Changes from report parliamentary committee draft to plenary report

AddedIn specific cases, when national specificities exist which have a direct impact on the key features of a product, such as the costs, performance and qualitative benefits, these shall be taken into account. For this purpose, national competent authorities shall communicate these to EIOPA and shall provide guidance on how such features affect the benchmarks, including by providing a range of the impact that such features of the product have on the compliance with the benchmarks.

AddedWhen the insurance-based investment product is manufactured and distributed in just one Member State, such product shall be subject to national benchmarks developed by the national competent authority of that Member State. EIOPA shall, after consulting ESMA, develop draft regulatory technical standards on the development of national benchmarks to ensure a harmonized approach within the Union, and shall periodically update those standards.

AddedEIOPA shall submit those draft regulatory technical standards to the Commission by ... [18 months after the date of entry into force of this amending Directive].

AddedPower is delegated to the Commission to adopt the regulatory technical standards referred to in the fourth subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.

Added2. The benchmarks referred to in paragraph 1 shall serve the sole purpose of a supervisory tool for national competent authorities in order to facilitate identification of potential outliers among insurance-based investment products on the market based on a risk-based approach and to allow them to conduct further inquiry when necessary.

AddedFor this purpose, national competent authorities may engage in cooperation with the private sector in order to support their efforts in market screening.

AddedWhen using this power, national competent authorities shall regularly check the insurance-based investment products on the market and compare them to the relevant benchmarks. If they identify products that deviate from the benchmark, they may require the insurance undertaking or insurance intermediary to provide an explanation for that deviation and, if they consider that the explanation duly justifies the deviation, they shall conclude the inquiry with a positive assessment.

AddedIf however, they consider that the explanation does not justify the deviation from the benchmark, they may require the insurance undertaking or insurance intermediary to correct its approach and comply with the product oversight and governance requirements in Article 25 of this Directive to provide the consumer with the intended qualitative and quantitative features of the concerned product. If the undertaking or intermediary makes such correction, the national competent authorities shall conclude the inquiry with a positive assessment.

AddedWhere an insurance undertaking or insurance intermediary fails to provide an explanation or the explanation does not justify the deviation of the product from the benchmark and the undertaking or intermediary fails to align the qualitative and quantitative features of the product with the relevant benchmark, the national competent authorities may require the insurance undertaking or insurance intermediary, as a measure of last resort, to remove that product from the market.’;

Added(7) the following Articles 12a and 12b are inserted:

Added‘Article 12 a

AddedCooperation and exchange of information with EIOPA

Added1. The competent authorities shall cooperate with EIOPA for the purposes of this Directive.

Added2. The competent authorities shall, without undue delay, provide EIOPA with all information EIOPA needs to carry out its duties under this Directive.

AddedCollaboration platforms

Added1. EIOPA may, in the case of justified concerns about negative effects on policyholders, on its own initiative or at the request of one or more of the competent authorities, set up and coordinate a collaboration platform, to strengthen the exchange of information and to enhance collaboration between the relevant supervisory authorities where an insurance or reinsurance distributor carries out, or intends to carry out, insurance distribution activities which are based on the freedom to provide services or the freedom of establishment, or where an insurance manufacturer distributes, or intends to distribute products in another Member State using insurance distributors registered in the host Member State, and where such activities are of relevance with respect to the host Member State’s market. If a collaboration platform is set up at the request of a competent authority, that competent authority shall notify the competent authority of the home Member State of its justified concerns about negative effects on investors.

Added2. Paragraph 1 shall be without prejudice to the right of the relevant supervisory authorities to set up a collaboration platform where they all agree to do so.

Added3. The setting up of a collaboration platform pursuant to paragraphs 1 and 2 is without prejudice to the supervisory mandate of the supervisory authorities of the home Member State and host Member State provided for in this Directive.

Added4. Without prejudice to Article 35 of Regulation (EU) No 1094/2010, at the request of EIOPA, the relevant competent authorities shall provide all necessary information in a timely manner.

Added5. Where two or more competent authorities of a collaboration platform disagree about the procedure or content of an action to be taken, or inaction, EIOPA may, at the request of any relevant competent authority or on its own initiative, assist the competent authorities in reaching an agreement in accordance with Article 19(1) of Regulation (EU) No 1094/2010.

