Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on insurance mediation (recast)
Date: 2012-07-03
Institutions: European Commission
Subjects: access to a profession, consumer information, freedom to provide services, insurance claim, insurance company, insurance occupation, market access, reinsurance, right of establishment, single market

EUROPEAN COMMISSION 

Strasbourg, 3.7.2012  
COM(2012) 360 final 

2012/0175 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on insurance mediation  

(recast) 

(Text with EEA relevance) 

{SWD(2012) 191 final} 
{SWD(2012) 192 final} 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The Directive 2002/92/EC of the European Parliament and the Council on insurance 
mediation  (IMD1)1  is  the  only  EU  legislation  which  regulates  the  point  of  sale  of 
insurance  products  so  as  to  ensure  the  rights  of  the  consumer.  It  was  adopted  on  9 
December 2002 and had to be transposed by Member States by 15 January 2005. The 
Directive  is  a  minimum  harmonisation  instrument  containing  high  level  principles 
and has been implemented in the 27 Member States in substantially different ways. 
The  need  to  review  IMD1  was  already  acknowledged  during  the  implementation 
check carried out by the Commission in 2005-2008.  

Current  and  recent  financial  turbulence  has  underlined  the  importance  of  ensuring 
effective  consumer  protection  across  all  financial  sectors.  In  November  2010,  the 
G20  asked  the  OECD,  the  Financial  Stability  Board  (FSB)  and  other  relevant 
international  organisations  to  develop  common  principles  in  the  field  of  financial 
services  in  order  to  strengthen  consumer  protection.  The  draft  G20  high  level 
principles on financial consumer protection underline the need for proper regulation 
and/or supervision of all financial service providers and agents that deal directly with 
consumers.  These  principles  stipulate  that  consumers  should  always  benefit  from 
comparable standards of consumer protection. The current review of IMD1 should be 
seen in the light of these guidelines and related international initiatives. 

During the discussions in the European Parliament on the directive which regulates 
the  risk-based  approach  to  capitalisation  and  supervision  of  insurance  undertakings 
(Solvency II)2, adopted in 2009, a specific request was furthermore made to review 
IMD1.  Some  Members  of  the  Parliament  and  some  consumer  organisations 
considered  that  there  was  a  need  for  improved  policyholder  protection  in  the 
aftermath  of  the  financial  crisis  and  that  selling  practices  for  different  insurance 
products  could  be  improved.  In  particular,  strong  concerns  have  been  raised  with 
regard  to  the  standards  for  the  sale  of  life  insurance  products  with  investment 
elements.  In  order  to  ensure  cross-sectoral  consistency,  the  European  Parliament 
requested that the revision of IMD1 would take into account the ongoing revision of 
the  Markets  in  Financial  Instruments  Directive  (MiFID  II)3.  This  means  that, 
whenever  the  regulation  of  selling  practices  of  life  insurance  products  with 
investment  elements  is  concerned,  the  proposal  for  a  revised  Directive  (IMD2) 
should meet the same consumer protection standards as MiFID II.  

1.1. 

Objectives of the proposal 

The  revised  Directive  (IMD2)  seeks  to  improve  regulation  in  the  retail  insurance 
market  in  an  efficient  manner.  It  aims  at  ensuring  a  level  playing  field  between  all 

1 
2 

3 

JO L 9, p.3. 
Directive 2009/138/EC of 25 November 2009 on the taking-up and pursuit of the business of insurance 
and reinsurance (Solvency II), JO L 335, p.1 
Directive of the European Parliament and of the Council on markets in financial instruments repealing 
Directive 2004/39/EC of the European Parliament and of the Council (Recast); COM(2011) 656 final. 

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participants  involved  in  the  selling  of  insurance  products  and  at  strengthening 
policyholder protection. 

The  overarching  objectives  of  the  current  review  are  undistorted  competition, 
consumer  protection  and  market  integration.  In  concrete  terms,  the  IMD2  project 
should  achieve  the  following  improvements:  expand  the  scope  of  application  of 
IMD1  to  all  distribution  channels  (e.g.  direct  writers,  car  rentals,  etc.);  identify, 
manage  and  mitigate  conflicts  of  interest;  raise  the  level  of  harmonisation  of 
administrative  sanctions  and  measures  for  breach  of  key  provisions  of  the  current 
Directive;  enhance  the  suitability  and  objectiveness  of  advice;  ensure  sellers' 
professional  qualifications  match  the  complexity  of  products  sold;  simplify  and 
approximate  the  procedure  for  cross-border  entry  to  insurance  markets  across  the 
EU. 

1.2. 

Consistency with other policies and objectives of the Union 

The objectives of the proposal are consistent with the policies and objectives pursued 
by  the  Union.  The  Treaty  provides  for  action  to  ensure  the  establishment  and 
functioning of the internal market with a high level of consumer protection as well as 
the freedom to provide services.  

The  current  proposal  is  tabled  for  adoption  as  part  of  a  'Consumer  Retail  Package' 
together with the PRIPs proposal on investment products' disclosures 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 PRIPs4), and provisions on selling practices 
will be included in the revisions of the IMD1 and MiFID.  

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, MiFID II, and the PRIPs 
initiative. 

IMD2  will  regulate  selling  practices  for  all  insurance  products  from  general 
insurance  products  such  as  motor  insurance,  through  to  life  insurance  policies, 
including  those  which  contain  investment  elements,  e.g.  unit-linked  life  insurance 
products.  

IMD2  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 IMD1 will 
be raised significantly. Some parts of the new Directive will be reinforced by Level 2 
measures  in  order  to  align  the  rules  with  MiFID:  in  particular,  in  the  chapter 
regulating the distribution of life insurance policies with investment elements. 

4 

See  the  scope  in  the  Impact  Assessment  on  PRIPs:  http://ec.europa.eu/internal_market/finservices-
retail/docs/investment_products/29042009_impact_assessment_en.pdf 

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2. 

RESULTS OF CONSULTATION WITH INTERESTED PARTIES AND IMPACT ASSESSMENT 

the  Commission  Services 

The  Commission  Services  requested  advice  from  the  European  Insurance  and 
Occupational  Pensions  Authority  (EIOPA)  (formerly  CEIOPS)  on  numerous  issues 
relating to the revision of the IMD. EIOPA's final report was delivered in November 
2010.5  During  2010-2011, 
regularly  met  with 
representatives  of  the  insurance  sector,  consumer  organisations  and  supervisors  to 
discuss the forthcoming review. A public consultation relating to the IMD1 revision 
was carried out by the Commission Services from 26 November 2010 to 28 February 
2011. The results of the consultation were also broadly supportive of the direction of 
the  revision  as  outlined  by  the  Commission  Services.6  On  10  December  2010,  a 
public  hearing  was  held  on  IMD2.  The  discussion  focused  on  the  scope  of  the 
Directive,  information  requirements  for  insurance  intermediaries,  conflicts  of 
interests,  cross-border  trade,  and  professional  qualification  requirements.7  On  11 
April 2011 a meeting was organised with experts from Member States and EIOPA to 
discuss the results of the public consultation and the possible structure and contents 
of IMD2. The large majority of the stakeholders present at these meetings supported 
the direction of the revision of IMD1 as outlined by the Commission Services.  

In  line  with  its  'Better  Regulation'  policy,  the  Commission  conducted  an  impact 
assessment  of  policy  alternatives.  Several  specific  studies  ordered  by  different 
Commission  Services  were  used  to  prepare  the  impact  assessment.  Firstly,  DG 
MARKT contracted PricewaterhouseCoopers (PWC) to conduct a study to provide a 
comprehensive overview of the functioning of insurance distribution in the EU. The 
report  was  finalised  in  July  2011  and  published  on  the  Commission's  website8. 
Secondly,  this  proposal  takes  into  account  the  results  of  a  study  commissioned  in 
2010 on the costs and benefits of potential changes to distribution rules for insurance 
products  and  for  insurance  investment  products.9  Thirdly,  the  findings  of  a  study 
seeking  to  assess  the  quality  of  advice  being  offered  across  the  EU  have  been 
considered.10  A  fourth  study  seeking  insights  from  behavioural  economics  on  the 
different  factors  relating  to  investor  decision  making  has  also  been  taken  into 
account.11 

The  policy  options  discussed  in  the  impact  assessment  were  assessed  against 
different  criteria:  market  integration  for  market  players,  customer  protection  and 
confidence,  a  level  playing  field  for  various  market  players,  and  cost-effectiveness, 
i.e.  the  extent  to  which  the  options  achieve  the  sought  objectives  and  facilitate  the 
operation of insurance markets in a cost-effective and efficient way. 

5 

6 

7 

8 

9 
10 
11 

of 

the 

results 

hearing 

published: 

http://ec.europa.eu/internal_market/consultations/2010/insurance-

https://www.ceiops.eu/fileadmin/tx_dam/files/publications/reports/IMD-advice-20101111/20101111-
CEIOPS-Advice-on-IMD-Revision.pdf 
The 
are 
mediation_en.htm 
The  minutes 
following  website: 
http://ec.europa.eu/internal_market/insurance/docs/mediation/20101210hearing/panel-summary_en.pdf. 
Cost  analysis  is  based  on  figures  given  by  the  PwC  study  and  revised  by  Commission  Services.  The 
study covered five Member States (BE, DE, FR, FI, UK). Some participants were unwilling or unable to 
provide  precise  estimation  of  costs.  The  Commission  Services'  assessment  of  data  suggests  some 
respondents provided figures that appear inflated without clear explanation or justification.  
http://ec.europa.eu/internal_market/consultations/docs/2010/prips/costs_benefits_study_en.pdf 
http://ec.europa.eu/consumers/rights/docs/investment_advice_study_en.pdf 
http://ec.europa.eu/consumers/strategy/consumer_behaviour_en.htm 

found 

could 

the 

on 

be 

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Overall,  the  estimate  of  the  administrative  burden  on  the  basis  of  the  above 
mentioned PWC study and industry statistics, reworked by the Commission Services, 
is  that  in  view  of  the  large  number  of  undertakings  affected  (about  1  million),  the 
proposal will result in a relatively moderate cost of, on average, about 730 euro per 
undertaking. 

The  impact  assessment  work  finished  in  2012.  The  European  Commission  Impact 
Assessment Board's recommendations were taken on board especially concerning the 
impact on SME's. For instance, SME intermediaries which are currently outside the 
scope  and  which  will  be  brought  into  scope  by  the  current  proposal  are  essentially 
businesses whose principal activity is other than insurance mediation (so mediation is 
purely  ancillary  to  their  main  business  such  as  travel  agents  or  car  rentals).  These 
intermediaries will be subject to a light touch regime (declaration procedure, Article 
4 of the current proposal) as a proportionate approach to the ancillary nature of the 
mediation they perform. In general, proportional requirements have been introduced 
to  take  account  of  SME's  concerns  and  to  respect  the  principle  'less  complex 
products,  less  rules'.  For  instance,  some  investment  products  are  wrapped  as  life 
insurance policies. A more stringent regime for the selling practices of those products 
(life insurance policies with investment elements (insurance investment products or 
insurance PRIPs)) will be introduced (Chapter VII). 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

3.1. 

Legal basis 

The proposal is based on Article 53(1) and 62 of the TFEU. It will replace Directive 
2002/92/EC  and  deals  with  the  harmonisation  of  national  provisions  on  insurance 
intermediaries  and  other  sellers  of  insurance  products.  It  brings  within  its  scope 
certain  ancillary  sellers  and  after-sales  businesses  such  as  loss  adjusters  and  claims 
handlers. It clarifies the exercise of the freedom of establishment, of the freedom to 
provide  services,  and  the  powers  of  supervisory  authorities  of  home  and  host 
Member States in this regard. The main objective and subject-matter of this proposal 
is  to  harmonise  national  provisions  concerning  conduct  of  business  rules  for  all 
sellers  of  insurance  products  and  other  market  entities  present  on  insurance  and 
reinsurance  markets,  the  conditions  for  their  governance,  and  their  supervisory 
framework. 

3.2. 

Subsidiarity and proportionality 

According  to  the  principle  of  subsidiarity  (Article  5(3)  of  the  TEU),  action  at  EU 
level should be taken only when the aims envisaged cannot be achieved sufficiently 
by  Member  States  alone  and  can  therefore,  by  reason  of  the  scale  or  effects  of  the 
proposed action, be better achieved by the EU. 

Most of the issues covered by the revision are already covered by the current IMD1 
legal framework. Further, insurance markets are increasingly cross-border in nature. 
The conditions under which firms and operators can compete in this context, whether 
they be rules on transparency or customer protection, need to be comparable across 
borders and are all at the core of IMD1 today. Action is now required at European 
level  in  order  to  update  and  modify  the  regulatory  framework  laid  out  by  IMD1  in 
its 
order 

into  account  developments 

insurance  markets  since 

take 

to 

in 

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implementation. Because of this integration, isolated national intervention would be 
far  less  efficient  and  would  lead  to  a  fragmentation  of  markets,  resulting  in 
regulatory arbitrage and distortion of competition.  

EIOPA  should  play  a  key  role  in  the  implementation  of  the  new  EU-wide 
framework. Specific competences for EIOPA are necessary in order to improve the 
functioning of the insurance markets. 

The  proposal  takes  full  account  of  the  principle  of  proportionality,  namely  that  EU 
action  should  be  adequate  to  reach  the  objectives  and  not  go  beyond  what  is 
necessary. It is compatible with this principle, taking into account the right balance 
of the public interest at stake and the cost-efficiency of the measures: in particular, 
the need to balance customer protection, efficiency of the markets and costs for the 
industry have been central in laying out these requirements. 

