Question ID: 1622 - Intermediaries' conflict of interest in distributing on behalf of undertakings
Regulation Reference: (EU) No 2017/2359 - info requirements and conduct of business rules applicable
Topic: Other
Status: Final
Date of submission: 10 Jul 2018
Question
Are insurance intermediaries, who are under a contractual obligation to conduct insurance distribution business exclusively with one or more insurance undertakings, expected to develop their own policy for Conflicts of Interest?
EIOPA answer
EIOPA considers it important that intermediaries who distribute exclusively on behalf of one or more insurance undertakings are required to establish, implement and maintain an effective conflicts of interest policy, set out in writing and appropriate to their size and organisation and the nature, scale and complexity of their business in accordance with Article 4(1) of Delegated Regulation 2017/2359.
This does not prohibit intermediaries who distribute exclusively on behalf of one or more insurance undertakings, from receiving assistance and guidance from an insurance undertaking to which they are tied, in developing a conflicts of interest policy. However, the regulatory responsibility of establishing, implementing and operating the policy remains with the insurance intermediary.