Question ID: 1643
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
Could the provisions on switching apply only when providing advice on switching between underlying investment assets within a product? Or are insurance intermediaries and untertakings expected to apply this rule when switching between products? Are insurance undertakings and intermediaries also expected to analyse the costs and benefits of the main product as well as the underlyings?
EIOPA answer
Article 9(7) of Delegated Regulation 2017/2359 only applies to switching between underlying investment assets such as funds, not concluding a new contract of insurance. However, when providing advice on switching products, the requirements of Article 30, IDD and Article 9 of Delegated Regulation 2017/2359 more widely, must be met, and this would include a cost-benefit analysis as part of the advice given.