In  view  of  that  principle  the  proposal  differentiates  between  the  different  selling 
channels  for  insurance  products  and  imposes  less  burdensome  registration  and 
professional  qualification  requirements  on  those  selling  simple  insurance  products. 
For  example,  the  sellers  of  ancillary  insurance  products  of  low  risk,  such  as  car 
rentals and travel agents are subject to a simplified declaration procedure instead of 
registration as insurance intermediaries. The proposal also differentiates between the 
life  insurance  products  and  the  general  insurance  products  in  respect  of  the 
remuneration transparency requirements. These proportionality measures are taken in 
view of the different levels of complexity and consumer risks related to the different 
insurance  products  and  also  in  view  of  the  intention  to  reduce  the  administrative 
burden for the SMEs selling insurance products. 

3.3. 

Compliance with Articles 290 and 291 TFEU 

On  23  September  2009,  the  Commission  adopted  proposals  for  Regulations 
establishing EBA, EIOPA, and ESMA. In this respect, the Commission refers to the 
Statements in relation to Articles 290 and 291 TFEU it made at the adoption of the 
Regulations establishing the European Supervisory Authorities, according to which: 
'As  regards  the  process  for  the  adoption  of  regulatory  standards,  the  Commission 
emphasises the unique character of the financial services sector, following from the 
Lamfalussy  structure  and  explicitly  recognised  in  Declaration  39  to  the  TFEU. 
However,  the  Commission  has  serious  doubts  whether  the  restrictions  on  its  role 
when  adopting  delegated  acts  and  implementing  measures  are  in  line  with  Articles 
290 and 291 TFEU.' 

3.4. 

References to other directives 

Since  Directive  2009/138/EC  on  the  taking-up  and  pursuit  of  the  business  of 
insurance and reinsurance (Solvency II) is currently not yet applicable; this proposal 
refers to the definitions as laid down in Directive 73/239/EEC, Directive 2002/83/EC 
and Directive 2005/68/EC. Directives 73/239/EEC, 2002/83/EC and 2005/68/EC will 
be repealed by Directive 2009/138/EC. 

3.5. 

Detailed explanation of the proposal 

Chapter I – Scope and Definitions  

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Article  1  enlarges  the  scope  of  IMD1  to  include  sales  of  insurance  contracts  by 
insurance  and  reinsurance  undertakings  without  the  intervention  of  an  insurance 
intermediary.  It  also  covers  claims  management  activities  by  and  for  insurance 
undertakings, loss adjusting and expert appraisal of claims.  

The  'de  minimis'  exclusion  from  the  scope  in  IMD1  remains  the  same  (seller  of 
insurance  policies  ancillary  to  sale  of  goods,  under  500  euro  premium  on  an 
annualised  basis  and  satisfying  other  criteria  under  the  exemption)  except  that  the 
premium limit on an annualised basis is increased to €600 pro rata (less than €2 per 
day).  The  above  mentioned  €2  is  the  amount  of  the  premium  per  contract  and  per 
day. For instance, opticians selling complementary insurances on glasses still remain 
out of scope of the Directive.  

The  insurance  policies  sold  ancillary  to  the  sale  of  services  fall  in  the  scope  of  the 
Directive after the revision. This is for example the case of travel insurance policies 
sold  by  travel  agents,  general  insurance  policies  sold  by  car  rental  companies  and 
leasing companies. 

Article 2 restates the definitions in IMD 1 with some changes and new definitions.  

•  'Insurance  mediation'  is  extended  to  include  the  extension  of  scope  in  Article  1 
and  specifies  that  certain  activities  by  insurance  aggregator  websites  constitute 
insurance  mediation.  The  activity  of  'introducing'  is  removed.  'Reinsurance 
mediation' is amended likewise. 

•  'Insurance investment products' are defined to follow the definition of 'investment 
product' in the Regulation on key information documents for investment products 
(Regulation on PRIPs). 

•  'Tied insurance intermediary' is extended to include intermediaries working under 

the responsibility of another insurance intermediary.  

•  'Advice' is defined as the provision of a personal recommendation to a customer, 

on request or otherwise. 

•  'Professional  customer'  is  defined  for  the  purposes  of  exclusion  from  the 

information provisions. 

•  'Cross-selling practice' defines a practice where two or more products are bundled 

together in a single sale.  

•  'Contingent commission' is defined as a commission where the amount payable is 

based on the achievement of agreed targets. 

•  'Close  links'  defines  arrangements  with  connected  persons  and  arrangements 

which might affect a supervisor's ability to supervise effectively. 

•  'Remuneration'  is  defined  to  include  not  only  payments  (fees,  commission,  etc.) 

but also economic benefits of any kind. 

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•  The  definitions  of  'home  Member  State',  'host  Member  State',  'insurance 
intermediary',  'reinsurance  intermediary'  and  'durable  medium'  are  the  subject  of 
clarifying amendments. 

Chapter II - Registration requirements 

Article  3  leaves  the  registration  requirements  of  IMD1  largely  unchanged,  but 
requires  the  establishment  of  a  single  electronic  register  by  EIOPA  (linking  of 
national  databases)  and  requires  disclosure  of  certain  arrangements  with  other 
persons.  This  single  electronic  register  shall  function  as  a  portal  linking  back  to 
national  registers.  It  also  exempts  from  registration  persons  within the scope of the 
declaration procedure (see Article 4). 

Chapter III - Declaration procedure  

Article  4  establishes  a  simplified  procedure  which  exempts  two  groups  of  persons 
from  the  registration  procedure  mentioned  above,  enabling  them  to  carry  on 
mediation activities by way of a simple declaration. They are  

•  those who conduct insurance mediation as an activity ancillary to their principal 
professional  activity,  and  who  meet  certain  other  conditions  (such  as  travel 
agents). Broadly, the other conditions are that the products are complementary to 
another product or service, do not cover life assurance or liability risks other than 
incidental cover, and  

•  those whose activities are limited to the professional management of claims and to 

loss adjustment. 

The declaration procedure mainly covers travel agents, car rentals selling insurance 
products as well as loss adjusters and claim handlers. 

Chapter IV - Freedom to provide services and freedom of establishment 

Articles 5, 6, and  7 reflect the provisions in Article 5 of IMD1, the revised MiFID 
proposal  and  the  Luxembourg  Protocol12.  They  also  address  the  division  of 
competence  between  Home  and  Host  Member  State  supervisors,  particularly  in 
situations  where  an  insurance  or  reinsurance  intermediary  is  not  meeting  its 
obligations when transacting business in the Host Member State.  

Chapter V – Other organisational measures 

Article  8  sets  out  the  professional  and  organisational  requirements  that  comprise 
Article  4  in  IMD1:  requirement  to  have  appropriate  knowledge  and  ability; 
requirement  to  be  of  good  repute;  requirement  to  hold  professional  indemnity 
insurance  and  measures  to  protect  against  the  intermediary's  inability  to  transfer 
premium  to  the  insurance  undertaking  or  claims  money  or  return  premiums  to  the 
insured.  It  also  includes  a  requirement  for  continuous  professional  development.  In 
order  to  achieve  a  proportionate  impact,  the  rules  applying  to  those  pursuing 

12 

Protocol Relating to the Cooperation of the Competent Authorities of the Member States of the European Union in 
Particular Concerning the Application of Directive 2002/92/EC of the European Parliament and of the Council of 9 
December 2002 on Insurance Mediation 

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intermediation activities on an ancillary basis, or whose activities are limited to the 
professional  management  of  claims,  will  be  proportionate  to  the  complexity  of  the 
product sold. Accordingly, Article 8 is not applied in full to such intermediaries. 

The  Commission  is  empowered  to  adopt  delegated  acts  to  specify  the  notion  of 
adequate knowledge and ability. 

Article  9  concerns  the  publication  of  general  good  rules.  This  article  has  changed 
from Article 6 in IMD1 and now requires Member States to publish the general good 
rules and requires EIOPA to collect and publish information about such rules (for an 
indicative  exposition  of  the  principles  of  general  good  in  relation  to  the  Third 
Insurance  Directives,  see  the  Commission's  Interpretative  Communication  on 
freedom  to  provide  services  and  the  general  good  in  the  insurance  sector  2000/C 
43/03). 

Articles  10  to  12  restate  the  former  Articles  7,  9  and  10,  on  competent  authorities, 
exchange of information between Member States and complaints. 

Article 13 concerns procedures for the out-of-court settlement of disputes involving 
customers, and strengthens the former Article 11 of IMD1, by requiring (rather than 
encouraging) Member States to set up procedures and ensure participation in them.  

Article 14 concerns the restriction on the use of intermediaries. It extends the former 
Article  3(6)  of  IMD1  to  reinsurance  undertakings  and  insurance  and  reinsurance 
intermediaries, and takes into account the declaration procedure (see Article 4). 

Chapter VI – Information requirements and conduct of business rules 

Articles  15  to 20 restate  the disclosure requirements, the large risks  exemption,  the 
stricter provisions in ex-Article 12, and the information conditions of ex-Article 13. 
They also set out the following additional provisions:  

•  general principle for intermediaries that they should act in the best interest of their 

customers; 

•  similar information requirements for insurance undertakings; 

•  a requirement to disclose the basis and amount of the remuneration by insurance 

intermediaries;  

•  a requirement to disclose the amount of any variable remuneration received by the 

sales employees of insurance undertakings and intermediaries;  

•  a mandatory 'full disclosure' regime for the sale of life insurance products and an 
'on–request'  regime  (i.e.  on  customer's  demand)  for  the  sale  of  non-life  products 
with  a  transitional  period  of  5  years.  After  the  expiry  of  the  5  years  transitional 
period, the full disclosure regime will automatically apply for the sale of non-life 
products  as  well.  During  the  transitional  period,  the  proposal  differentiates 
between  the  life  and  non-life  products.  In  case  of  the  sale  of  life  products,  the 
remuneration (commission) tends to be higher. Also, life products are also closer 
to  investment  products  and  buying  such  a  product  constitutes  a  long-term 
investment.  For  non-life  products,  the  situation  is  different.  The  remuneration  is 

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usually  lower  (commission  is  about  5%-10%  of  the  premium)  and  the  product 
involves less risks. In most of the EU countries, consumer can switch to another, 
substitutable product very easily and on an affordable manner. 

•  an obligation on insurance undertakings and intermediaries to give the customer, 
prior  to  the  conclusion  of  a  contract,  sufficient  information  about  the  insurance 
product to allow him to make an informed decision;  

•  a requirement that EIOPA ensures that information it receives relating to stricter 
national  provisions  is  communicated  to  insurance  undertakings,  intermediaries 
and consumers; and  

•  further exceptions to the general requirement for information to be given through 

a durable medium. 

today 

increasingly 

In  terms  of  achieving  higher  consumer  protection,  these  provisions  offer  higher 
transparency compared to the original Directive (2002/92/EC) regarding the nature, 
the structure and the amount of the intermediary's remuneration and provide clarity 
with  regard  to  the  principal-agent  relationship,  including  how  this  may  impact  on 
advice. Consumer protection has moved forward significantly over the last years, and 
information-seeking  and  cost-conscious. 
consumers  are 
Disclosure of the different elements of the total price - including the intermediary's 
remuneration  -  will  enable  the  customer  to  choose  on  the  basis  of  insurance  cover, 
linked  services  (for  example  if  the  intermediary  does  claims-handling)  and  price. 
This will further ensure suitable, cost-efficient products and intermediary services for 
consumers.  Mandatory  disclosure  of  remuneration  should  have  positive  effects  on 
competition in insurance distribution as it would ensure that consumers receive wider 
information on products and costs, as well as possible conflicts of interest. It will be 
easier for consumers to compare insurance covers and prices between products sold 
through  different  distribution  channels.  Several  EU  Member  States  do  already 
require  remuneration  disclosure  for  some  insurance  products,  and  MiFID  II  will 
require this for investment products. This new information will give consumers more 
complete  information  about  what  services  the  intermediary  performs  and  what  are 
the  related  costs.  The  remuneration  disclosure  must  however  be  implemented  in  a 
way  that  the  comparison  between  intermediaries  and  direct  writers  is  ensured. 
Information  about  the  price  of  cover  as  well  as  the  distribution  costs  will  provide 
comparability. In particular - for avoiding situations of conflict of interest insurance 
undertakings  should  also  disclose  the  basis  for  the  calculation  of  their  employees' 
variable  remuneration  resulting  from  the  sale  of  a  product.  These  provisions 
furthermore  address  certain  key  problems  related  to  cross-border  provision  of 
insurance intermediary services: lack of legal certainty and lack of comparability. If 
the  harmonised  legal  framework  is  improved,  intermediaries  as  well  as  their 
customers  may  more  readily  take  the  step  of  selling  or  buying  insurance  products 
cross-border.  Improved  disclosure  will  facilitate  comparison  between  products  and 
distribution  channels  (as  mentioned  above),  which  is  today  particularly  difficult  in 
cross-border trade situations.  

Article 21 introduces a provision on bundling products together and requires that the 
customer  be  informed  that  the  products  may  be  purchased  separately  and  be  given 
certain information in this regard. It also requires EIOPA to develop, and thereafter 
update, guidelines for the supervision of such practices. 

EN 

10 

   EN 

Chapter  VII  –  Additional  customer  protection  requirements  in  relation  to 
insurance investment products  

Article  22  covers  the  scope  of  these  additional  provisions,  applying  them  to  an 
insurance intermediary or undertaking when they sell insurance investment products. 

Article 23 contains additional conflicts of interest provisions, requiring such conflicts 
to be identified. It gives the Commission power by delegated act to  

•  define steps that may be required to identify, prevent, manage and disclose such 

conflicts; and 

•  to  establish  criteria  for  specifying  types  of  conflicts  which  may  damage  the 

interests of customers. 

