EUROPEAN UNION (Insurance Distribution)REGULATIONS 2018
Source: Iris Oifigiúl 2018-07-03

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paragraphs: (1) These Regulations may be cited as the European Union (Insurance Distribution) Regulations 2018.
(2) These Regulations shall come into operation on 1 October 2018.
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paragraphs: (1) In these Regulations—
(a) the principal professional activity of that person is other than insurance distribution;
(b) the person only distributes certain insurance products that are complementary to a good or service;
(c) the insurance products concerned do not cover life assurance or liability risks, unless that cover complements the good or service which the intermediary provides as its principal professional activity;
(a) allows a customer to store information addressed personally to the customer in a way that renders it accessible for future reference and for a period of time adequate for the purposes of the information, and
(b) allows the unchanged reproduction of the information stored;
(a) where the intermediary is a natural person, the Member State in which his or her residence is situated, or
(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;
(a) has a permanent presence or establishment, or
(b) provides services;
(a) non-life insurance products as listed in Annex I to 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 entitle the investor to certain benefits;
(d) officially recognised occupational pension schemes falling under the scope of—
(i) Directive 2003/41/EC of the European Parliament and of the Council of 3 June 20034 , or
(ii) 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;
(a) the provision of information on an incidental basis in the context of another professional activity where—
(i) the provider does not take any additional steps to assist in concluding or performing an insurance contract, or
(ii) the purpose of that activity is not to assist the customer in concluding or performing a reinsurance contract;
(b) the management of claims of an insurance undertaking or of a reinsurance undertaking on a professional basis, and loss adjusting and expert appraisal of claims;
(c) the mere provision of data and information on potential policyholders to insurance intermediaries, reinsurance intermediaries, insurance undertakings or reinsurance undertakings where the provider does not take any additional steps to assist in the conclusion of an insurance or reinsurance contract;
(d) the mere provision of information about insurance or reinsurance products, an insurance intermediary, a reinsurance intermediary, an insurance undertaking or a reinsurance undertaking to potential policyholders where the provider does not take any additional steps to assist in the conclusion of an insurance or reinsurance contract;
(a) which represents 10 per cent or more of the capital or the voting rights, or
(b) which represents less than 10 per cent of the capital or voting rights but which, in the opinion of the Bank, makes it possible to control or exercise a significant influence over the management of the insurance, reinsurance or ancillary insurance intermediary concerned;
(a) the provision of information on an incidental basis in the context of another professional activity where—
(i) the provider does not take any additional steps to assist in concluding or performing an insurance contract, or
(ii) the purpose of that activity is not to assist the customer in concluding or performing a reinsurance contract;
(b) the management of claims of an insurance undertaking or of a reinsurance undertaking on a professional basis, and loss adjusting and expert appraisal of claims;
(c) the mere provision of data and information on potential policyholders to insurance intermediaries, reinsurance intermediaries, insurance undertakings or reinsurance undertakings where the provider does not take any additional steps to assist in the conclusion of an insurance or reinsurance contract;
(d) the mere provision of information about insurance or reinsurance products, an insurance intermediary, a reinsurance intermediary, an insurance undertaking or a reinsurance undertaking to potential policyholders where the provider does not take any additional steps to assist in the conclusion of an insurance or reinsurance contract;
(2) A word or expression that is used in these Regulations and is also used in the Directive of 2016 shall, unless the context otherwise requires, have the same meaning in these Regulations that it has in that Directive.
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paragraphs: (1) These Regulations lay down rules for undertaking insurance distribution and reinsurance distribution by persons who undertake or wish to undertake either or both of those activities.
(2) Subject to paragraph (3), these Regulations shall not apply to ancillary insurance intermediaries carrying out insurance distribution activities where—
(a) the insurance is complementary to the good or service supplied by a provider, where such insurance covers—
(i) the risk of breakdown, loss of, or damage to, the good or the non-use of the service supplied by that provider, or
(ii) damage to, or loss of, baggage and other risks linked to travel booked with that provider,
(b) the amount of the premium paid for the insurance product does not exceed €600 calculated on a pro rata annual basis or, where the duration of that service is equal to, or less than, 3 months, the amount of the premium paid per person does not exceed €200.
