shall specify:

deleted

(a) the nature of the service(s) offered or provided to the customer or potential customer, taking into account the type, object, size and frequency of the transactions; and

 

(b) the nature of the products being offered or considered including different types of insurance products.

 

Amendment  42

Proposal for a directive

Article 25 – paragraph 1

Text proposed by the Commission

Amendment

1. When providing advice the insurance intermediary or insurance undertaking shall obtain the necessary information regarding the customer's or potential customer's knowledge 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 insurance intermediary or insurance undertaking should recommend the insurance products that are suitable for the customer or potential customer.

1. When providing advice the insurance intermediary or insurance undertaking shall obtain the necessary information regarding the customer's or potential customer's needs, knowledge 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 interest and his investment objectives, on the basis of which the insurance intermediary or insurance undertaking should recommend the insurance products that are in the best interest for the customer or potential customer.

Amendment  43

Proposal for a directive

Article 25 – paragraph 2 – subparagraph 2

Text proposed by the Commission

Amendment

Where the insurance intermediary or insurance undertaking considers, on the basis of the information received 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.

Where the insurance intermediary or insurance undertaking considers, on the basis of the information asked under the previous subparagraph, that the product or service is not in the best interest of the customer or potential customer, the insurance intermediary or insurance undertaking shall inform the customer or potential customer why. This warning shall be provided in a standardised format.

Amendment  44

Proposal for a directive

Article 25 – paragraph 3

Text proposed by the Commission

Amendment

3. The insurance intermediary or insurance undertaking shall establish a record that includes a document or documents such as a contract which has been agreed between the insurance intermediary or insurance undertaking and the customer that set out the rights and obligations of the parties, and the other terms on which the insurance intermediary or insurance undertaking will provide services to the customer. The rights and duties of the parties to the contract may be incorporated by reference to other documents or legal texts.

3. The insurance intermediary or insurance undertaking shall establish a record that includes a document or documents such as a contract which has been agreed between the insurance intermediary or insurance undertaking and the customer that set out the rights and obligations of the parties, and the other terms on which the insurance intermediary or insurance undertaking will provide services to the customer. The rights and duties of the parties to the contract may be incorporated by reference to other documents or legal texts. That record shall be issued to the customer.

Amendment  45

Proposal for a directive

Article 25 – paragraph 3 a (new)

Text proposed by the Commission

Amendment

 

3a. 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 point (a) of Article 25(3) 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.

Justification

This amendment creates an equivalent standard to those in MiFIDII, providing a level playing field with non-insurance investment products.

Amendment  46

Proposal for a directive

Article 25 – paragraph 5

Text proposed by the Commission

Amendment

5. The Commission shall be empowered to adopt delegated acts in accordance with Article 33 to ensure that insurance intermediaries and insurance undertakings comply with the principles set out in this Article when carrying on insurance mediation with their customers. Those delegated acts shall specify :

deleted

(a) the nature of the service(s) offered or provided to the customer or potential customer, taking into account the type, object, size and frequency of the transactions;

 

(b) the nature of the products being offered or considered including different types of insurance products.

 

Amendment  47

Proposal for a directive

Article 28 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall ensure that in the cases referred to in paragraph 1, the administrative sanctions and measures that can be applied include at least the following:

2. Member States shall ensure that in the cases referred to in paragraph 1, the administrative sanctions and measures that can be applied include at least the following:

(a) a public statement, which indicates the natural or legal person and the nature of the breach;

 

(b) an order requiring the natural or legal person to cease the conduct and to desist from a repetition of that conduct;

(b) an order requiring the natural or legal person to cease the conduct and to desist from a repetition of that conduct;

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

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

(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 exercise functions in insurance intermediaries or reinsurance intermediaries, or insurance or reinsurance undertakings;

 

(e) in case of a legal person, administrative pecuniary sanctions of up to 10 % of the total annual turnover of the legal person in the preceding business year; where the legal person is a subsidiary of a parent undertaking, the relevant total annual turnover shall be the total annual turnover resulting from the consolidated accounts of the ultimate parent undertaking in the preceding business year;

(e) in case of a legal person, administrative pecuniary sanctions of up to 8 % of the total annual turnover of the legal person in the preceding business year; where the legal person is a subsidiary of a parent undertaking, the relevant total annual turnover shall be the total annual turnover resulting from the consolidated accounts of the ultimate parent undertaking in the preceding business year;

(f) in case of a natural person, administrative pecuniary sanctions of up to 5 000 000 EUR, or in the Member States where the Euro is not the official currency, the corresponding value in the national currency on the date of entry into force of this Directive; and

(f) in case of a natural person, administrative pecuniary sanctions of up to 3 000 000 EUR, or in the Member States where the Euro is not the official currency, the corresponding value in the national currency on the date of entry into force of this Directive; and

Where the benefit derived from the breach can be determined, Member States shall ensure that the maximum level is no lower than twice the amount of that benefit.