Article 24 is based on Article [23] of MiFID II. It sets out the MiFID II requirement 
to  

•  act  honestly  fairly  and  professionally  in  accordance  with  the  best  interests  of 

customers; 

•  ensure that information is fair clear and not misleading; 

•  provide  information  about  the  insurance  undertaking  or  intermediary  and  its 
services  (in  particular  whether  any  advice  is  provided  on  an  independent  basis), 
about the scope of any market analysis (whether on-going suitability  assessment 
will  be  provided),  about  proposed  products  and  investment  strategies,  and  about 
costs. 

It  also  specifies  the  basis  on  which  advice  may  be  said  to  be  independent,  which 
includes  a  requirement  as  to  the  assessment  of  products  on  the  market  and  a 
requirement not to accept remuneration from third parties. 

The  Commission  is  empowered  to  adopt  delegated  acts  to  ensure  compliance  with 
this article. 

Article 25 sets out how suitability and appropriateness is to be assessed, and requires 
information  to  be  obtained  from  the  customer.  For  non-advised  sales,  the 
intermediary or undertaking must obtain information about a customer's knowledge 
and experience to determine the appropriateness of the product for him. For advised 
sales,  it  must  obtain  the  customer's  financial  situation  and  investment  objectives  to 
determine suitability. Where a product is not appropriate or suitable, as the case may 
be, it must warn the customer of this. The seller must also keep records of the terms 
on  which  it  will  provide  services  to  the  customer,  and  provide  reports  to  the 
customer.  The  Commission  is  empowered  to  adopt  delegated  acts  to  ensure 
compliance. 

Chapter VIII – Sanctions 

Article  26  requires  Member  States  to  ensure  that  effective,  proportionate  and 
dissuasive administrative sanctions and measures are taken by competent authorities 
for breach of the national provisions adopted pursuant to the Directive.  

EN 

11 

   EN 

Administrative sanctions and measures must apply to those natural or legal persons 
which, under national law, are responsible for a breach. 

Competent  authorities  must  be  given  all  necessary  investigatory  powers,  and  must 
co-operate on cross-border cases. 

Article 27 requires publication of the sanctions or measures imposed for breaches. 

Article 28 specifies certain breaches and sets out the administrative sanctions which 
apply to the intermediaries including withdrawal of registration, bans against persons 
responsible for the exercise of management functions, and pecuniary sanctions of up 
to  twice  as  much  as  the  benefit  derived  from  the  breach  if  that  benefit  can  be 
determined. 

Criminal sanctions are not covered by this proposal. 

Article  29  sets  out  the  factors  to  take  into  account  in  imposing  sanctions  and 
measures, including benefits derived from the breach; losses caused to third parties, 
and the level of cooperation of the responsible person, and requires EIOPA to issue 
guidelines in respect of the sanctions. It also requires communication of any sanction 
or  measures  to  the  intermediary  or  undertaking,  together  with  justification  of  that 
sanction. 

Article 30 requires effective mechanisms to encourage reporting of breaches and an 
appropriate  protection  for  whistle-blowers  and  their  personal  data,  as  well  as  the 
protection of data of natural persons allegedly responsible for breaches. 

Article 31 requires annual reporting of aggregate information regarding breaches to 
EIOPA  as  well  as  publication  of  that  information  by  EIOPA.  The  Commission  is 
empowered to adopt implementing technical standards in this respect, which EIOPA 
is to develop and submit to the Commission [6] months after the publication of the 
Directive.  

Chapter IX – Final provisions 

Articles  32  to  39  restate  (updated  where  relevant)  the  final  provisions  in  IMD1 
concerning the right to apply to the courts, transposition and entry into force, repeal 
of prior legislation and addressees. In addition, Articles 33 and 34 set out conditions 
applying  to  the  Commission's  power  to  adopt  delegated  acts  as  specified  in  the 
Directive,  and  Article  35  provides  a  process  for  review  and  evaluation  by  the 
Commission of the Directive after its entry into force. This review shall in particular 
consider  the  impact  of  the  disclosure  rules  in  Article  17(2)  on  non-life  insurance 
intermediaries that are small and medium-sized undertakings. 

4. 

BUDGETARY IMPLICATION 

Specific  budget  implications  for  the  Commission  are  also  assessed  in  the  financial 
statement  accompanying  this  proposal.  The  specific  budget  implications  of  the 
proposal  relate  to  tasks  allocated  to  EIOPA  as  specified  in  the  legislative  financial 
statement accompanying this proposal. 

EN 

12 

   EN 

The proposal has implications for the Community budget. 

EN 

13 

   EN 

(cid:208) 2002/92/EC (adapted) 

2012/0175 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on insurance mediation  

(recast) 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community ⌦ on the Functioning of 
the  European  Union ⌫,  and  in  particular  Articles  47(2)  ⌦ 53(1) ⌫  and  Article  55 
⌦ 62 ⌫ thereof,  

Having regard to the proposal from the European Commission, 

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

(cid:216) new 

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

(cid:208) 2002/92/EC 

After consulting the European Data Protection Supervisor, 

(cid:216) new 

Acting in accordance with the (cid:214) ordinary legislative  procedure laid down in Article 251 of 
the Treaty, 

(cid:208) 2002/92/EC 
(cid:214) new 

EN 

14 

   EN 

 
 
 
 
 
Whereas: 

(cid:216) new 

(1) 

(2) 

A  number  of  amendments  are  to  be  made  to  Directive  2002/92/EC  of  the  European 
Parliament  and  the  Council  of  9  December  2002  on  insurance  mediation13.  In  the 
interests of clarity, that Directive should be recast. 

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. 

(3) 

Insurance  and  reinsurance  intermediaries  play  a  central  role  in  the  distribution  of 
insurance and reinsurance products in the Community ⌦ Union ⌫. 

(cid:208) 2002/92/EC recital 1 (adapted) 

(cid:208) 2002/92/EC recital 2 

A  first  step  to  facilitate  the  exercise  of  freedom  of  establishment  and  freedom  to  provide 
services  for  insurance  agents  and  brokers  was  made  by  Council  Directive  77/92/EEC  of  13 
December 1976  on  measures  to  facilitate  the  effective exercise of freedom of  establishment 
and freedom to provide services in respect of the activities of insurance agents and brokers (ex 
ISIC Group 630) and, in particular, transitional measures in respect of those activities14. 

Directive  77/92/EEC  was  to  remain  applicable  until  the  entry  into  force  of  provisions 
coordinating national rules concerning the taking-up and pursuit of the activities of insurance 
agents and brokers. 

(cid:208) 2002/92/EC recital 3 

13 
14 

OJ L 9, 15.1.2003, p. 3. 
OJ L 26, 31.1.1977, p. 12. Directive as last amended by the Act of Accession of 1994. 

EN 

15 

   EN 

 
 
 
 
                                                 
Commission  Recommendation  92/48/EEC  of  16  December  1991  on 
insurance 
intermediaries15 was largely followed by Member States and helped to bring closer together 
national  provisions  on 
insurance 
intermediaries. 

the  professional  requirements  and  registration  of 

(cid:208) 2002/92/EC recital 4 

(cid:208) 2002/92/EC recital 9 
(cid:214) new 

(4) 

Various  types  of  persons  or  institutions,  such  as  agents,  brokers  and  'bancassurance' 
operators,  (cid:214) insurance  undertakings,  travel  agents  and  car  rental  companies   can 
distribute  insurance  products.  Equality  of  treatment  between  operators  and  customer 
protection requires that all these persons or institutions be covered by this Directive. 

(cid:216) new 

(5) 

(6) 

(7) 

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,  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.  

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).  

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.  

(8) 

However,  Tthere  are  still  substantial  differences  between  national  provisions  which 
create  barriers  to  the  taking-up  and  pursuit  of  the  activities  of  insurance  and 

(cid:208) 2002/92/EC recital 5 

15 

OJ L 17, 28.1.1992, p. 32. 

EN 

16 

   EN 

 
 
 
 
                                                 
reinsurance intermediaries in the internal market. It is therefore appropriate to replace 
Directive 77/92/EEC with a new directive. 

(cid:216) new 

(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.  Measures  to  protect  customers  should  be 
adapted to the particularities of each category of customers (professional or other). 

(cid:208) 2002/92/EC recital 11 (adapted) 
(cid:214) new 

(10)  This Directive should apply to persons whose activity consists in ⌦ of ⌫ providing 
insurance  (cid:214) 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. 

(cid:216) new 

(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. 

(cid:208) 2002/92/EC recital 12 

(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.  

EN 

17 

   EN 

 
 
 
 
(cid:208) 2002/92/EC recital 13 
(cid:214) new 

(13)  This  Directive  should  not  apply  to  persons  practising  insurance  mediation  as  an 
ancillary activity under certain strict conditions (cid:214) restrictions regarding the policy, in 
particular  the  knowledge  required  to  sell  it,  the  risks  covered  and  the  amount  of 
premium . 

(cid:208) 2002/92/EC recital 10 (adapted) 

(14)  This  Directive  contains  a  definition  of  ⌦ defines ⌫  'tied  insurance  intermediary' 
which  takes  into  ⌦ to  take ⌫  account  of  the  characteristics  of  certain  Member 
States'  markets  and  whose  purpose  is  to  establish  the  conditions  for  registration 
applicable to such intermediaries. This definition is not intended to preclude Member 
States from having similar concepts in respect of insurance intermediaries who, while 
acting for and on behalf of an insurance undertaking and under the full responsibility 
of  that  undertaking,  are  entitled  to  collect  premiums  or  amounts  intended  for  the 
customer in accordance with the financial guarantees laid down by this Directive. 

(cid:208) 2002/92/EC recital 14 
(cid:214) new 

(15) 

Insurance  and  reinsurance  intermediaries  (cid:214) who  are  natural  persons   should  be 
registered  with  the  competent  authority  of  the  Member  State  where  they  have  their 
residence or their head office, provided that they meet strict professional requirements 
in  relation  to  their  competence,  good  repute,  professional  indemnity  cover  and 
financial  capacity;  (cid:214) 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.  

(cid:208) 2002/92/EC recital 6 and recital 
15 (adapted) 
(cid:214) new 

(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  Treaty.  Such  ⌦ Accordingly, ⌫  registration  (cid:214) 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. 

EN 

18 

   EN 

 
 
 
 
(cid:208) 2002/92/EC recital 16 (new) 

(17)  Appropriate sanctions are needed against persons exercising the activity of insurance 
or  reinsurance  mediation  without  being  registered,  against  insurance  or  reinsurance 
undertakings  using 
intermediaries  and  against 
intermediaries  not  complying  with  national  provisions  adopted  pursuant  to  this 
Directive. 

the  services  of  unregistered 

(cid:216) new 

(18) 

In  order  to  enhance  transparency  and  facilitate  cross-border  trade,  EIOPA  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. 

(20)  Member  States  should  not  apply 

the  registration  requirements 

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. 

to 

(21)  The inability of insurance intermediaries to operate freely throughout the Community 
⌦ Union ⌫ hinders the proper functioning of the single market in insurance. 

(cid:208) 2002/92/EC recital 7 (adapted) 

(cid:216) new 

(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 

EN 

19 

   EN 

 
 
 
 
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.  

(cid:208) 2002/92/EC recital 8 
(cid:214) new 

(23)  The coordination of national provisions on professional requirements and registration 
of  persons  taking  up  and  pursuing  the  activity  of  insurance  (cid:214) or  reinsurance  
mediation  can  therefore  contribute  both  to  the  completion  of  the  single  market  for 
financial services and to the enhancement of customer protection in this field. 

(cid:216) new 

(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 learning16 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. 

(cid:208) 2002/92/EC recital 17 

16 

OJ C 111. 6.5.2008.. p.1. 

EN 

20 

   EN 

 
 
 
                                                 
(cid:208) 2002/92/EC recital 22 (adapted) 
(cid:214) new 

(28)  There  is  a  need  for  suitable  ⌦ appropriate⌫  and  effective  (cid:214) out-of-court  
complaint  and  redress  procedures  in  the  Member  States  in  order  to  settle  disputes 
between  insurance  intermediaries  (cid:214) or  undertakings   and  customers,  using,  where 
appropriate,  existing  procedures.  (cid:214) 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.   

(cid:208) 2002/92/EC recital 23 
(cid:214) new 

Without  prejudice  to  the  right  of  customers  to  bring  their  action  before  the  courts, 
Member States should (cid:214) ensure that ADR entities dealing with disputes referred to 
under this Directive  encourage public or private bodies established with a view to 
settling  disputes  out-of-court,  to  cooperate  in  resolving  cross-border  disputes. 
(cid:214) Member  States  should  encourage  ADR  entities  dealing  with  such  disputes  to 
become  part  of  FIN-NET17.   Such  cooperation  could  for  example  be  aimed  at 
enabling customers to contact extra-judicial bodies established in their Member State 
of  residence  about  complaints  concerning  insurance  intermediaries  established  in 
other  Member  States.  The  setting  up  of  the  FIN-NET  network  provides  increased 
assistance  to  consumers  when  they  use  cross-border  services.  The  provisions  on 
procedures should take into account Commission Recommendation 98/257/EC of 30 
March  1798  on  the  principles  applicable  to  the  bodies  responsible  for  out-of-court 
settlement of consumer disputes18. 

(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 

(cid:216) new 

17 
18 

http://ec.europa.eu/internal_market/fin-net/index_en.htm 
OJ L 113, 13.4.1998, p. 31. 

EN 

21 

   EN 

 
 
 
                                                 
Member States to provide for rules to ensure that such conflicts do not adversely affect 
the interests of the customer. 

(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. 

(31) 

(32) 

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. 

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. 

(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. 

(34) 

In order to avoid mis-selling cases, if necessary, the sale of insurance products should 
be accompanied with honest and professional advice. 