(3) An insurance undertaking or insurance intermediary distributing insurance through an ancillary insurance intermediary exempt from the application of these Regulations in accordance with paragraph (2) shall ensure that the ancillary insurance intermediary—
(a) informs the customer, prior to the conclusion of the contract, about the identity, address and complaints procedures of the insurance undertaking or insurance intermediary concerned,
(b) has in place appropriate and proportionate arrangements to comply with Regulations 30 and 37 and to consider the demands and needs of the customer before the proposal of the contract, and
(c) provides the customer with the insurance product information document referred to in Regulation 34(6) prior to the conclusion of the contract.
(4) These Regulations do not apply to or in respect of—
(a) insurance and reinsurance distribution services provided in relation to risks and commitments arising in a country other than a Member State, or
(b) insurance and reinsurance distribution activities carried out in third countries.
(5) These Regulations do not affect the law of the State relating to insurance and reinsurance distribution undertaken by insurance and reinsurance distributors established in a third country and operating within the State under the principle of freedom to provide services, so long as equal treatment is guaranteed to all persons carrying out or authorised to carry out insurance and reinsurance distribution activities in the State.
(6)(a) As soon as practicable after becoming aware that an insurance or reinsurance distributor is encountering difficulties in establishing itself or carrying out insurance or reinsurance distribution activities in a third country, the Bank shall notify those difficulties to the Minister.
(b) The Minister shall, without delay, inform the Commission and EIOPA of any difficulties notified to him or her in accordance with subparagraph (a).
(7) The Bank shall monitor the insurance market, including the market for ancillary insurance products which are marketed, distributed or sold in, or from, the State.
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paragraphs: (1) The Bank is designated as the competent authority in the State for the purpose of the Directive of 2016.
(2) The Bank is designated as the single point of contact responsible for providing information on general good rules for the purpose of these Regulations and the Directive of 2016.
(3) Insurance or reinsurance distributors, or approved professional bodies, may cooperate with the Bank in accordance with Regulation 9(6).
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paragraphs: (1) The Bank shall publish on its website the national legal provisions (in these Regulations referred as the “general good rules”) concerning consumer protection which govern the carrying on of insurance and reinsurance distribution in the State.
(2) The Bank shall ensure that the administrative burden stemming from the general good rules is proportionate and shall update and monitor, on a regular basis, the general good rules to ensure they remain in conformity with this Regulation.
(3) The Bank shall have the power, where strictly necessary, to take appropriate and non-discriminatory measures to penalise irregularities committed in the State which are contrary to their general good rules, including the possibility of preventing the insurance, reinsurance or ancillary insurance intermediary concerned from carrying out new business in the State.
(4) The Bank, after informing the competent authority of the home Member State, shall have the power to take appropriate measures to prevent an insurance distributor established in that other Member State from carrying out activity in the State under the freedom to provide services or, where applicable, the freedom of establishment, where—
(a) the relevant activity is entirely or principally directed towards the State with the sole purpose of avoiding the legal provisions which would be applicable if that insurance distributor had its residence or registered office in the State, and
(b) its activity seriously endangers the proper functioning of insurance and reinsurance markets in the State with respect to the protection of consumers.
(5) Where the Bank and the competent authority of the home Member State disagree on the measures to be taken in accordance with paragraph (4), the Bank may refer the matter to EIOPA and request its assistance in accordance with Article 19 of Regulation (EU) No 1094/2010.
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paragraphs: (1) The Bank shall establish and maintain a register to be known as the Insurance Distribution Register (in this Part referred to as the “Register”) of all insurance, reinsurance and ancillary insurance intermediaries for which the Bank is the competent authority.
(2) The Bank may subdivide the Register into 2 or more registers if it thinks fit to do so.
(3) The Register shall—
(a) be compiled electronically and be available in a form that is readily accessible to the public, and
(b) contain information (in this Regulation referred to as “relevant information”) relating to registered insurance intermediaries, registered ancillary insurance intermediaries and registered reinsurance intermediaries, including, in the case of those intermediaries that are companies or partnerships, the names of the persons within the management of those intermediaries that are responsible for the insurance or reinsurance distribution.
