EC has published for consultation a draft Delegated Regulation supplementing the IDD concerning information requirements and conduct of business rules applicable to the distribution of insurance-based investment products.
The IDD contains a specific chapter, with additional conduct of business requirements, on the sale of insurance-based investment products. The Delegated Regulation, which is based on previous technical advice delivered to EIOPA, aims to specify the criteria and practical details for the application of the rules on conflicts of interest, on inducements and on the assessment of suitability and appropriateness.
The draft Delegation Regulation explains that the provisions of IDD, in respect of conflicts of interest and assessment of suitability and appropriateness, are closely aligned with those of MiFID II and consequently the relevant rules in the present Delegated Regulation follow closely the Commission Delegated Regulation on MiFID II.
With regard to inducements, the draft Delegated Regulation provides a list of criteria for assessing whether inducements paid or received by an insurance intermediary or an insurance undertaking increase the risk of a detrimental impact on the quality of the relevant service.
EC asks for comments by 17 August 2017.