Insurance Europe is supportive of the general intention to enhance consumer protection in the EU and to have high-level principles regarding knowledge and ability requirements which allow members states to specify the knowledge and ability requirements according to the particular activity pursued.
However, we are concerned that this proposed initiative from EIOPA seems to pre-empt legislative discussions on IMD 2. The relevant provisions in the European Commission’s IMD 2 proposal that cover knowledge and ability have not yet been finalised and are still subject to change. It is also not clear if the Commission will actually gain powers under IMD 2 to develop further standards in this area or not. As a result, it might be sensible to postpone any initiatives in this area until the appropriate legal text (ie IMD 2) has been finalised.
The unintended outcome of promoting supervisory convergence now could be that if the European Commission later receives powers to set knowledge and ability standards under IMD 2, such standards could be at odds with EIOPA’s report and good practices, which are being developed before IMD 2 has been finalised.