S.I. No. 229/2018 - European Union (Insurance Distribution) Regulations 2018

• (2) An insurance distributor shall only propose a contract that is consistent with the customer’s insurance demands and needs, taking into account the complexity of the insurance product being proposed and the type of customer.

• (3) Where an insurance distributor is providing advice to a customer prior to the conclusion of a contract with that customer relating to the provision of a specific insurance product, the insurance distributor shall provide the customer with a recommendation that explains why a particular product would best meet the customer’s demands and needs taking into account the complexity of the insurance product being proposed and the type of customer.

• (4) An insurance intermediary who informs a customer that the intermediary gives advice on the basis of a fair and personal analysis shall give that advice based on an analysis of a sufficiently large number of insurance contracts available on the market to enable the intermediary to make a recommendation, in accordance with professional criteria, as to which insurance contract adequately meets the customer’s needs.

• (5) Without prejudice to Regulations 192 and 193 of the Regulations of 2015, the insurance distributor shall, prior to the conclusion of a contract, provide the customer with the relevant information about the insurance product in a comprehensible form to allow the customer to make an informed decision, while taking into account the complexity of the insurance product and the type of customer, irrespective of whether or not advice is given and the insurance product is part of a package pursuant to Regulation 37.

• (6) The information referred to in paragraph (5) shall be provided by way of a standardised insurance product information document on paper or on another durable medium drawn up by the manufacturer of the non-life insurance product, when dealing with the distribution of non-life insurance products specified in Schedule 1 to the Regulations of 2015.

• (7) The insurance product information document referred to in paragraph (6) shall—

• (a) be a short and stand-alone document,

• (b) be presented and laid out in a way that is clear and easy to read, using characters of a readable size,

• (c) be no less comprehensible in the event that, having been originally produced in colour, it is printed or photocopied in black and white,

• (d) be written in the English language or, if agreed by the customer and the distributor, in another language,

• (e) be accurate and not be misleading,

• (f) contain the title ‘Insurance Product Information Document’ at the top of the first page, and

• (g) include a statement that complete pre-contractual and contractual information on the product is provided in other documents.

• (8) The insurance product information document referred to in paragraph (6) shall be provided together with information required pursuant to other relevant European Union legislative acts or national law on the condition that all the requirements set out in paragraphs (1) to (3) are met.

• (9) The insurance product information document referred to in paragraph (6) shall contain the following information:

• (a) information about the type of insurance;

• (b) a summary of the insurance cover, including the main risks insured, the insured sum and, where applicable, the geographical scope and a summary of the excluded risks;

• (c) the means of payment of premiums, the frequency of payments and the duration and number of payments;

• (d) the main exclusions specifying where claims cannot be made;

• (e) the obligations at the commencement of the contract;

• (f) the obligations during the term of the contract;

• (g) the obligations in the event that a claim is made;

• (h) the term of the contract including the start and end dates of the contract;

• (i) the means of terminating the contract.

Information exemptions and flexibility clause

• (2) Where the insurance distributor is responsible for the provision of mandatory occupational pension arrangements and an employee becomes a member of such an arrangement without having taken an individual decision to join it, the insurance distributor shall provide the information referred to in this Part to the employee promptly after their enrolment in the arrangement concerned.

Information conditions

• (a) on paper or other durable medium, where the conditions set out in paragraph (3) are met or a website where the conditions set out in paragraph (4) are met,

• (b) in a clear and accurate manner, comprehensible to the customer,

• (c) be written in the English language or, if agreed by the customer and the distributor, in another language, and

• (d) free of charge.

• (2) Where the information referred to in paragraph (1) is provided using a durable medium other than paper or by means of a website, a paper copy shall be provided to the customer upon request and free of charge.

• (3) The information referred to in paragraph (1) may be provided using a durable medium other than paper where the following conditions are met:

• (a) the use of the durable medium is appropriate in the context of the business conducted between the insurance distributor and the customer;

• (b) the customer has been given the choice between information on paper and on a durable medium, and has chosen the latter medium.