(4) The Bank shall ensure that the Register—
(a) specifies the Member States in which each registered insurance intermediary, each registered ancillary insurance intermediary and each registered reinsurance intermediary has notified its intention to the Bank to carry on cross-border business in accordance with Part 4, and
(b) is kept up to date.
(5) The Bank shall provide the relevant information to EIOPA to enable EIOPA to establish, publish on its website and keep up-to-date a single electronic register containing records of insurance, reinsurance and ancillary insurance intermediaries which have notified their intention to the Bank to carry on cross-border business in accordance with Regulations 15 and 17.
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paragraphs: The Bank shall establish an online registration system for the purpose of this Part that—
(a) is easily accessible to the public generally, and
(b) allows completion of the registration form directly online.
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paragraphs: (1) A holder of a registration issued under the Insurance Mediation Regulations continues to be registered under these Regulations, other than where the registration has been withdrawn by the Bank.
(2) Subject to paragraph (3), a person who—
(a) is a certified person who has been deemed an authorised investment business firm in accordance with section 63 of the Act of 1995,
(b) is carrying out insurance distribution activities, and
(c) has not been registered as an insurance intermediary under the Insurance Mediation Regulations,
(3) Paragraph (2) shall only apply—
(a) where a certified person referred to in that paragraph submits an application for registration for the purposes of Regulation 9 on or before 30 September 2018, and
(b) until such time as the Bank determines whether to grant or refuse the application for registration in accordance with Regulation 10.
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paragraphs: (1) A person who wishes to be registered as an insurance, reinsurance or ancillary insurance intermediary shall make an application to the Bank in accordance with this Regulation where—
(a) in the case of a natural person, they are resident in the State, or
(b) in the case of a legal person, it has its registered office in the State, or if it is not required to have a registered office, it has its head office in the State.
(2) An application to the Bank under paragraph (1) shall—
(a) be in a form approved by the Bank and published on its website from time to time,
(b) contain such information and be accompanied by such documentation as the Bank requires, and
(c) be accompanied by the fee (if any) prescribed under section 32E of the Act of 1942 for the purposes of this Regulation.
(3) Paragraph (1) shall not apply to—
(a) insurance undertakings and their employees,
(b) reinsurance undertakings and their employees,
(c) persons, activities or operations, excluded from the application of these Regulations by virtue of Regulation 3, or
(d) the holder of a registration issued under the Insurance Mediation Regulations who is automatically registered under these Regulations by virtue of Regulation 8.
(4) The Bank shall take all reasonably practicable measures to ensure that persons who fail to comply with paragraph (1) cease to undertake insurance distribution or reinsurance distribution within the State and within other Member States.
(5) An insurance or reinsurance undertaking, or intermediary, which is supervised by the Bank, shall apply to register insurance, reinsurance or ancillary insurance intermediaries for which it is responsible with the Bank and shall ensure that the insurance, reinsurance or ancillary insurance intermediary concerned meets the conditions for registration set out in these Regulations.
(6) Insurance and reinsurance undertakings and intermediaries and approved professional bodies shall, on request of the Bank, cooperate with the Bank in registering insurance and reinsurance and ancillary insurance intermediaries and in the application of the requirements set out in Regulations 20 and 21.
(7) The Bank shall ensure that registration of insurance, reinsurance and ancillary insurance intermediaries is made subject to the fulfilment of the requirements set out in Regulations 20 and 21.
(8) The Bank shall not grant an application for registration by an insurance, reinsurance or ancillary insurance intermediary unless the following information has been provided:
(a) the identities of shareholders or members, whether natural or legal persons, that have a qualifying holding in the intermediary, and the amounts of those holdings;
(b) the identities of persons who have close links with the intermediary;
(c) information that shows that those holdings or close links do not prevent the effective exercise of the supervisory functions of the competent authority.
(9) Insurance and reinsurance undertakings and intermediaries shall only use the insurance and reinsurance distribution services of registered insurance and reinsurance intermediaries or ancillary insurance intermediaries including those referred to in Regulation 3(2).
(10) Nothing in this Regulation shall prevent—
(a) a person from making applications for registration as an insurance intermediary and registration as a reinsurance intermediary, or
(b) an intermediary from entering into a tied agency arrangement with an insurance or reinsurance undertaking or other intermediary, thereby acting as a tied insurance intermediary.