Added6. In the event of disagreement within the platform and where there are serious concerns about negative effects on policyholders or about the content of an action or inaction to be taken in relation to an insurance or reinsurance distributor, EIOPA may decide to initiate and coordinate joint on-site inspections. In that case, EIOPA shall invite the competent authority of the home Member State, as well as other relevant competent authorities of the collaboration platform, to participate in such joint on-site inspection▌.’;

Added(8) Article 14 is replaced by the following:

Added‘Article 14

AddedComplaints

AddedMember States shall ensure that insurance and reinsurance distributors establish appropriate procedures and arrangements, including electronic communication channels, to ensure that complaints from customers and other interested parties, especially consumer associations, are dealt with properly and that there are no restrictions on customers and other interested parties exercising their rights under this Directive. Those procedures and arrangements shall allow customers and other interested parties to register complaints and receive replies in the same language in which the communication material or any contractual documents were provided. In all cases, complainants shall receive replies within 40 working days.’;

Added(9) the following Articles 16a and 16b are inserted:

Added‘Article 16a

AddedFinancial education of customers

Added1. Member States shall define and implement information and educational actions in order to promote and increase customers’ education and knowledge in relation to the responsible purchase of insurance products when accessing insurance services or ancillary services.

AddedMember States shall consider the contribution of national competent authorities, universities and relevant stakeholders when designing the educational instruments to promote financial literacy. In that regard, Member States shall consider introducing compulsory teaching content in their national school curricula.

AddedMember States may establish programmes to fund consumer organisations and independent investor or shareholder organisations that support the education of retail clients and potential retail clients in relation to responsible investment when accessing investment services or ancillary services.

Added1a. National competent authorities shall engage in a dialogue and carry out, at their own initiative, peer reviews to assess the applicability of best practices to their national system.

Added1b. The Commission, in collaboration with the ESAs, the European Investment Bank and the European Central Bank shall:

Added(a) facilitate cooperation and exchange of best practices among Member States and stakeholders active in education and finance;

Added(b) establish clear targets on financial literacy;

Added(c) establish a Platform on Financial education and literacy, which shall be composed of representatives of:

Added- the European Central Bank;

Added- the European Investment Bank;

Added- the ESAs;

Added- each Member State, in the education and finance sectors, designated by the national competent authorities;

Added- European and national consumer associations;

Added- European financial industry federations.

AddedInternational organisations and other public and private stakeholders may be invited on an ad hoc basis.

AddedThe Platform shall be chaired by the Commission. Representatives shall be appointed for a two-year renewable mandate.

AddedMember States shall promote and take measures for the development of financial literacy skills.

AddedBy ... [PO please insert the date = 12 months after the entry into force of this amending Directive] and every three years thereafter, Member States shall report to the Commission on the implementation of paragraph 1. The Commission shall issue guidelines regarding the scope of such reports.

AddedBy ... [ PO please insert the date = 12 months after the entry into force of this amending Directive] and every five years thereafter, the Commission shall submit a report to the European Parliament and the Council on the implementation of measures in relation to paragraph 1, outlining the best practices, the possible way forward as well as the observed evolution and results between each report.

Added1c. Member States are encouraged to:

Added(a) coordinate and cooperate on matters related to financial education at Union level, such as through the use of the open methods of coordination and joint exchanges on best practices between the finance ministers of the Union and the education ministers of the Union, as well as with other Union institutions;

Added(b) promote financial education and training, also through lifelong learning opportunities at national level, as for example public-private partnerships, or through mentoring programmes.

AddedThe Commission and the Member States shall aim to strengthen cooperation in the field of financial education within the European Education Area, for example through the Erasmus+ Teacher Academies initiative. Member States are encouraged to use the existing tools and Union funding programmes at Union and national level in order to promote, support and enable financial education and training, and to ensure the mutual recognition of diplomas across the European Union.

Added1d. Member States shall consider the contributions of national competent authorities, universities and relevant stakeholders when designing the educational instruments to promote financial literacy.

AddedFinancial education of customers and marketing communication

AddedFinancial education material that aims to support individuals’ financial literacy by enabling them to acquire financial competences, and that does not directly promote or entice investment in one or several insurance products, or categories thereof, or specific insurance services, shall not be deemed to constitute a marketing communication for the purposes of this Directive.’;

Added(10) in Article 17, paragraph 2 is replaced by the following:

Added‘2. Member States shall ensure that all information related to the subject of this Directive, including marketing communications, shall be fair, clear and not misleading.

AddedMarketing communications shall be clearly identifiable as such and shall clearly identify the insurance undertaking or insurance distributor responsible for their content and distribution, regardless of whether the communication is made directly or indirectly by that insurance undertaking or insurance distributor.’;

Added(11) Article 18 is replaced by the following:

Added'Article 18General information to be provided to the customer1. Member States shall ensure that in good time before the customer is bound by an insurance contract or offer, the following information about the insurance undertaking which is party to the proposed contract shall be communicated to the customer:

Added(a) the name of the undertaking and its legal form;