• (4) The information referred to in paragraph (1) may be provided by means of a website if it is addressed personally to the customer or if the following conditions are met:

• (a) the provision of that information by means of a website is appropriate in the context of the business conducted between the insurance distributor and the customer;

• (b) the customer has consented to the provision of that information by means of a website;

• (c) the customer has been notified electronically of the address of the website, and the place on the website where that information can be accessed;

• (d) it is ensured that that information remains accessible on the website for such period of time as the customer may reasonably need to consult it.

• (5) The provision of information in accordance with paragraphs (3) and (4) shall only be regarded as appropriate in the context of the business conducted between the insurance distributor and the customer where the customer has provided an electronic address for the purposes of that business to the insurance distributor.

• (6) If an insurance distributor uses telephone selling to sell an insurance product to a customer, the insurance distributor shall ensure that the information given to the customer complies with the requirements of the European Communities (Distance Marketing of Consumer Financial Services) Regulations 2004 ( S.I. No. 853 of 2004 ) or with the corresponding law of the relevant Member State concerned and, even if the customer has chosen to obtain prior information on a durable medium other than paper in accordance with paragraph (3), information shall be provided by the insurance distributor to the customer in accordance with paragraph (1) immediately after the conclusion of the insurance contract.

Cross-selling

• (a) specify the demands and needs of the customer in relation to the insurance products that form part of the overall package or the same agreement,

• (b) inform the customer whether it is possible to buy the different components separately, and

• (c) where subparagraph (b) applies, shall provide an adequate description of the different components of the package or agreement as well as separate evidence of the costs and charges of each component.

• (2) In the circumstances referred to in paragraph (1) and where the risk or the insurance coverage resulting from such a package or agreement offered to a customer is different from that associated with the components taken separately, the insurance distributor shall provide an adequate description of the different components of the package or agreement and the manner in which their interaction modifies the risk or the insurance coverage.

• (3) Where an insurance product is ancillary to a good or a service which is not insurance as part of a package or the same agreement, the insurance distributor shall—

• (a) specify the demands and needs of the customer in relation to the insurance products that form part of the overall package or the same agreement, and

• (b) offer the customer the possibility of buying the good or service separately, other than where an insurance product is—

• (i) ancillary to an investment service or activity as defined in Regulation 3(1) of the European Union (Markets in Financial Instruments) Regulations 2017 ( S.I. No. 375 of 2017 ),

• (ii) a credit agreement as defined in Regulation 3(1) of the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 ( S.I. No. 142 of 2016 ), or

• (iii) a payment account as defined in Regulation 2(1) of the European Union (Payment Accounts) Regulations 2016 ( S.I. No. 482 of 2016 ).

• (4) Nothing in this Regulation shall prevent the distribution of insurance products which provide coverage for various types of risks.

Product oversight and governance requirements

• (2) The process for product approval referred to in paragraph (1) shall—

• (a) be proportionate and appropriate to the nature of the insurance product,

• (b) specify an identified target market for each product,

• (c) ensure that all relevant risks to such identified target market are assessed and that the intended distribution strategy is consistent with the identified target market, and

• (d) take reasonable steps to ensure that the insurance product is distributed to the identified target market.

• (3) An insurance undertaking shall understand and regularly review the insurance products it offers or markets, taking into account any event that could materially affect the potential risk to the identified target market, to assess at least whether each product remains consistent with the needs of the identified target market and whether its intended distribution strategy remains appropriate.

• (4) Insurance undertakings and intermediaries which manufacture insurance products, shall make available to distributors all appropriate information on the insurance product and the product approval process, including the identified target market of the insurance product.

• (5) An insurance distributor who advises on, or proposes, insurance products which it does not manufacture shall have in place adequate arrangements to obtain the information on the insurance product and the product approval process, including the identified target market of the insurance product and to understand the characteristics and identified target market of each insurance product.

• (6) Any policies, processes or arrangements pursuant to this Regulation shall be without prejudice to all other requirements under these Regulations including those relating to disclosure, suitability or appropriateness, identification and management of conflicts of interest, and inducements.

• (7) This Regulation shall not apply to insurance products which consist of the insurance of large risks.