 

Amendment  48

Proposal for a directive

Article 34

Text proposed by the Commission

Amendment

Article 34

deleted

Exercise of the delegation

 

1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

 

2. The power to adopt delegated acts referred to in Articles 8, 17, 23, 24 and 25 shall be conferred on the Commission for an indeterminate period of time from the date of entry into force of this Directive.

 

3. The delegation of powers referred to in Articles 8, 17, 23, 24 and 25 may be revoked at any time by the European Parliament or by the Council. A decision of revocation shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

 

4. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

 

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 2 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 2 months at the initiative of the European Parliament or the Council.

 

PROCEDURE

Title

Insurance mediation (recast)

References

COM(2012)0360 – C7-0180/2012 – 2012/0175(COD)

Committee responsible

       Date announced in plenary

ECON

11.9.2012

 

 

 

Opinion by

       Date announced in plenary

JURI

22.11.2012

Rapporteur

       Date appointed

Klaus-Heiner Lehne

10.10.2012

Discussed in committee

22.1.2013

 

 

 

Date adopted

19.3.2013

 

 

 

Result of final vote

+:

–:

0:

22

1

0

Members present for the final vote

Raffaele Baldassarre, Luigi Berlinguer, Sebastian Valentin Bodu, Françoise Castex, Christian Engström, Marielle Gallo, Lidia Joanna Geringer de Oedenberg, Sajjad Karim, Klaus-Heiner Lehne, Jiří Maštálka, Alajos Mészáros, Bernhard Rapkay, Evelyn Regner, Francesco Enrico Speroni, Rebecca Taylor, Alexandra Thein, Rainer Wieland, Cecilia Wikström, Tadeusz Zwiefka

Substitute(s) present for the final vote

Piotr Borys, Eva Lichtenberger, Axel Voss

Substitute(s) under Rule 187(2) present for the final vote

Ricardo Cortés Lastra


PROCEDURE

Title

Insurance mediation (recast)

References

COM(2012)0360 – C7-0180/2012 – 2012/0175(COD)

Date submitted to Parliament

3.7.2012

 

 

 

Committee responsible

       Date announced in plenary

ECON

11.9.2012

 

 

 

Committee(s) asked for opinion(s)

       Date announced in plenary

IMCO

11.9.2012

JURI

22.11.2012

JURI

11.9.2012

 

Rapporteur(s)

       Date appointed

Werner Langen

27.3.2012

 

 

 

Discussed in committee

6.11.2012

21.1.2013

24.4.2013

28.5.2013

Date adopted

22.1.2014

 

 

 

Result of final vote

+:

–:

0:

35

4

3

Members present for the final vote

Marino Baldini, Elena Băsescu, Jean-Paul Besset, Sharon Bowles, Udo Bullmann, Nikolaos Chountis, George Sabin Cutaş, Leonardo Domenici, Derk Jan Eppink, Diogo Feio, Elisa Ferreira, Ildikó Gáll-Pelcz, Jean-Paul Gauzès, Sven Giegold, Othmar Karas, Wolf Klinz, Jürgen Klute, Rodi Kratsa-Tsagaropoulou, Philippe Lamberts, Werner Langen, Astrid Lulling, Hans-Peter Martin, Arlene McCarthy, Marlene Mizzi, Ivari Padar, Anni Podimata, Antolín Sánchez Presedo, Peter Simon, Theodor Dumitru Stolojan, Ivo Strejček, Kay Swinburne, Sampo Terho, Marianne Thyssen, Pablo Zalba Bidegain

Substitute(s) present for the final vote

Jean-Pierre Audy, Herbert Dorfmann, Sari Essayah, Ashley Fox, Enrique Guerrero Salom, Sophia in ‘t Veld, Oleg Valjalo

Substitute(s) under Rule 187(2) present for the final vote

Jürgen Creutzmann, Marian Harkin

Date tabled

5.2.2014

Last updated: 13 February 2014Legal notice