(35) 

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

(cid:208) 2002/92/EC recital 18 (adapted) 

(36)  (cid:214) Due to the increasing dependence of consumers on personal recommendations, it is 
appropriate to include a definition of advice. Before advice is provided, the insurance 

(cid:208) 2002/92/EC recital 20 (adapted) 
(cid:214) new 

EN 

22 

   EN 

 
 
intermediary  or  undertaking  should  assess  the  customer's  needs,  demands  and  its 
financial situation.  If the intermediary declares that he ⌦ it ⌫ is giving advice on 
products from a broad range of insurance undertakings, he ⌦ it ⌫ should carry out a 
fair and sufficiently wide-ranging analysis of the products available on the market. In 
addition,  all  (cid:214) insurance   intermediaries  (cid:214) and  insurance  undertakings   should 
explain the reasons underpinning their advice.  

(cid:216) new 

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

(38)  Uniform  rules  should  be  laid  down  in  order  to  give  the  person  selling  the  insurance 
product  a  certain  choice  with  regard  to  the  medium  in  which  all  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 always be provided free 
of charge. 

(39)  There is less of a need to require that such information be disclosed when the customer 
is  a  company  seeking  reinsurance  or  insurance  cover  for  commercial  and  industrial 
risks (cid:214) , or is a professional customer (see Annex I of the Directive)  . 

(cid:208) 2002/92/EC recital 21 
(cid:214) new 

(cid:208) 2002/92/EC recital 19 (adapted) 
(cid:214) new 

(40)  This  Directive  should  specify  the  (cid:214) minimum   obligations  which  (cid:214) insurance 
undertakings and  insurance intermediaries should have in providing information to 
customers.  A  Member  State  may  ⌦ should  be  able  to ⌫  in  this  area  maintain  or 
adopt  more  stringent  provisions  which  may  be  imposed  on  insurance  intermediaries 
(cid:214) and  insurance  undertakings   independently  of  their  place  of  residence  (cid:214) the 
provisions  of  their  home  Member  State   where  they  are  pursuing  (cid:214) insurance  
mediation  activities  on  its  territory  provided  that  any  such  more  stringent  provisions 
comply  with  Community  ⌦ 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)19.  (cid:214)  A  Member  State  which  proposes  to  apply 

19 

OJ L 138, 13.7.2000, p. 1. 

EN 

23 

   EN 

 
 
 
                                                 
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.  

(cid:216) new 

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

(42)  Contracts of insurance that involve investments are often made available to customers 
as  potential  alternatives  or  substitutes  to  investment  products  subject  to  Directive 
[MiFID II]20. 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, and in the case of 
independent  advisers,  restrictions  on  the  form  of  remuneration.  The  European 
Securities  and  Markets  Authority  (ESMA)  and  the  European  Insurance  and 
Occupational  Pensions  Authority  (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. 
For insurance investment products, the standards of this Directive which are applicable 
to all insurance contracts (Chapter VII of this Directive), and the enhanced standards 
for  insurance  investment  products  are  cumulative.  Accordingly,  persons  carrying  out 
insurance mediation in relation to insurance investment products should comply with 

20 

Directive of the European Parliament and of the Council on markets in financial instruments repealing 
Directive 2004/39/EC of the European Parliament and of the Council (Recast); COM(2011) 656 final. 

EN 

24 

   EN 

 
                                                 
(43) 

(44) 

(45) 

(46) 

the conduct standards applicable to all insurance contracts as well as to the enhanced 
standards applicable to insurance investment products. 

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  sanctions  and  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 sanctions and measures in the 
Commission Communication of 8 December 2010 on reinforcing sanctioning regimes 
in  the  financial  sector21.  Therefore,  administrative  sanctions  and  measures  laid  down 
by  Member  States  should  satisfy  certain  essential  requirements  in  relation  to 
addressees,  criteria  to  be  taken  into  account  when  applying  a  sanction  or  measure, 
publication, key sanctioning powers and levels of administrative pecuniary sanctions. 

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

In  order  to  ensure  a  consistent  application  of  sanctions  across  Member  States,  when 
determining  the  type  of  administrative  sanctions  or  measures  and  the  level  of 
administrative  pecuniary  sanctions,  Member  States  should  be  required  to  ensure  that 
the competent authorities take into account all relevant circumstances. 

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,  sanctions  and 
measures imposed should be published, except in certain well-defined circumstances. 
In  order  to  ensure  compliance  with  the  principle  of  proportionality,  sanctions  and 
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.  

(48)  This Directive should refer to both administrative sanctions and measures irrespective 

of their qualification as a sanction or 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. 

(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 

21 

COM(2010)716. 

EN 

25 

   EN 

                                                 
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 a body with highly specialised 
expertise, it would be efficient and appropriate to entrust EIOPA with the elaboration 
of draft regulatory and implementing technical standards which do not involve policy 
choices, for submission to the Commission.  

(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)22, 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. 

(53)  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 
States23  and  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 data24 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,  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. 

(56)  A review of this Directive should be carried out five years after the date on which this 
Directive enters into force in order to take account of market developments as well as 

22 
23 
24 

OJ L 331, 15.12.2010, p.48. 
OJ L 281, 23.11.1995, p. 31. 
OJ L 8, 12.1.2001, p. 1. 

EN 

26 

   EN 

                                                 
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. 

(57)  Directive 77/92/EEC ⌦ 2002/92/EC⌫ should accordingly be repealed, ⌦ . ⌫ 

(cid:208) 2002/92/EC recital 24 (adapted) 

(cid:216) new 

(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: 

(cid:208) 2002/92/EC 

CHAPTER I 

SCOPE AND DEFINITIONS 

Article 1 
Scope 

(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

1. 

This Directive lays down rules for ⌦ concerning ⌫ the taking-up and pursuit of the 
insurance  and  reinsurance  mediation,  (cid:214) including  professional 
activities  of 
management of claims and loss adjusting,  by natural and legal persons which are 
established in a Member State or which wish to become ⌦ be ⌫ established there. 

EN 

27 

   EN 

 
 
 
 
(cid:208) 2002/92/EC 

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;  

(cid:208) 2002/92/EC (adapted) 

(e) 

the  insurance  is  complementary  to  the  product  or  service  ⌦ goods ⌫ 
supplied  by  any  provider,  where  such  insurance  covers:  (i)  the  risk  of 
breakdown,  loss  of  or  damage  to  the  goods  supplied  by  that  provider,  or 
⌦ ; ⌫ 

(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

(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; 

(f) 

the  amount  of  the  annual  premium  (cid:214) for  the  insurance  contract,  when  pro-
rated  to  produce  an  annual  amount,   does  not  exceed  EUR  500 ⌦ 600 ⌫ 
and  the  total  duration  of  the  insurance  contract,  including  any  renewals,  does 
not exceed five years. 

3. 

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

(cid:208) 2002/92/EC (adapted) 

EN 

28 

   EN 

 
 
 
 
(cid:208) 2002/92/EC 
(cid:214) new 

This  Directive  shall  not  affect  a  Member  State's  law  in  respect  of  insurance  (cid:214) and 
reinsurance   mediation  business  pursued  by 
reinsurance 
(cid:214) 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 (cid:214) and reinsurance  mediation activities on that market. 

insurance  and 

This  Directive  shall  not  regulate  insurance (cid:214) or  reinsurance   mediation  activities 
carried  out  in  third  countries  nor  activities  of  Community  insurance  or  reinsurance 
undertakings, as defined in 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(8) 
and  First  Council  Directive  79/267/EEC  of  5  March  1979  on  the  coordination  of 
laws, regulations and administrative provisions relating to the taking-up and pursuit 
of 
insurance 
the  business  of  direct 
intermediaries in third countries. 

life  assurance(9),  carried  out 

through 

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. 

(cid:216) new 

(cid:208) 2002/92/EC 
(cid:214) new 

Article 2 
Definitions 

For the purposes of this Directive: 

1. 

2. 

'insurance  undertaking'  means  an  undertaking  which  has  received  official 
authorisation  in  accordance  with  Article  6 of  Directive  73/239/EEC  or  Article  6  of 
Directive 79/267/EEC; 

'reinsurance undertaking' means an undertaking, other than an insurance undertaking 
or a non-member-country insurance undertaking, the main business of which consists 
in  accepting  risks  ceded  by  an  insurance  undertaking,  a  non-member-country 
insurance  undertaking  or  other  reinsurance  undertakings  (cid:214) which  has  received 
official authorisation in accordance with Article 3 of Directive 2005/68/EC ; 

EN 

29 

   EN 

 
 
 
(cid:208) 2002/92/EC 
(cid:214) new 

3. 

'insurance  mediation'  means  the  activities  of  introducing  (cid:214) advising  on   , 
proposing  or  carrying  out  other  work  preparatory  to  the  conclusion  of  contracts  of 
insurance, or of concluding such contracts, or of assisting in the administration and 
performance  of  such  contracts,  in  particular  in  the  event  of  a  claim  (cid:214) ,  and  the 
activity of professional management of claims and loss adjusting . These activities 
when  undertaken  by  an  insurance  undertaking  or  an  employee  of  an  insurance 
undertaking who is acting under the responsibility of the insurance undertaking shall 
not be considered as insurance mediation. (cid:214) These activities shall be considered to 
be  insurance  mediation  also  if  carried  on  by  an  insurance  undertaking  without  the 
intervention of an insurance intermediary.  

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

(cid:216) new 

(cid:208) 2002/92/EC 
(cid:214) new 

(a)  Tthe provision of information on an incidental basis (cid:214) to a customer  in the 
context  of  another  professional  activity  provided  that  the  purpose  of  that 
activity is not (cid:214) , if the provider does not take any additional steps  to assist 
the  customer  in  concluding  or  performing  an  insurance  contract,  the 
management of claims of an insurance undertaking on a professional basis, and 
loss  adjusting  and  expert  appraisal  of  claims  shall  also  not  be  considered  as 
insurance mediation; 

(cid:216) new 

(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  investment  product'  means  a  contract  of  insurance  which  could  be  also 
classified as an "investment product" as defined in Article 2(a) of [Regulation on key 
information documents for investment products (PRIPs Regulation) ]; 

EN 

30 

   EN 

 
 
 
 
5. 

'insurance  intermediary'  means  any  natural  or  legal  person  (cid:214) ,  other  than  an 
insurance  undertaking,   who,  for  remuneration,  takes  up  or  pursues  insurance 
mediation; 

(cid:208) 2002/92/EC 
(cid:214) new 

(cid:208) 2002/92/EC 
(cid:214) new 

64. 

'reinsurance  mediation'  means  the  activities  of  introducing  (cid:214) advising  on   , 
proposing  or  carrying  out  other  work  preparatory  to  the  conclusion  of  contracts  of 
reinsurance, or of concluding such contracts, or of assisting in the administration and 
performance  of  such  contracts,  in  particular  in  the  event  of  a  claim,  (cid:214) and  the 
activity of professional management of claims and loss adjusting.  These activities 
when  undertaken  by  a  reinsurance  undertaking  or  an  employee  of  a  reinsurance 
undertaking who is acting under the responsibility of the reinsurance undertaking are 
not considered as reinsurance mediation (cid:214) These activities shall be considered to be 
reinsurance  mediation  also  if  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:  

(cid:216) new 

(cid:208) 2002/92/EC 

(a)  Tthe 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,  the 
management  of  claims  of  a  reinsurance  undertaking  on  a  professional  basis, 
and loss adjusting and expert appraisal of claims shall also not be considered as 
reinsurance mediation; 

(cid:216) new 

(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.  

EN 

31 

   EN 

 
 
 
 
 
(cid:208) 2002/92/EC 
(cid:214) new 

76. 

87. 

'reinsurance  intermediary'  means  any  natural  or  legal  person  (cid:214) ,  other  than  a 
reinsurance undertaking,   who,  for  remuneration,  takes  up  or  pursues  reinsurance 
mediation; 

'tied  insurance  intermediary'  means  any  person  who  carries  on  the  activity  of 
insurance mediation for and on behalf of one or more insurance undertakings in the 
case  of  insurance  products  which  are  not  in  competition  but  does  not  collect 
premiums  or  amounts  intended  for  the  customer  (cid:214) or  insurance  intermediaries,  
and  who  acts  under  the  full  responsibility  of  those  insurance  undertakings  for  the 
products which concern them respectively. (cid:214) 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  on  the  activity  of  insurance  mediation  in  addition  to  his  principal 
professional  activity  is  also  considered  as  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  or  services  supplied  in  the 
framework of this principal professional activity and the person does not collect premiums or 
amounts intended for the customer; 

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; 

(cid:216) new 

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; 

(cid:216) new 

118. 

'large risks' shall be as defined by Article 5(d) of Directive 73/239/EEC; 

(cid:208) 2002/92/EC 

129. 

'home Member State' means: 

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

residence is situated and in which he carries on business; 

EN 

32 

   EN 

 
 
 
 
(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; 

(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

1310. 

1412. 

'host  Member  State'  means  the  Member  State  in  which  an  insurance  or  reinsurance 
intermediary  has  a  branch ⌦ permanent  presence  or  establishment ⌫  or  provides 
services (cid:214) and which is not its home Member State ; 

'durable  medium'  means  a  durable  medium  any  instrument  which  enables  the 
customer  to  store  information  addressed  personally  to  him  in  a  way  accessible  for 
future reference for a period of time adequate to the purposes of the information and 
which allows the unchanged reproduction of the information stored. (cid:214) as defined in 
Article  2(m)  of  Directive  2009/65/EC;   In  particular,  durable  medium  covers 
floppy  disks,  CD-ROMs,  DVDs  and  hard  drives  of  personal  computers  on  which 
electronic  mail  is  stored,  but  it  excludes  Internet  sites,  unless  such  sites  meet  the 
criteria specified in the first paragraph. 

