The European Insurance and Occupational Pensions Authority (EIOPA) has completed its analysis of all published general good rules on registration and professional and organisational requirements that could potentially be non-compliant with the Insurance Distribution Directive (IDD).
Overall, the outcome of this exercise has been successful in terms of enhancing transparency for consumers and helping to reduce barriers to the taking-up and pursuit of the activity of insurance distribution in the internal market. Many NCAs implemented actions to ensure compliance with the IDD. These particular NCAs have adjusted their webpages and documents with information on general good rules, in order to:
- remove registration and organisational requirements which are under the exclusive competence of the home Member State (e.g. provisions requiring incoming insurance intermediaries to hold a specific diploma before engaging in insurance distribution in the host Member State);
- clarify that registration and organisational requirements are only imposed on domestically registered insurance intermediaries; and
- indicate specific general good provisions rather than quote compendia of national legislation.
An overview table with information on the adjustments made to general good rules in different Member States is available here:
EIOPA will continue to assess further cases and will report back on these in the future, where appropriate.
General good rules are national rules of the Member States which introduce additional requirements reflecting specificities of local markets and apply to incoming firms seeking to carry out cross-border business.
This exercise is a follow-up to EIOPA's report that analysed national general good rules in the context of the proper functioning of the IDD and the internal market in accordance with Article 11(3) of the IDD. The report concluded that some national competent authorities (NCAs) have published general good rules on registration and organisational requirements, which allow those NCAs as host Member States to impose additional requirements on passporting insurance distributors whereas, under the IDD, those rules are under the competence of the competent authority of the home Member State only.