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European Insurance and Occupational Pensions Authority
News article2 February 20171 min read

EIOPA consults on guidelines on complex insurance-based investment products

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EIOPA published today a Consultation Paper on Guidelines on complex Insurance-Based Investment Products (IBIPs) that incorporate a structure which makes it difficult for the customer to understand the risks involved.

These Guidelines are developed in line with Articles 30(7) and (8) of the Insurance Distribution Directive (IDD). The IDD requires that normally an assessment of the suitability or appropriateness of an IBIP for the customer should be carried out by the insurance intermediary or undertaking as part of the sales process. However, where various conditions are satisfied, including that the IBIP is not complex, the IBIP may be sold without a suitability or appropriateness test, i.e. on an execution-only basis.

The Guidelines cover the assessment of all types of IBIPs. They include criteria to identify product features, which may be difficult for the customer to understand. They address, for example, the nature of the charges paid by the customer and ability for the customer to surrender the product before maturity. IBIPs which include such features will be deemed complex and therefore not eligible for sale via execution-only.

EIOPA invites stakeholders and interested parties to provide their feedback on the Guidelines via the following link.

The consultation period will end on 28 April 2017. Important to note: Comments submitted after the deadline or not submitted via the provided template cannot be processed.


Publication date
2 February 2017