(11) In this Regulation, “tied insurance intermediary” means any person who—
(a) undertakes insurance or reinsurance distribution for and on behalf of one or more insurance or reinsurance undertakings or other intermediaries, in the case of insurance products that are not in competition,
(b) acts under the responsibility of those insurance or reinsurance undertakings or other intermediaries, and
(c) is subject to oversight of compliance with conditions for registration by the insurance or reinsurance undertaking or other intermediary on whose behalf it is acting.
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paragraphs: (1) On considering an application made under Regulation 9, the Bank shall register an applicant as an insurance, reinsurance or ancillary insurance intermediary, as the case may be, where it is satisfied that the applicant is, or will be, able to undertake the responsibilities that are imposed on insurance, reinsurance or ancillary insurance intermediaries by or under these Regulations but, if not so satisfied, it shall refuse the applicant’s application.
(2) The grant of a registration under paragraph (1) may be given unconditionally or subject to conditions or requirements other than those set out in Regulation 9(7).
(3) The Bank may, from time to time, remove or vary the conditions or requirements referred to in paragraph (2).
(4) On accepting a registration in respect of an application under paragraph (1), the Bank shall record the appropriate particulars of the applicant in the Register.
(5) The Bank shall refuse to register an insurance, reinsurance or ancillary insurance intermediary if the laws, regulations or administrative provisions of a third country governing one or more of the persons with which the insurance, reinsurance or ancillary insurance intermediary has close links, or the practical difficulties involved in the enforcement of those laws, regulations or administrative provisions, prevent the effective exercise of the Bank’s supervisory functions.
(6) The Bank may not refuse an application without giving the applicant an opportunity to make representations in writing as to why the application should not be refused.
(7) Where the Bank refuses an application, it shall promptly give to the applicant a written notice of refusal, which shall include a statement setting out the reasons for the refusal.
(8) The Bank shall consider applications made under these Regulations—
(a) within 3 months after the date of receipt by the Bank of the duly completed application, or
(b) where further information or records have been requested by the Bank in relation to the application, within 3 months after the date of receipt by the Bank of further information or records previously requested under Regulation 11.
(9) The Bank shall inform the applicant without delay whether an application has been granted or refused.
(10) A refusal by the Bank of an application for registration under paragraph (1), or the grant of an authorisation subject to a condition or requirement under paragraph (2), shall be an appealable decision for the purpose of Part VIIA of the Act of 1942.
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paragraphs: (1) At any time before the grant or refusal of an application for registration in accordance with Regulation 10, the Bank may request by notice, giving not less than 14 calendar days from the date of the notice, such further information or records relating to the insurance, reinsurance or ancillary insurance intermediary as may be necessary for the purpose of properly evaluating the application.
(2) Where a request referred to in paragraph (1) is not complied with within the period specified in the notice, the Bank may reject the application.
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paragraphs: (1) A registered insurance, reinsurance or ancillary insurance intermediary shall comply at all times with the requirements of its registration.
(2) The Bank shall regularly review the compliance by a registered insurance, reinsurance or ancillary insurance intermediary with its obligations under paragraph (1).
(3) An insurance, reinsurance and ancillary insurance intermediary or, where applicable, an insurance or reinsurance undertaking, shall notify the Bank in writing without undue delay of any material change in the information provided under Regulation 9(8).
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paragraphs: (1) The Bank may withdraw the registration of, and remove from the Register, an insurance, reinsurance or ancillary insurance intermediary that ceases to fulfil the requirements set out in Regulations 20 and 21.
(2) Subject to paragraph (4), the Bank may withdraw the registration of, and remove from the Register, an insurance, reinsurance or ancillary insurance intermediary on any of the following grounds:
(a) the intermediary has not undertaken insurance distribution or reinsurance distribution within the immediately preceding 6 months;
(b) the registration was obtained by means of a false or misleading representation;
(c) the intermediary has become subject to an insolvency process such as winding-up or bankruptcy;
(d) since the intermediary was registered, the circumstances under which the registration took place have changed to the extent that an application for registration would be refused had it been made in the changed circumstances;
(e) the intermediary, or if it is a body corporate or partnership, any person concerned in its direction or management, is convicted of—