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EIOPA consults on proposals to increase retail investor protection

The European Commission asked the supervisory authorities to submit technical advice on a European retail investor strategy. At the end of January, the European Insurance and Occupational Pensions Authority (EIOPA) launched a public consultation on its draft advice.

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Der Vertrieb von Versicherungsanlageprodukten ist europaweit streng reguliert.

In Europe, the sale of Insurance-Based Investment Products (IBIPs) is subject to strict regulation.

The consultation focusses on consumer protection with regard to the sale of Insurance-Based Investment Products (IBIPs).

EIOPA presented proposals in five different areas:

  • Improving disclosures to consumers, including digital disclosures;
  • Assessing the risks and opportunities presented by new digital tools and channels;
  • Tackling damaging conflicts of interest in the sales process;
  • Promoting an affordable and efficient sales process;
  • Assessing the impact of complexity in the retail investment product market.

EIOPA's draft does not contain any finalised regulatory proposals, but rather gives abstract notes on how the European Commission might proceed, highlighting the advantages and disadvantages of different options.

The German Insurance Association (GDV) welcomes this balanced approach and advocates a more streamlined set of information and disclosure requirements, the coexistence of different remuneration systems and the avoidance of competitive disadvantages for sellers of Insurance-Based Investment Products.