Chapter 2 Additional requirements in relation to insurance-based investment products

Additional information and transparency requirements for insurance-based investment products

• (2) Notwithstanding Regulation 30, an insurance intermediary or insurance undertaking carrying out the distribution of insurance-based investment products shall maintain and operate effective organisational and administrative arrangements proportionate to the activities performed, the insurance products sold and the type of the distributor in order to take all reasonable steps designed to prevent conflicts of interest, as determined under paragraphs (3) and (4), from adversely affecting the interests of its customers.

• (3) An insurance intermediary or insurance undertaking shall take all appropriate steps to identify conflicts of interest between themselves, including their managers and employees, or any person directly or indirectly linked to them by control, and their customers or between one customer and another, that arise in the course of carrying out any insurance distribution activities.

• (4) An insurance intermediary or insurance undertaking shall clearly disclose to the customer the general nature or sources of a conflict of interest, in good time before the conclusion of an insurance contract where the organisational or administrative arrangements made by the insurance intermediary or insurance undertaking, as the case may be, in accordance with paragraph (2) to manage conflicts of interest are not sufficient to ensure, with reasonable confidence, that risks of damage to customer interests will be prevented.

• (5) An insurance intermediary or insurance undertaking making a disclosure under paragraph (4) shall do so—

• (a) on a durable medium, and

• (b) include sufficient detail, taking into account the nature of the customer, to enable that customer to take an informed decision with respect to the insurance distribution activities in the context of which the conflict of interest arises.

• (6) Where an insurance intermediary provides advice on an insurance-based investment product and informs a customer that such advice is provided on an independent basis, the intermediary shall assess a sufficient range of insurance products available on the market which shall be sufficiently diverse with regard to their type and product providers to ensure that the customer’s objectives can be suitably met and shall not be limited to insurance products issued or provided by entities having close links with the intermediary.

Commissions, fees and non-monetary benefits paid in respect of independent advice

• (2) Insurance distributors shall formulate and implement a policy to ensure that any fees, commission or non-monetary benefits paid or provided by any third party, or a person acting on behalf of a third party, in relation to the provision of independent advice are allocated and transferred to each individual customer.

Information to customers

• (a) when advice is provided, whether the insurance intermediary or insurance undertaking will provide the customer with a periodic assessment of the suitability of the insurance-based investment products recommended to that customer in accordance with Regulation 42;

• (b) as regards the information on insurance-based investment products and proposed investment strategies, appropriate guidance on, and warnings of, the risks associated with the insurance-based investment products or in respect of particular investment strategies proposed;

• (c) all costs and related charges of the insurance-based investment product recommended or marketed to the customer, including the cost of advice, where relevant, and how the customer may pay for it, also including any third party payments.

• (2) Where an insurance intermediary or insurance undertaking is providing information in respect of costs and related charges, in accordance with paragraph (1)(c), that are not caused by the occurrence of underlying market risk, those costs and related charges shall be provided in an aggregated form that allows the customer to understand the overall cost as well as the cumulative effect on the return of the investment and, where the customer so requests, an itemised breakdown of the costs and charges shall be provided.

• (3) Where applicable, information referred to in paragraph (2) shall be provided to the customer on a regular basis, at least annually, during the life cycle of the investment.

• (4) The information referred to in paragraphs (1) and (2) shall be provided in a comprehensible form in such a manner that customers or potential customers are reasonably able to understand the nature and risks concerning the insurance-based investment product offered and, consequently, to take investment decisions on an informed basis.

• (5) Notwithstanding the obligations on insurance intermediaries set out in Regulation 31(1)(i) and (j), and (3), and the obligations on insurance undertakings set out in Regulation 32(3), an insurance intermediary or insurance undertaking shall be regarded as having fulfilled their obligations under Regulations 30(1) and 39(2) to (5) where they pay or are paid any fee or commission, or provide or are provided with any non-monetary benefit in connection with the distribution of an insurance-based investment product or an ancillary service, to or by any party except the customer or a person on behalf of the customer only where the payment or benefit—

• (a) does not have a detrimental impact on the quality of the relevant service to the customer, and

• (b) does not impair compliance with the insurance intermediary’s, or insurance undertaking’s, duty to act honestly, fairly and professionally in accordance with the best interests of its customers.

