BILA lunchtime lecture - Friday 16th November 2012

Chairman: Michael Mendelowitz

INSURANCE MEDIATIONThe European Commission’s

proposal for a recast Insurance Mediation Directive

Jonathan Foster

Agenda Context

Factors driving review Commission action Remuneration

Legal form and structure Content: Changes Questions / discussion

Context: factors driving review Implementation check outcome 2008 Financial crisis G20 and consumer protection Solvency II level 2

Context: the Commission’s actions

Request for advice to CEIOPS, Q1 2010 Commission public consultation, Q4,

2010 Commission Public hearing, Q4 2010

Speech by Sharon Bowles, MEP, Chair, ECON Speech By Michel Barnier, Commissioner for

Internal Markets and Services (DG Markt)

IMD page: Commissionhttp://ec.europa.eu/internal_market/insurance/consumer/mediation/index_en.htm#maincontentSec3

Context: remuneration Remuneration, transparency and conflicts

of interest post 2008 Single market directive provisions

Form and structure Legislative basis

A recast directive (consolidation and amendment)

Post-Lisbon, post Lamfalussy Delegation to the Commission ESAs: binding technical standards and

guidelines

Commission Proposal 3.7.2012http://eur-lex.europa.eu/LexUriServ/

LexUriServ.do?uri=COM:2012:0360:FIN:EN:PDF

Form and structure Not maximum harmonisation Not Lamfalussy; but Commission: delegated acts

Adequate knowledge and ability Conflicts of interest Customers’ best interests and suitability

EIOPA Guidelines supervision of bundling Guidelines sanctions Binding Technical Standards on breaches

reporting

ContentScope (Article 1) and Definitions (Article 2)

Content: definitionsDefinitions (Article 2)

ContentDeclaration procedure

ContentOrganisational measures: CPD, general good ruleshttp://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2000:043:0005:0027:EN:PDF

ContentConduct of business rules: best interests; fair clear and not misleading

Content

General remuneration provision

ContentAdditional consumer protection for insurance

investment products

Content

Article 24 1. Repeats requirement to act honestly, fairly and professionally in accordance with the best interests of its customers5. If advice is given on an independent basis the intermediary cannot accept or receive fees, commissions or any monetary benefits paid or provided by any third party . . . in relation to the provision of the service to customers.

Additional consumer protection for insurance investment products

Legislative timetablehttp://www.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=SWD(2012)0191

The European Commission’s proposal for a recast Insurance

Mediation Directive

Jonathan Foster

INSURANCE MEDIATION

QUESTIONS AND DISCUSSION

BILA would like to give their thanks to Jonathan Foster for his talk today.Next lecture December 7th