(cid:216) new 

(15) 

'cross-selling practice' means the offering of an insurance service or product together 
with  another  service  or  product  as  part  of  a  package  or  as  a  condition  of  taking 
another agreement or package; 

(16) 

'close links' means a situation referred to in Article 4(31) of Directive [MIFID II]; 

(17) 

(18) 

(19) 

(20) 

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

'remuneration'  means  any  commission,  fee,  charge  or  other  payment,  including  an 
economic  benefit  of  any  kind,  offered  or  given  in  connection  with  insurance 
mediation activities. 

'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.  

'bundling  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 
also made available to the consumer separately but not necessarily on the same terms 
or conditions as when offered bundled with the ancillary services. 

EN 

33 

   EN 

 
 
(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

CHAPTER II 

REGISTRATION REQUIREMENTS 

Article 3 
Registration  

1. 

(cid:214) Except as provided in Article 4,  Iinsurance and reinsurance intermediaries shall 
be  registered  with  a  competent  authority  as  defined  in  Article  7(2),  in  their  home 
Member  State.  (cid:214) Insurance  undertakings  registered  in  Member  States  under 
Directive  73/239/EEC,  Directive  2002/83/EC  and  Directive  2005/68/EC  and  their 
employees shall not be required to register again under this Directive.  

Without  prejudice  to  the  first  subparagraph,  Member  States  may  stipulate  that 
insurance  and  reinsurance  undertakings  and  other  bodies  may  collaborate 
⌦ cooperate ⌫  with  the  competent  authorities  in  registering  insurance  and 
reinsurance intermediaries and in the application of the requirements of Article 4 8 to 
such  intermediaries.  In  particular,  in  the  case  of  tied  insurance  intermediaries,  they 
may  be  registered  by  an  insurance  undertaking  or,  by  an  association  of  insurance 
undertakings  (cid:214) ,  or  by  an  insurance  or  reinsurance  intermediary   under  the 
supervision of a competent authority. 

(cid:216) new 

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. 

(cid:208) 2002/92/EC 
(cid:214) new 

Member  States  need  not  apply  the  requirement  referred  to  in  the  first  and  second 
subparagraphs  to  all  the  natural  persons  who  work  in  an  (cid:214) insurance  or 
reinsurance   undertaking  (cid:214) or 
reinsurance 

insurance  or 

registered 

a 

EN 

34 

   EN 

 
 
 
intermediary   and  (cid:214) who   pursue  the  activity  of  insurance  or  reinsurance 
mediation. 

(cid:208) 2002/92/EC (adapted) 

As  regards  legal  persons,  Member  States  shall  register  such  ⌦ 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. 

(cid:216) new 

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. 

4. 

(cid:208) 2002/92/EC 

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. 

(cid:216) new 

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. 

EN 

35 

   EN 

 
 
 
 
(cid:208) 2002/92/EC 

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 4 8. 

Member States shall also ensure that insurance intermediaries - including tied ones - 
and  reinsurance  intermediaries  who  cease  to  fulfil  these  requirements  are  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 by any appropriate means. 

5. 

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. 

(cid:216) new 

(cid:208) 2002/92/EC 
(cid:214) new 

4.  The  competent  authorities  may  provide 
insurance  and  reinsurance 
intermediaries  with  a  document  enabling  any  interested  party  by  consultation  of 
(cid:214) any  of   the  register(s)  referred  to  in  paragraph  2  to  verify  that  they  are  duly 
registered. 

the 

That document shall at least provide the information specified in Article 12(1)(a) and 
(b)16(a)  and  (b),  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. 

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

6. 

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

(cid:216) new 

EN 

36 

   EN 

 
 
 
 
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  the  following 
information  from  insurance  and  reinsurance  intermediaries,  as  a  condition  of 
registration: 

(a) 

(b) 

(c) 

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; 

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

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. 

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. 

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. 

(a) 

(b) 

(c) 

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: 

the  principal  professional  activity  of  the  insurance  intermediary  is  other  than 
insurance mediation;  

the  insurance  intermediary  only  mediates  certain  insurance  products  that  are 
complementary to a product or service and clearly identifies them in the declaration;  

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

EN 

37 

   EN 

2. 

3. 

4. 

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

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.  

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. 

CHAPTER IV  

FREEDOM TO PROVIDE SERVICES AND FREEDOM OF 
ESTABLISHMENT  

(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

Article 65 
Notification of establishment and services in other Member States 
⌦ Exercise of the freedom to provide services ⌫ 

1. 

Any insurance or reinsurance intermediary intending ⌦ who intends ⌫ to carry on 
business (cid:214) within the territory of another Member State  for the first time in one 
or  more  Member  States  under  the  freedom  to  provide  services  or  the  freedom  of 
establishment  shall  inform  (cid:214) communicate  the  following  information  to   the 
competent authorities ⌦ authority ⌫ of the ⌦ his ⌫ home Member State . 

Within a period of one month after such notification, those competent authorities shall inform 
the competent authorities of any host Member States wishing to know, of the intention of the 
insurance  or  reinsurance  intermediary  and  shall  at  the  same  time  inform  the  intermediary 
concerned. 

The  insurance  or  reinsurance  intermediary  may  start  business  one  month  after  the  date  on 
which  he  was  informed  by  the  competent  authorities  of  the  home  Member  State  of  the 
notification  referred  to  in  the  second  subparagraph.  However,  that  intermediary  may  start 
business immediately if the host Member State does not wish to be informed of the fact. 

2.Member States shall notify the Commission of their wish to be informed in accordance with 
paragraph 1. The Commission shall in turn notify all the Member States of this. 

3.The competent authorities of the host Member State may take the necessary steps to ensure 
appropriate publication of the conditions under which, in the interest of the general good, the 
business concerned must be carried on in their territories. 

EN 

38 

   EN 

 
(cid:216) new 

(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. 

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.  

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. 

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. 

Article 6 
 Exercise of the freedom of establishment  

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; 

2. 

3. 

4. 

1. 

EN 

39 

   EN 

 
(b) 

(c) 

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

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.  

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. 

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. 

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 

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. 

3. 

4. 

1. 

EN 

40 

   EN 

2. 

3. 

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. 

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) 

(b) 

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;  

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 

EN 

41 

   EN 

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  

(cid:208) 2002/92/EC 
(cid:214) new 

Article 48  
Professional (cid:214) and organisational  requirements 

(cid:208) 2002/92/EC 
(cid:214) new 

1. 

Insurance  and  reinsurance  intermediaries  (cid:214) ,  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  (cid:214) 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 . 

(cid:216) new 

Member  States  shall  ensure  that  insurance  and  reinsurance  intermediaries  and 
members  of  staff  of  insurance  undertakings  carrying  out  insurance  mediation 
activities  update  their  knowledge  and  ability  through  continuing  professional 
development in order to maintain an adequate level of performance. 

EN 

42 

   EN 

 
 
 
(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

Home Member States may adjust the required conditions with regard to knowledge 
and  ability  in  line  with  the  (cid:214) particular   activity  of  insurance  or  reinsurance 
mediation and the products distributed ⌦ 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 his ⌦ the intermediary's ⌫ actions. 

Member  States  may  provide  that,  for  ⌦ in ⌫  the  cases  referred  to  in  the  second 
subparagraph  of  Article  3(1),  the  insurance  undertaking  (cid:214) 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  (cid:214) insurance   undertaking 
(cid:214) 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 (cid:214) 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  (cid:214) and  members  of  staff  of  insurance 
undertakings carrying out insurance mediation activities  shall be of good repute. 
As a minimum, they 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  and  they  should  not  have  previously  been 
declared  bankrupt,  unless  they  have  been  rehabilitated  in  accordance  with  national 
law. 

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 (cid:214) insurance  undertaking 
(cid:214) 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. 

EN 

43 

   EN 

 
(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

3. 

Insurance and reinsurance intermediaries shall hold professional indemnity insurance 
covering  the  whole  territory  of  the  Community  ⌦ Union ⌫  or  some  other 
comparable  guarantee  against  liability  arising  from  professional  negligence,  for  at 
least EUR 1000000 ⌦ 1,120,000 ⌫ applying to each claim and in aggregate EUR 
1500000  ⌦ 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. 

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. 

(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

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) 

(c) 

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 15000 ⌦ 16800 ⌫; 

a requirement that customers' monies shall be transferred via strictly segregated 
client  ⌦ 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. 

6. 

7. 

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. 

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

(cid:214) EIOPA  shall  review   the  amounts  referred  to  in  paragraphs  3  and  4  shall  be 
reviewed  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 

EN 

44 

   EN 

 
 
years after the entry into force of this Directive and the successive reviews every five 
years after the previous review date. 

The amounts shall be adapted automatically by increasing the base amount in euro 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 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. 

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

(cid:216) new 

(a) 

(b) 

(c) 

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; 

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

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. 

(cid:208) 2002/92/EC 

Article 5 

Retention of acquired rights 

Member  States  may  provide  that  those  persons  who  exercised  a  mediation  activity  before  1 
September  2000,  who  were  entered  in  a  register  and  who  had  a  level  of  training  and 

EN 

45 

   EN 

 
 
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. 

(cid:216) new 

Article 9  
Publication of general good rules 

1. 

2. 

3. 

4. 

5. 

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. 

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. 

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. 

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. 

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 X X 20XX [three 
years after the entry into force of the Directive].  

(cid:208) 2002/92/EC 

Article 710 
Competent 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. 

EN 

46 

   EN 

 
 
2. 

3. 

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. 

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. 

(cid:216) new 

Article 8 

Sanctions 

1. Member States shall provide for appropriate sanctions in the event that a person exercising 
the activity of insurance or reinsurance mediation is not registered in a Member State and is 
not referred to in Article 1(2). 

2.  Member  States  shall  provide  for  appropriate  sanctions  against  insurance  or  reinsurance 
undertakings  which  use  the  insurance  or  reinsurance  mediation  services  of  persons  who  are 
not registered in a Member State and who are not referred to in Article 1(2). 

3.  Member  States  shall  provide  for  appropriate  sanctions  in  the  event  of  an  insurance  or 
reinsurance intermediary's failure to comply with national provisions adopted pursuant to this 
Directive. 

4.  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. 

5. Any measure adopted involving sanctions or restrictions on the activities of an insurance or 
reinsurance  intermediary  must  be  properly  justified  and  communicated  to  the  intermediary 
concerned.  Every  such  measure  shall  be  subject  to  the  right  to  apply  to  the  courts  in  the 
Member State which adopted it. 

(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

Article 911 
Exchange 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. 

EN 

47 

   EN 

 
 
2. 

3. 

The competent authorities shall exchange information on insurance and reinsurance 
intermediaries if they have been subject to a sanction referred to in Article 8(3) or a 
measure  referred  to  in  Article  8(4)  ⌦ 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. 

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 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)(10)  and  Article  15  of  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)(11). 

Article 1012 
Complaints 

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  (cid:214) and  undertakings .  In  all  cases  complaints  shall  receive 
replies. 

(cid:208) 2002/92/EC 

Article 1113 
Out-of-court redress 

(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

1. 

Member  States  shall  encourage  ⌦ ensure ⌫  the  setting-up  of  appropriate,  and 
effective, (cid:214) impartial and independent  complaints and redress procedures for the 
out-of-court settlement of disputes between insurance intermediaries and customers, 
(cid:214) and  between  insurance  undertakings  and  customers,   using  existing  bodies 
where  appropriate.  (cid:214) 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: 

(a) 

the procedure results in decisions which are not binding; 

(b) 

(c) 

[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; 

the  period  of  prescription  of  the  claim  is  suspended  for  the  duration  of  the 
procedure; 

EN 

48 

   EN 

 
 
(d) 

the procedure is free of charge or at moderate costs; 

(e) 

(f) 

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

interim  measures  are  possible  in  exceptional  cases  where  the  urgency  of  the 
situation so requires.  

2. 

Member  States  shall  encourage ⌦ ensure  that ⌫  these  bodies  to  cooperate  in  the 
resolution of cross-border disputes. 

Article 16 14 
Transposition 
⌦ Restriction on use of intermediaries ⌫ 

(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

Member  States  shall  ensure  that  insurance  (cid:214) and  reinsurance   undertakings  (cid:214) and 
intermediaries   use  the  insurance  and  reinsurance  mediation  services  only  of  registered 
insurance  and  reinsurance  intermediaries  and ⌦ or ⌫  of  the  persons  referred  to  in  Article 
1(2)  (cid:214) or  of  the  persons  who  have  fulfilled  the  declaration  procedure  referred  to  in  Article 
4 . 

CHAPTER VI III 

INFORMATION REQUIREMENTS FOR INTERMEDIARIES 
⌦ AND CONDUCT OF BUSINESS RULES ⌫ 

(cid:208) 2002/92/EC (adapted) 

(cid:216) new 

Article 15  

General principle 

1. 

2. 

EN 

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

All  information,  including  marketing  communications,  addressed  by  the  insurance 
intermediary  or  insurance  undertaking  to  customers  or  potential  customers  shall  be 

49 

   EN 

 
 
 
fair,  clear  and  not  misleading.  Marketing  communications  shall  be  clearly 
identifiable as such. 

(cid:208) 2002/92/EC 
(cid:214) new 

Article 1216 
 (cid:214) General  information provided by the insurance intermediary (cid:214) or insurance 
undertaking   

Member States shall lay down rules ensuring that 

(cid:216) new 

(a) 

prior  to  the  conclusion  of  any  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;  

(cid:208) 2002/92/EC 

(eiii)  the  procedures  referred  to  in  Article  10  12  allowing  customers  and  other 
interested  parties  to  register  complaints  about  insurance  and  reinsurance 
intermediaries and, if appropriate, about the out-of-court complaint and redress 
procedures referred to in Article 11. 13; 

(cid:216) new 

(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;  

EN 

50 

   EN 

 
 
 
 
(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. 

