Q&A

Question

Does Article 30 IDD, and especially Article 30(1) IDD, apply to pre-23 February 2018 contracts, particular where any ongoing advice is given and therefore the periodic suitability provision will apply?

EIOPA answer

The answer to this question is provided by the European Commission.

Article 30 of the Directive 2016/97/EU (Insurance Distribution Directive – IDD) shall apply only from the date that the Directive entered into application in the Member State in question. However, if after the entry into application of the IDD, new advice (advice as defined in Article 2(1) point 15 IDD) is provided under an existing contract, Article 30 IDD will apply, even if the contract has been concluded before the entry into application of the IDD. This can, for instance, happen in cases where the insurance intermediary or insurance undertaking provides advice on the switching of underlying investment assets in an existing contract (see Article 9(7) of Delegated Regulation (EU) 2017/2359).

The disclaimer provided by the European Commission:

The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies, in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.