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Overview of proposals

Ensure a level playing field between all participants involved in selling insurance products to achieve improved consumer protection, greater market integration and undistorted competition. Harmonise selling and disclosure rules for retail investment products across sectors in order to promote investor protection.
Who is affected?
Insurance and reinsurance undertakings and intermediaries (includes certain activities of aggregator websites and insurance policies sold ancillary to the sale of services). Professional claims managers and loss adjustors are also now in scope Investment product ‘manufacturers’ and those who sell investment products to retail investors.
Key changes
  • Expands the scope of the Directive to include sales by insurance and reinsurance undertakings (i.e. direct writers), certain activities of insurance aggregator websites (i.e. price comparison websites) and professional claims management and loss adjusting
  • Strengthened conduct of business and professionalism requirements, in particular relating to remuneration and cross-selling disclosure
  • Enhanced sales requirements for insurance investment products (in line with MIFID II)
  • Rules aimed at promoting proportionality and cross-border activity
  • Strengthened rules relating to complaints, redress and sanctions
  • Definition of an ‘investment product’ to include investment funds, retail structured products and investments packaged as insurance policies. This includes certain pension products
  • Disclosure of the KID, a concise and highly standardised document, when selling investment products to retail investors
  • Investment product ‘manufacturer’ is responsible for preparing and maintaining the KID and held liable if the KID is misleading, inaccurate, incomplete or inconsistent with other information documents required by law
  • Strengthened rules relating to complaints, redress and sanctions. Competent authorities will be given product intervention powers when KIDs fail to comply
Key impacts on firms
  • A need to assess business strategies for those activities brought into scope of the Directive and as a result of increased transparency requirements relating to remuneration and cross-selling
  • Read-across of MIFID II sales rules to insurance investment products, although anticipated, represent a large shake-up in insurance investment selling practices. The impact will vary across Member States depending on the extent that national regulators already include certain enhanced requirements for insurance investment products, as in the UK
  • Increased training requirements for staff, particularly in light of increased professionalism requirements (including a requirement for Continuing Professional Development)
  • Strategic challenges resulting from the introduction of the KID include: increased competition across investment products; assessing product range; and undertaking a ‘gap analysis’ of implementation requirements
  • Operational challenges include: getting the KID content right; ensuring effective processes in KID production and maintenance; dissemination to distributors; and providing appropriate training
Regulation or Directive?
Directive (minimum harmonisation) - Member States will be able to go further in their rules for the purposes of consumer protection. Regulation - removes scope for Member States to tailor requirements when they are transposed into national law meaning a more standardised approach to retail investment product disclosure across the EU.
Implementation timeline
If legislative negotiations are concluded within 2013, the Directive could be applicable in 2015. If legislative negotiations are concluded within 2013, the Directive could be applicable in 2015.


  • Vincent Gouverneur
    Partner - EMEA Investment Management Leader
  • Jérôme Lecoq
    Partner - Audit
  • Thierry Flamand
    Partner - Insurance Leader
  • Joël Vanoverschelde
    Partner - Technology & Enterprise Application Leader
  • Marc Noirhomme
    Directeur - Regulatory Consulting



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