(cid:208) 2002/92/EC (adapted) 

Article 12 17 
 ⌦ Conflicts of interest and transparency ⌫ 

(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

1. 

Prior  to  the  conclusion  of  any  initial  insurance  contract,  and,  if  necessary,  upon 
amendment or renewal thereof, an insurance intermediary (cid:214) – including tied ones –
  shall provide the customer with at least the following information: 

(a)  his identity and address; 

(b) 

the register in which he has been included and the means for verifying that he 
has been registered; 

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

(db)  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; 

(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

(c) 

In  addition,  an  insurance  intermediary  shall  inform  the  customer,  concerning 
(cid:214) in relation  to the contract that is provided ⌦ proposed ⌫, whether: 

(i) 

he  ⌦ it ⌫  gives  advice  based  on  the  obligation  in  paragraph  2  to 
provide ⌦ on the basis of ⌫ a fair analysis, or 

(cid:208) 2002/92/EC (adapted) 

(ii)  he  ⌦ it ⌫  is  under  a  contractual  obligation  to  conduct  insurance 
mediation business exclusively with one or more insurance undertakings. 
In that case, it shall, at the customer's request, provide the names of those 
insurance undertakings, or 

EN 

51 

   EN 

 
 
 
 
(iii)  he  ⌦ it ⌫  is  not  under  a  contractual  obligation  to  conduct  insurance 
mediation business exclusively with one or more insurance undertakings 
and  does  not  give  advice  based  on  the  obligation  in  paragraph  2  to 
provide ⌦ on the basis of ⌫ a fair analysis. In that case, it shall, at the 
customer's request, provide the names of the insurance undertakings with 
which it may and does conduct business. ⌦ ; ⌫ 

In  those  cases  where  information  is  to  be  provided  solely  at  the  customer's  request,  the 
customer shall be informed that he has the right to request such information. 

(d) 

the nature of the remuneration received in relation to the insurance contract; 

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

(cid:216) new 

(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);  

(f) 

(g) 

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;  

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. 

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,  

(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). 

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 

EN 

52 

   EN 

 
4. 

5. 

31. 

received  by  any  employee  of  theirs  for  distributing  and  managing  the  insurance 
product in question.  

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. 

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

(a) 

(b) 

(c) 

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; 

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

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

(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

Article 1218 
(cid:214) Advice, and standards for sales where no advice is given  

Prior  to  the  conclusion  of  any  specific  contract,  the  insurance  intermediary  (cid:214) –
including 
least  specify 
⌦ indentify ⌫ , in particular on the basis of information provided by the customer,: 

insurance  undertaking   shall  at 

tied  ones–  or 

(a) 

the demands and the needs of that customer; as well as 

(b)  ⌦ and shall specify to the customer ⌫ the underlying reasons for any advice 
given  to  the  customer  on  a  given  ⌦ specified ⌫  insurance  product  (cid:214) ,  if 
given . 

32. 

These details (cid:214) referred to in points (a) and (b) of paragraph 1  shall be modulated 
according to the complexity of the insurance contract ⌦product ⌫ being proposed 
(cid:214) and the level of financial risk to the customer . 

(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

23. 

When  the  insurance  intermediary  (cid:214) or  the  insurance  undertaking   informs  the 
customer that he ⌦ it ⌫ gives his ⌦ its ⌫ advice on the basis of a fair analysis, 
he ⌦ 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 him ⌦ it ⌫ 

EN 

53 

   EN 

 
 
to make a recommendation, in accordance with professional criteria, regarding which 
insurance contract would be adequate to meet the customer's needs. 

(cid:216) new 

4. 

Prior  to  the  conclusion  of  a  contract,  whether  or  not  advice  is  given,  the  insurance 
intermediary  or  insurance  undertaking  shall  give  the  customer  the  relevant 
information  about  the  insurance  product  in  a  comprehensible  form  to  allow  the 
customer to make an informed decision, while taking into account the complexity of 
the insurance product and the type of costumer. 

(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

Article 12 19 
 (cid:214) Information exemptions and flexibility clause   

41. 

52. 

3. 

The  information  referred  to  in  paragraphs  1,2  and  3 ⌦ Articles  16,  17  and  18 ⌫ 
need  not  be  given  when  the  insurance  intermediary  or  insurance  undertaking 
mediates in the insurance of large risks, nor in the case of mediation by reinsurance 
intermediaries  (cid:214) or  reinsurance  undertakings,  or  in  relation  to  professional 
customers as specified in the Annex . 

Member  States  may  maintain  or  adopt  stricter provisions regarding the information 
requirements referred to in paragraph 1 ⌦ Articles 16, 17 and 18 ⌫ provided that 
such  provisions  comply  with  Community  ⌦ Union ⌫  law.  Member  States  shall 
communicate  to  (cid:214) EIOPA  and   the  Commission  the  ⌦ such ⌫  national 
provisions set out in the first subparagraph. 

In  order  to  establish  a  high  level  of  transparency  by  all  appropriate  means,  the 
Commission  (cid:214) EIOPA   shall  ensure  that  the  information  it  receives  relating  to 
national provisions is also communicated to consumers, and insurance intermediaries 
(cid:214) and insurance undertakings . 

(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

Article 1320 
Information conditions 

1. 

All information to be provided to customers in accordance with Articles 12 ⌦ 16, 
17 and 18 ⌫ shall be communicated (cid:214) to the customers  :  

(a)  on  paper  or  on  any  other  durable  medium  available  and  accessible  to  the 

customer; 

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(b) 

in a clear and accurate manner, comprehensible to the customer; (cid:214) and  

(cid:208) 2002/92/EC 
(cid:214) new 

(c) 

in an official language of the Member State (cid:214) in which the risk is situated or 
the Member State  of the commitment or in any other language agreed by the 
parties. (cid:214) 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:  

(cid:216) new 

3. 

4. 

5. 

(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. 

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  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. 

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) 

(b) 

(c) 

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;  

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

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; 

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(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.  

(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

73. 

In the case of telephone selling, the prior information given to the customer shall be 
in  accordance  with  Community  ⌦ Union ⌫  rules  applicable  to  the  distance 
marketing  of  consumer  financial  services.  Moreover,  information  shall  be  provided 
to  the  customer  in  accordance  with  paragraph  1  (cid:214) or  2   immediately  after  the 
conclusion of the insurance contract. 

(cid:216) new 

Article 21 

Cross-selling  

1. 

2. 

3. 

Member States shall allow bundling practices but not tying practices. 

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.  

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

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CHAPTER VII 

ADDITIONAL CUSTOMER PROTECTION REQUIREMENTS 
IN RELATION TO INSURANCE INVESTMENT PRODUCTS 

Article 22 
Scope 

This  Chapter  applies  additional  requirements  to  insurance  mediation,  when  carried  on  in 
relation to the sale of insurance investment products by: 

(a) 

(b) 

1. 

2. 

an insurance intermediary; 

an insurance undertaking. 

Article 23 
Conflicts of interest 

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.  

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. 

3. 

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

(a) 

(b) 

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; 

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. 

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   EN 

Article 24 
General principles and information to customers 

1. 

2. 

Member States shall require that, when carrying out insurance mediation with or for 
customers,  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. 

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: 

(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; 

(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 

(c) 

costs and associated charges. 

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. 

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: 

(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. 

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: 

4. 

5. 

6. 

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58 

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(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. 

Article 25 
Assessment of suitability and appropriateness and reporting to customers  

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. 

that 

insurance 

intermediaries  and 

Member  States  shall  ensure 
insurance 
undertakings,  when  carrying  on  insurance  mediation  in  relation  to  sales  where  no 
advice  is  given,  ask  the  customer  or  potential  customer  to  provide  information 
regarding  the  customer's  or  potential  customer's  knowledge  and  experience  in  the 
investment  field  relevant  to  the  specific  type  of  product  or  service  offered  or 
demanded  so  as  to  enable  the  insurance  intermediary  or  insurance  undertaking  to 
assess  whether  the  insurance  service  or  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 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 customers or potential customers do not provide the information referred to in 
the first subparagraph, or where they provide insufficient information regarding their 
knowledge and experience, the insurance intermediary or insurance undertaking shall 
warn  them  that  the  insurance  intermediary  or  insurance  undertaking  is  not  in  a 
position  to  determine  whether  the  service  or  product  envisaged  is  appropriate  for 
them. This warning may be provided in a standardised format. 

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. 

The customer must receive from the insurance intermediary or insurance undertaking 
adequate reports on the service provided to its customers. These reports shall include 
periodic  communications  to  customers,  taking  into  account  the  type  and  the 

1. 

2. 

3. 

4. 

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complexity of insurance products involved and the nature of the service provided to 
the  customer  and  shall  include,  where  applicable,  the  costs  associated  with  the 
transactions  and  services  undertaken  on  behalf  of  the  customer.  When  providing 
advice,  the  insurance  intermediary  or  insurance  undertaking  shall  specify  how  the 
advice given meets the personal characteristics of the customer. 

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 : 

(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. 

CHAPTER VIII  

SANCTIONS AND MEASURES 

Article 26 
Administrative sanctions and measures 

1. 

2. 

3. 

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

Member States shall ensure that where obligations apply to insurance or reinsurance 
undertakings  or  insurance  or  reinsurance  intermediaries,  in  case  of  a  breach, 
administrative  sanctions  and  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. 

The competent authorities shall be given all investigatory powers that are necessary 
for  the  exercise  of  their  functions.  In  the  exercise  of  their  sanctioning  powers,  the 
competent  authorities  shall  cooperate  closely  to  ensure  that  sanctions  or  measures 
produce  the  desired  results  and  coordinate  their  action  when  dealing  with  cross 
border cases. 

Article 27 
Publication of sanctions 

Member States shall provide that the competent authority publishes any sanction or measure 
that has been imposed for breaches of the provisions of the national provisions adopted in the 
implementation of this Directive without undue delay including information on the type and 
nature  of  the  breach  and  the  identity  of  persons  responsible  for  it,  unless  such  disclosure 
would seriously jeopardise insurance and reinsurance markets. Where the publication would 

EN 

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cause  a  disproportionate  damage  to  the  parties  involved,  the  competent  authorities  shall 
publish the sanctions on an anonymous basis. 

1. 

This article shall apply to the following: 

Article 28 
Breaches  

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

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; 

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; 

insurance  or  reinsurance  undertaking  or 

insurance  or  reinsurance 
an 
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; 

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

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

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  sanctions  and  measures  that  can  be  applied  include  at  least  the 
following: 

(a) 

(b) 

(c) 

(d) 

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

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

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

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; 

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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 

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 29 
Effective application of sanctions 

1. 

Member  States  shall  ensure  that  when  determining  the  type  of  administrative 
sanctions  or  measures  and  the  level  of  administrative  pecuniary  sanctions,  the 
competent authorities shall take into account all relevant circumstances, including: 

(a) 

the gravity and the duration of the breach; 

(b) 

the degree of responsibility of the responsible natural or legal person; 

(c) 

(d) 

(e) 

(f) 

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; 

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

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

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. 

2. 

3. 

EIOPA  shall  issue  guidelines  addressed  to  the  competent  authorities  in  accordance 
with  Article  16  of  Regulation  No  (EU)  1094/2010  on  the  types  of  administrative 
measures and sanctions and level of administrative pecuniary sanctions. 

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. 

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Article 30 
Reporting 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 for employees of insurance or reinsurance undertakings 
or intermediaries who denounce 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. 

1. 

2. 

3. 

Article 31 
Submitting information to EIOPA in relation to sanctions 

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

EIOPA shall publish this information in an annual report. 

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

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  [XX/  insert  concrete  date  6  months  after  entry  into  force/application  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.  

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(cid:208) 2002/92/EC 

CHAPTER IV IX  

FINAL PROVISIONS 

Article 14 
Right to apply to the courts 

Member  States  shall  ensure  that  decisions  taken  in  respect  of  an  insurance  intermediary, 
reinsurance  intermediary  or  an  insurance  undertaking  under  the  laws,  regulations  and 
administrative  provisions  adopted  in  accordance  with  this  Directive  may  be  subject  to  the 
right to apply to the courts. 

(cid:216) new 

Article 32 
Data Protection 

1. 

2. 

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

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

Article 33 
Delegated acts 

The Commission shall be empowered to adopt delegated acts in accordance with Article 34 
concerning Articles 8, 17, 23, 24 and 25. 

Article 34 
Exercise of the delegation 

1. 

2. 

3. 

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

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. 

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 

EN 

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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. 

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

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. 

Article 35 
Review and evaluation 

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

After  consulting  the  Joint  Committee  of  European  Supervisory  Authorities,  the 
Commission shall submit a first report to the European Parliament and the Council. 

By X X 20XX [four years after the entry into force of the Directive], and at least on a 
two-year basis thereafter, EIOPA shall prepare a second report on the application of 
this Directive. EIOPA shall consult ESMA before making public its report.  

In a third report to be prepared by X X 20XX [two years after the entry into force of 
the  Directive],  EIOPA  shall  undertake  an  evaluation  of  the  structure  of  insurance 
intermediaries' markets. 

A report to be prepared by EIOPA by X X 20XX [four years after the entry into force 
of the Directive] as referred to in paragraph 3 shall examine whether the competent 
authorities referred to in Article 10(1) are sufficiently empowered and have adequate 
resources to carry out their tasks. 

4. 

5. 

1. 

2. 

3. 

4. 

5. 

6. 

