EIOPA has published an Opinion, addressed to national competent authorities (NCAs), which focuses on consumer protection issues related to monetary incentives and remuneration between providers of asset management services and insurance undertakings.
While not an issue in all member states, EIOPA has found that unmitigated conflicts of interest and the management of unit-linked policies by insurers leads to risks of consumer detriment. Different levels of consumer protection may arise as a result of different national regimes regarding monetary practices and EU law’s principle-based approach. Consequently, EIOPA is aiming to promote consistent supervisory practices.
The Opinion makes recommendations to NCAs with regard to taking necessary and proportionate supervisory action. Within six months of the application of the IDD, PRIIPs KID Regulation, Product Oversight and Governance Delegated Regulation (C(2017) 6218 final) or the IBIPs Delegated Regulation (C(2017) 6229 final), NCAs have been asked to provide feedback on actions taken on the basis of this Opinion and report to EIOPA on the evolution of domestic market practices.