Insurance Europe welcomes the opportunity to comment on EIOPA’s consultation paper on conflicts of interest in direct and intermediated sales of insurance-based investment products.
We would like to stress, however, that discussions are still ongoing on IMD 2 and trialogue negotiations have yet to take place, which will have a significant impact on the rules applicable to insurance-based investment products. EIOPA should therefore avoid tackling issues that are neither within the remit of the IMD 1.5 provisions, nor are certain to be included in the final IMD 2 text, such as a quality enhancement criterion or a disclosure of inducements criterion. To do so would be to seriously undermine the political decisions taken by the European co-legislators.
We would support a recognition of the need to take into account the principle of proportionality. Many distributors of insurance products are small and medium sized enterprises and in some cases are run by one self-employed individual, where a separation of functions would simply not be possible, so any measures developed should not give rise to an onerous regulatory burden for SMEs.