The report referred to in paragraph 3 shall examine at least the following issues: 

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(a) 

the changes in the insurance intermediaries' market structure; 

(b) 

the changes in the patterns of cross-border activity; 

(c) 

an  interim  assessment  on  the  improvement  of  quality  of  advice  and  selling 
methods and the impact of this Directive on insurance intermediaries which are 
small and medium-sized enterprises . 

7. 

That  same  report  shall  also  include  an  evaluation  by  EIOPA  of  the  impact  of  this 
Directive. 

(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

Article 1636 
Transposition 

1. 

2. 

Member  States  shall  bring  into  force  the  laws,  regulations  and  administrative 
provisions  necessary  to  comply  with  this  Directive  before  15  January  2005 
(cid:214) Articles [1-39] and Annex I of the Directive by [date] at the latest . They shall 
forthwith inform ⌦ communicate to ⌫ the Commission thereof (cid:214) the text of those 
provisions . 

These  measures  (cid:214) When  Member  States  adopt  those  provisions,  they   shall 
contain a reference to this Directive or shall be accompanied by such a reference on 
the occasion of their official publication. (cid:214) 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   The 
methods of making (cid:214) Member States shall determine how  such reference shall be 
laid  down  by  the  Member  States  (cid:214) is  to  be  made  and  how  that  statement  is  to  be 
formulated . 

Member  States  shall  communicate  to  the  Commission  the  text  of  the  (cid:214) main 
provisions of national  laws, regulations and administrative provisions which they 
adopt in the field governed ⌦ covered ⌫ by this Directive. In that communication 
they  shall  provide  a  table  indicating  the  national  provisions  corresponding  to  this 
Directive. 

Article 1537 
Repeal 

Directive  77/92/EEC  ⌦ 2002/92/EC ⌫  is  hereby  repealed  with  effect  from  [date  of 
adoption 20XX]the date referred to in Article 16(1) (cid:214) , without prejudice to the obligations of 
the  Member  States  relating  to  the  time-limit  for  transposition  into  national  law  of  that 
Directive.  

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

(cid:216) new 

(cid:208) 2002/92/EC (adapted) 
(cid:214) new 

Article1738 
Entry into force 

This Directive shall enter into force on the (cid:214) twentieth  day of its publication in the Official 
Journal of the European Communities ⌦ Union ⌫. 

(cid:208) 2002/92/EC 

Article 1839 
Addressees 

This Directive is addressed to the Member States. 

Done at Strasbourg,  

For the European Parliament 

For the Council

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(cid:216) new 

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. 

Entities  which are required to be authorised or regulated to operate in the financial 
markets.  The  list  below  should  be  understood  as  including  all  authorised  entities 
carrying out the characteristic activities of the entities mentioned: entities authorised 
by a Member State under a Directive, entities authorised or regulated by a Member 
State without reference to a Directive, and entities authorised or regulated by a non-
Member State: 

(a)  Credit institutions; 

(b) 

Insurance and reinsurance intermediaries and investment firms; 

(c)  Other authorised or regulated financial institutions; 

(d) 

Insurance and reinsurance undertakings; 

(e)  Collective investment schemes and management companies of such schemes; 

(f)  Pension funds and management companies of such funds; 

(g)  Commodity and commodity derivatives dealers; 

(h)  Locals; 

(i)  Other institutional investors; 

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. 

4. 

National and regional governments, including public bodies that manage public debt 
at  national  or  regional  level,  Central  Banks,  international  and  supranational 
institutions  such  as  the  World  Bank,  the  IMF,  the  ECB,  the  EIB  and  other  similar 
international organisations. 

Other institutional investors whose main activity is to invest in financial instruments, 
including  entities  dedicated  to  the  securitisation  of  assets  or  other  financing 

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transactions. The entities mentioned above are considered to be professionals. They 
must however be allowed to request non-professional treatment and firms may agree 
to  provide  a  higher  level  of  protection.  Where  the  customer  of  a  firm  is  an 
undertaking  referred  to  above,  the  firm  must  inform  it  prior  to  any  provision  of 
services  that,  on  the  basis  of  the  information  available  to  the  firm,  the  customer  is 
deemed to be a professional customer, and will be treated as such unless the firm and 
the  customer  agree  otherwise.  The  firm  must  also  inform  the  customer  that  he  can 
request a variation of the terms of the agreement in order to secure a higher degree of 
protection. 

It is the responsibility of the customer, considered to be a professional customer, to 
ask for a higher level of protection when it deems it is unable to properly assess or 
manage the risks involved. This higher level of protection will be provided when a 
customer who is considered to be a professional enters into a written agreement with 
the firm to the effect that it shall not be treated as a professional for the purposes of 
the  applicable  conduct  of  business  regime.  Such  agreement  should  specify  whether 
this applies to one or more particular services or transactions, or to one or more types 
of product or transaction. 

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(cid:216) new 

ANNEX II 
EXPLANATORY 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. 

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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. Some parts of the new Directive will be reinforced by Level 2 measures in order 
to align the rules with MiFID II: in particular, in the chapter regulating the distribution of life 
insurance  policies  with  investment  elements  (hereafter:  insurance  investments  -  see  below). 
This  aims  to  harmonise  the  sales  of  investment  insurances  across  the  EU  through  Level  2 
measures25.  This  is  an  innovation  as  compared  to  the  text  of  the  original  Directive.  It  is 
important that the Commission shall be in a position to compare the resulting situations in the 
various  Member  States  and  thus  properly  carry  out  its  task  of  overseeing  the  application  of 
Union law. 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.  

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 

25 

The IMD review is based on the "Lamfalussy process" (a four-level regulatory approach recommended 
by the Committee of Wise Men on the Regulation of European Securities Markets, chaired by Baron 
Alexandre Lamfalussy and adopted by the Stockholm European Council in March 2001 aiming at more 
effective securities markets regulation) as developed further by Regulation (EU) No 1034/2010 of the 
European  Parliament  and  of  the  Council,  establishing  a  European  Supervisory  Authority  (European 
Insurance and Occupational Pensions Authority): at Level 1, the European Parliament and the Council 
adopt  a  directive  in  codecision  which  contains  framework  principles  and  which  empowers  the 
Commission acting at Level 2 to adopt delegated acts (Art 290 The Treaty on the Functioning of the 
European  Union  C  115/47)  or  implementing  acts  (Art  291  The  Treaty  on  the  Functioning  of  the 
European Union C 115/47). In the preparation of the delegated acts the Commission will consult with 
experts  appointed  by  Member  States.  At  the  request  of  the  Commission,  EIOPA  can  advise  the 
Commission on the technical details to be included in level 2 legislation. In addition, Level 1 legislation 
may empower EIOPA to develop draft regulatory or implementing technical standards according to Art 
10 and 15 of the EIOPA Regulation which  may be adopted by the Commission (subject to a right of 
objection by Council and Parliament in case of regulatory technical standards). At Level 3, EIOPA also 
works  on  recommendations,  guidelines  and  compares  regulatory  practice  by  way  of  peer  review  to 
ensure  consistent  implementation  and  application  of  the  rules  adopted  at  Levels  1  and  2.  Finally,  the 
Commission checks Member States' compliance with EU legislation and may take legal action against 
non-compliant Member States. 

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beyond  what  is  necessary  to  achieve  the  objective  to  carry  out  efficiently  the  task  of 
overseeing accurate transposition. 

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LEGISLATIVE FINANCIAL STATEMENT 

(cid:216) new 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative  

1.4.  Objective(s)  

1.5.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management method(s) envisaged  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on operational appropriations  

3.2.3. Estimated impact on appropriations of an administrative nature 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party participation in financing  

3.3.  Estimated impact on revenue

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Directive  of  the  European  Parliament  and  of  the  Council  on  Insurance  Mediation 
(IMD2) repealing the Directive 2002/92/EC on Insurance Mediation (IMD1) 

1.2. 

Policy area(s) concerned in the ABM/ABB structure26  

Internal Market – Financial markets 

1.3. 

Nature of the proposal/initiative  

X The proposal/initiative relates to a new action  

(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory 
action27  

(cid:133)The proposal/initiative relates to the extension of an existing action  

(cid:133) The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objectives 

1.4.1.  The  Commission's  multiannual 

strategic  objective(s) 

targeted  by 

the 

proposal/initiative  

to increase the safety and the efficiency of the financial markets; to boost the internal 
market for financial services. 

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned  

to create a level playing field; to reduce conflicts of interest; to improve advice for 
complex products; to reduce the burden for cross-border entry. 

26 
27 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 

EN 

74 

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1.4.3.  Expected result(s) and impact 

Specify 
the  effects  which 
beneficiaries/groups targeted. 

the  proposal/initiative 

should  have  on 

the 

The proposal aims at: extending the scope of application of IMD to all distribution 
channels; identifying, managing and mitigating conflicts of interest; raising the level 
of  harmonisation  of  administrative  sanctions  for  infringements  of  sales  rules; 
enhancing  the  suitability  and  the  objectiveness  of  advice;  ensuring  sellers' 
professional  qualifications  match  the  complexity  of  products  sold;  simplifying  and 
approximating the procedure for cross-border entry to markets across the EU. 

1.4.4. 

Indicators of results and impact  

Specify the indicators for monitoring implementation of the proposal/initiative. 

Reports  should  be  prepared  on  consumer  protection;  progress  made  in  achieving 
undistorted  competition;  developments  on  cross-border  business,  impact  of  the 
proposed measures on insurance markets. 

1.5 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term  

As a result of the application of the revised Directive in Member States: 

• 

The new rules would broaden consumer choice and quality of service received. 

Improved  information  and  increased  transparency  are  likely  to  lead  to  better 

• 
competition and benefit efficient intermediaries. 

The authorisation and supervision of insurance intermediaries and other sellers 
• 
of  insurance  products  would  be  harmonised  and  the  coordination  between  national 
supervisors would be improved. 

All  sellers  of  insurance  products  operating  in  the  EU  would  be  regulated 

• 
appropriately, taken into account proportionality and the need of SMEs. 

Professional  qualifications  for  all  sellers  of  insurances  will  match  the 

• 
complexity of the product sold. 

• 

More cross–border entry is predicted. 

Sanctioning  regime  would  be  increased  by  creating  an  appropriate  and 

• 
harmonised framework to prevent and address key violations of the Directive. 

1.5.2.  Added value of EU involvement 

1) A regulatory patchwork can lead to increased administrative costs and regulatory 
arbitrage. 

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2) A lack of action at EU level will likely result in an increase in the number of cases 
of mis-selling of insurance products. 

1.5.3.  Lessons learned from similar experiences in the past 

Sale  practices  of  pure  investment  products  are  already  regulated  by  the  Market  in 
Financial Instruments Directive (MiFID), while those substitutable investment-based 
insurances  will  also  be  regulated  in  a  similar  manner  at  EU  level  once  the  IMD  2 
proposal  is  approved.  MiFID  has  resulted  in  more  competition  between  financial 
instruments, more choice for investors and better consumer protection rules. 

1.5.4.  Coherence and possible synergy with other relevant instruments 

The  proposed  review  of  the  IMD  follows  the  reform  programme  proposed  by  the 
European  Commission  in  its  Communication  Driving  European  Recovery,  the 
'Europe 2020 Strategy' for smart, sustainable and inclusive growth. It is also coherent 
and consistent with the PRIPs initiative, MiFID II proposal and Solvency II.  

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1.6 

Duration and financial impact  

(cid:58) Proposal/initiative of limited duration28  

–  (cid:133) 

Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY  

– 

X 

Financial impact from 2014 to 2016  

(cid:133) 

Proposal/initiative of unlimited duration 

– 

– 

Implementation with a start-up period from YYYY to YYYY, 

followed by full-scale operation. 

1.7.  Management mode(s) envisaged29  

(cid:133) Centralised direct management by the Commission  

(cid:133)  Centralised  indirect  management  with  the  delegation  of  implementation  tasks 
to: 

–  (cid:133) 

executive agencies  

–  (cid:58) 

bodies set up by the Communities30 

–  (cid:133) 

national public-sector bodies/bodies with public-service mission  

–  (cid:133) 

persons entrusted with the implementation of specific actions pursuant 
to Title V of the Treaty on European Union and identified in the relevant basic 
act within the meaning of Article 49 of the Financial Regulation  

(cid:133) Shared management with the Member States  

(cid:133) Decentralised management with third countries  

(cid:133) Joint management with international organisations (to be specified) 

If  more  than  one  management  mode  is  indicated,  please  provide  details  in  the 
"Comments" section. 

Comments  

- 

28 

29 

30 

The proposal is of unlimited duration but after the initial 3 years period (during which EIOPA has more 
one-off tasks) EIOPA's permanent new tasks should be ensured by means of redeployment.  
Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the 
BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 
As referred to in Article 185 of the Financial Regulation. 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

Article  81  of  the  draft  Regulation  establishing  the  European  Insurance  and 
Occupational  Pension  Authority  (EIOPA)  provides  for  the  evaluation  of  the 
experience acquired at a result of the operation of EIOPA within three years from the 
effective  start  of  its  operation.  To  this  end,  the  Commission  will  publish  a  general 
report that will be forwarded to the European Parliament and to the Council. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

The  additional  resource  to  EIOPA  foreseen  as  a  result  of  the  current  proposal  is 
needed in order to allow EIOPA to carry out its competences and notably its role in: 

• 

Establishing, publishing and keeping up to date a single electronic register; 

Ensuring  harmonisation  and  coordination  of  rules  of  the  IMD  2  by  drafting 

• 
regulatory standards; 

Reinforcing and ensuring consistent application of national regulatory powers 

• 
by issuing guidelines and by drafting implementing technical standards; 

Gathering and publishing information in relation to sanctions and general good 

• 
rules; 

• 

Monitoring and evaluation of the proposal (3 reports). 

The lack of this resource could not ensure a timely and efficient fulfilment of the role 
of EIOPA. 

2.2.2.  Control method(s) envisaged  

Management  and  control  systems  as  provided  for  in  the  EIOPA  Regulation  will 
apply also with regard to the role of EIOPA according to the present proposal.  

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

For  the  purposes  of  combating  fraud,  corruption  and  any  other  illegal  activity,  the 
ions  of  Regulation  (EC)  No  1073/1999  of  the  European  Parliament  and  of  the 
Council of 25 May 1999 concerning investigations conducted by the European Anti-
Fraud Office (OLAF) shall apply to the EIOPA without any restriction. 

EIOPA shall accede to the Interinstitutional Agreement of 25 May 1999 between the 
European Parliament, the Council of the European Union and the Commission of the 
European  Communities  concerning  internal  investigations  by  the  European  Anti-

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Fraud  Office  (OLAF)  and  shall  immediately  adopt  appropriate  provisions  for  all 
EIOPA staff. 

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3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1. 

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

• 

Existing expenditure budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure

Contribution  

Number  
[Description………………………...……….] 

Diff./non-
diff. 
(31) 

from 
32
EFTA
countries 

from 
candidate 
33
countries

from third 
countries 

within the 
meaning of Article 
18(1)(aa) of the 
Financial 
Regulation  

Heading of 
multiannual 
financial 
framework 

12.0403.01 

[EIOPA  –  Subsidy under  Titles 1 and 
administrative 
2 
expenditure)] 

(Staff 

and 

Diff. 

YES 

NO 

NO 

NO 

• 

New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

31 
32 
33 

Diff. = Differentiated appropriations / Non-diff. = Non-Differentiated Appropriations 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 

EN 

80 

   EN 

 
 
 
 
                                                 
3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial 
framework:  

Number  Competitiveness for Growth and Employment 

EUR million (to 3 decimal places) 

DG: MARKT 

(cid:121) Operational appropriations  

12.0404.01 

of 

Appropriations 
administrative 
 from the envelope for specific programmes35  
Number of budget line 

an 

TOTAL appropriations 
for DG MARKT 

Year 
201434 

Year 
2015 

Year 
2016 

… enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

TOTAL 

Commitments 

Payments 

(1) 

(2) 

0,302 

0,271 

0,271 

0,302 

0,271 

0,271 

nature 

financed 

Commitments 

Payments 

(3) 

=1+1a 
+3 

=2+2a 

+3 

0,302 

0,271 

0,271 

0,302 

0,271 

0,271 

0,844 

0,844 

0,844 

0,844 

34 
35 

EN 

Year N is the year in which implementation of the proposal/initiative starts. 
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former "BA" lines), indirect research, 
direct research. 

81 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
(cid:121) TOTAL operational appropriations  

Commitments 

Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(4) 

(5) 

(6) 

0,302 

0,302 

0,271 

0,271 

0,271 

0,271 

TOTAL appropriations  
under HEADING 1A 
of the multiannual financial framework 

Commitments 

=4+ 6 

0,302 

0,271 

0,271 

Payments 

=5+ 6 

0,302 

0,271 

0,271 

Comments: 

0,844 

0,844 

0,844 

0,844 

After the initial 3 years period (2014-2016), during which EIOPA will have more one-off tasks, the situation will have to be reassessed in 
order to set the appropriate level of human resources actually needed to fulfil the tasks covered by this Directive and examine possible 
redeployment. 

The operational appropriations above are related to the specific tasks allocated to EIOPA according to the proposal: 

1) 

Tasks related to establishing, publishing and keeping up to date a single electronic database 

EIOPA 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 shall provide 
relevant information to EIOPA to enable it to manage such a register. This register should also show a hyperlink to each Member State's 
competent authority.  

2) 

Tasks related to harmonisation and coordination of rules of the IMD 2 by drafting standards (5 delegated acts and permanent tasks) 

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 Directive or to IMD2 Directive. 

EIOPA will have to draft five delegated acts regarding  

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1) 

2) 

3) 

4) 

5) 

the content of adequate professional knowledge and ability of the intermediary;  

conflicts of interests linked to the sale of insurance investment products,  

general principles and information to customers in relation to the sale of insurance investment products; 

detailed suitability and appropriateness test for the sale of insurance investment products, 

how the remuneration- including contingent commission - is disclosed to the customer. 

Permanent task 

EIOPA will also have a number of other permanent tasks, e.g. intervening in case of disagreements between home and host supervisory 
authorities,  particularly  in  situations  when  an  insurance  or  reinsurance  intermediary  is  not  meeting  its  obligations  when  transacting 
business in the Host Member State. 

3) 

Tasks  related  to  consistent  application  of  national  regulatory  powers  by  issuing  guidelines  and  by  drafting  implementing  technical 
standards (1 implementing standard, 2 guidelines, permanent tasks) 

EIOPA will have to draft implementing technical standards concerning the procedures and forms for submitting information in relation 
to administrative measures and sanctions imposed by Member States. 

EIOPA will also have to issue guidelines regarding supervision of cross-selling (tying) practices. It will have to issue guidelines on the 
types of administrative measures, sanctions and the level of administrative pecuniary sanctions. 

4) 

Tasks related to gathering and publishing information (repository and permanent tasks) 

EIOPA will have to present a standardised information sheet for general good rules to be completed by the competent authorities in each 
Member State.  

It will also have some permanent tasks:  

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EIOPA will have to collect and publish information about general good rules. It will have to ensure that information it receives relating 
to  stricter  national  provisions  on  information  requirements  and  conflicts  of  interests  is  communicated  to  insurance  undertakings, 
intermediaries and consumers. It shall publish information on sanction in its annual report as well. 

5) 

Tasks related to the monitoring and evaluation of the proposal (3 reports) 

EIOPA will have to produce two reports on the application of this Directive (one is after 4 year of the entry into force, the other one is 
after 6 years). In these reports, EIOPA shall undertake an evaluation of the structure of insurance intermediaries' markets. EIOPA shall 
examine whether the competent authorities are sufficiently empowered and have adequate resources to carry out their tasks. EIOPA will 
have to examine in a separate report whether the existing general good rules comply with the aim of the Internal Market. 

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Heading of multiannual financial 
framework:  

5 

" Administrative expenditure " 

DG:MARKT 

(cid:121) Human resources  
(cid:121) Other administrative expenditure  

TOTAL DG MARKT 

Appropriations  

Year 
2014 

Year 
2015 

Year 
2016 

0 

0 

0 

0 

0 

0 

0 

0 

0 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total 
= Total payments) 

commitments 

0 

0 

0 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

0,302 

0,271 

0,271 

Payments 

0,302 

0,271 

0,271 

Year 
201436 

Year 
2015 

Year 
2016 

EUR million (to 3 decimal places) 

TOTAL 

EUR million (to 3 decimal places) 

TOTAL 

0,844 

0,844 

36 

Year N is the year in which implementation of the proposal/initiative starts. 

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3.2.2.  Estimated impact on operational appropriations  

–  (cid:133) 

The proposal/initiative does not require the use of operational appropriations  

–  (cid:58) The proposal/initiative requires the use of operational appropriations, as explained below: 

The specific objectives of the proposal are set out under 1.4.2. They will be reached through the legislative measures proposed, to be 
implemented at national level, and through the involvement of EIOPA. While it is not possible to attribute concrete numerical outputs to 
each operational objective, EIOPA's role and its contribution to the objectives of the proposal are described in detail in section 3.2.1. 

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3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

– 

The  proposal/initiative  does  not  require  the  use  of  administrative 

X 
appropriations  

–  (cid:133) 

The 

proposal/initiative 

requires 

the 

use 

of 

administrative 

appropriations, as explained below: 

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3.2.3.2.  Estimated requirements of human resources  

– 

– 

X 

The proposal/initiative does not require the use of human resources  

The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

(cid:133) 
below: 

Comment: 

No additional human and administrative resources will be needed in DG MARKT as 
a  result  of  the  proposal.  Resources  currently  deployed  to  follow  directive 
2002/92/EC will continue to do so. 

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3.2.4.  Compatibility with the current multiannual financial framework  

– 

Proposal/initiative is compatible with the proposed MFF 2014-2020 (cid:133)
X 
 Proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the 
multiannual financial framework. 

The proposal provides for extra tasks to be carried out by EIOPA. This will require 
additional  resources  under  budget  line  12.0403.01.  This  is  already  included  in  the 
proposed multiannual financial framework 2014-2020. 

–  (cid:133) 

Proposal/initiative  requires  application  of  the  flexibility  instrument  or 

revision of the multiannual financial framework37. 

3.2.5.  Third-party contributions  

–  (cid:133) 

The  proposal/initiative  does  not  provide  for  co-financing  by  third 

parties  

–  (cid:58) 

The proposal/initiative provides for the co-financing estimated below: 

Appropriations in EUR million (to 3 decimal places) 

Year 
2014 

Year 
2015 

Year 
2016 

0,452 

0,407 

0,407 

0,452 

0,407 

0,407 

Member  States  via  EU 
national supervisors *  

TOTAL appropriations 
cofinanced  

Total 

1,266 

1,266 

*  Estimation  based  on  current  financing  mechanism  in  EIOPA  regulation  (Member  States 
60%, Community 40%) 

37 

See points 19 and 24 of the Interinstitutional Agreement. 

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3.3. 

Estimated impact on revenue  

– 

– 

(cid:58) 

(cid:133) 

Proposal/initiative has no financial impact on revenue. 

Proposal/initiative has the following financial impact: 

–  (cid:133) 

on own resources  

–  (cid:133) 

on miscellaneous revenue  

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Annex to the Legislative Financial Statement for a proposal for Directive of the 
European Parliament and of the Council on Insurance Intermediaries and the Sale of 
Insurance Products repealing the Directive 2002/92/EC on insurance mediation (IMD) 

The  costs  related  to  tasks  to  be  carried  out  by  EIOPA  have  been  estimated  for  staff 
expenditure (Title 1), in conformity with the cost classification in the EIOPA draft budget for 
2012 submitted to the Commission. The proposal of the Commission includes provisions for 
EIOPA  to  develop  and  draft  5  delegated  acts  and  1  implementing  technical  standard.  In 
addition,  EIOPA  will  also  have  to  develop  2  guidelines,  mainly  to  ensure  cooperation 
between authorities and 3 reports to monitor and evaluate the effectiveness of the Directive, 
will hold the register of intermediaries who intend to go cross-border and will have a number 
of other permanent tasks. It has been assumed that the Directive will enter into force in late 
2013, and therefore the additional EIOPA resources are required from 2014. Additional staff 
has  been  estimated  for  the  technical  standards,  guidelines  and  reports  to  be  produced  by 
EIOPA; and for other permanent tasks. As regards the nature of positions, the successful and 
timely delivery of new technical standards will require, in particular, additional policy, legal 
and impact assessment officers. 

The following assumptions were applied to assess the impact on number of FTEs required to 
develop delegated acts, technical standards, guidelines and reports: 

1. 

2. 

3. 

One policy officer drafts on average 1,5 delegated acts/technical standards a year and 
the same policy officer can draft the related guidelines or reports. Their jobs will also 
include  tasks  related  to  gathering  and  publishing  information  and  permanents  tasks 
(see above). This implies that 4 policy officers are needed;  

One impact assessment officer is needed for the technical standards above; 

One legal officer is needed for the technical standards and a guideline above. 

This means an additional 6 FTEs are needed from 2014. 

It  was  assumed  that  this  increase  in  FTEs  will  be  maintained  in  2015  and  2016  since  the 
standards will most likely be finalised only in 2015 and amendments may be required in 2016. 

Other assumptions: 

1. 

2. 

3. 

4. 

5. 

Based  on  the  distribution  of  FTEs  in  2012  draft  budget,  the  additional  6  FTEs  are 
assumed  to  be  comprised  of  4  temporary agents  (74%),  1  seconded  national  expert 
(16%) and 1 contractual agent (10%); 

Average  annual  salary  costs  for  different  categories  of  personnel  are  based  on  DG 
BUDG guidance; 

Salary weighting coefficient for Frankfurt of 0,948; 

Training costs assumed at €1,000 per FTE per year; 

Mission  costs  of  €10,000,  estimated  based  on  2012  draft  budget  for  missions  per 
headcount; 

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6. 

Recruiting-related  costs  (travel,  hotel,  medical  examinations,  installation  and  other 
allowances, removal costs, etc.) of €12,700, estimated based on 2012 draft budget for 
recruiting per new headcount. 

The  method  of  calculating  the  increase  in  the  required  budget  for  the  next  three  years  is 
presented  in  more  detail  in  table  below.  The  calculation  reflects  the  fact  that  that  the 
Community budget funds 40% of the costs. 

Cost types 

Calculations 

Amount (in thousands) 

2014 

2015 

2016 

total 

Title 1: Staff expenditure: 

11 Salaries and allowances  

- of which temporary agents 

=4*127*0,948 

482 

482 

482 

1446 

- of SNEs 

=1*73*0,948 

- of which contract agents 

=1*64*0,948 

12  Expenditure 
recruitment 

related 

to 

=6*12,7 

=6*10 

=6*1 

13 Mission expenses 

15 Training 

title 
Total 
expenditure 

1 

: 

Staff 

Of 
which 
contribution (40%) 

Community 

Of  which  Member  State 
contribution (60%) 

69 

61 

76 

60 

6 

754 

302 

69 

61 

60 

6 

69 

61 

60 

6 

207 

183 

76 

180 

18 

678 

271 

678 

271 

2,110 

844 

452 

407 

407 

1,266 

The  following  table  presents  the  proposed  establishment  plan  for  the  four  temporary  agent 
positions.  

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92 

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(cid:216) new 

EN 

93 

   EN