• (6) Information to be provided for the purposes of paragraph (1) or (2) may be provided in a standardised format.

Assessment of suitability and appropriateness, and reporting to customers

• (a) the customer or potential customer’s knowledge and experience in the investment field relevant to the specific type of product or service;

• (b) the customer’s financial situation including their ability to absorb losses;

• (c) the customer’s investment objectives, including that person’s risk tolerance.

• (2) Where an insurance intermediary or insurance undertaking provides investment advice recommending a package of services or products bundled in accordance with Regulation 37, the insurance intermediary or insurance undertaking, as the case may be, shall ensure the overall bundled package is suitable.

• (3) Notwithstanding Regulation 34(1), (2) and (3), an insurance intermediary or insurance undertaking carrying out insurance distribution activities other than those referred to in paragraph (1) shall, in relation to sales where no advice is given, ask the customer or potential customer to provide information regarding that person’s knowledge and experience in the investment field relevant to the specific type of product or service offered or demanded so as to enable the insurance intermediary or the insurance undertaking, as the case may be, to assess whether the insurance service or product envisaged is appropriate for the customer.

• (4) Paragraph (3) shall not apply where all of the following requirements are satisfied:

• (a) the activities refer to either of the following insurance-based investment products:

• (i) contracts which only provide investment exposure to the financial instruments deemed non-complex under Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014⁶ and do not incorporate a structure which makes it difficult for the customer to understand the risks involved;

• (ii) other non-complex insurance-based investments for the purpose of paragraph (3) and this paragraph;

• (b) the insurance distribution activity is carried out within the State and at the initiative of the customer or potential customer;

• (c) the customer or potential customer has been clearly informed that, in the provision of the insurance distribution activity, the insurance intermediary or the insurance undertaking, as the case may be, is not required to assess the appropriateness of the insurance-based investment product or insurance distribution activity provided or offered and that the customer or potential customer does not benefit from the corresponding protection of the relevant conduct of business rules; such a warning may be provided for in a standardised format;

• (d) the insurance intermediary or insurance undertaking complies with its obligations under Regulation 39.

• (5) Where an insurance intermediary or insurance undertaking carries out an assessment in accordance with paragraph (3) in respect of a package of services or products bundled in accordance with Regulation 37, the insurance intermediary or insurance undertaking, as the case may be, shall determine whether the overall bundled package is appropriate.

• (6) Where the insurance intermediary or insurance undertaking determines, on the basis of the information received under paragraph (3), that the product is not appropriate for the customer or potential customer, the insurance intermediary or insurance undertaking, as the case may be, shall warn the customer or potential customer to that effect.

• (7) If a customer or potential customer does not provide the information referred to in paragraph (3), or where they provide insufficient information regarding their knowledge and experience, the insurance intermediary or insurance undertaking shall warn them that it is not in a position to determine whether the product envisaged is appropriate for them.

• (8) Prior to the conclusion of a contract for an insurance-based investment product, an insurance intermediary or the insurance undertaking providing advice on the product shall provide the customer with a suitability statement on a durable medium specifying the advice given and how that advice meets the preferences, objectives and other characteristics of the customer in accordance with the requirements set out in Regulation 36(1), (2) and (3).

• (9) If an insurance intermediary or the insurance undertaking enters into a contract for an insurance-based investment product with a customer using a means of distance communication, which prevents the prior delivery of the suitability statement, the insurance intermediary or the insurance undertaking, as the case may be, shall provide the suitability statement on a durable medium immediately after the customer is bound by any contract, provided both of the following conditions are met:

• (a) the customer has consented to receiving the suitability statement without undue delay after the conclusion of the contract;

• (b) the insurance intermediary or insurance undertaking has given the customer the option of delaying the conclusion of the contract in order to receive the suitability statement in advance of such conclusion.

• (10) Information to be given for the purposes of paragraphs (6) and (7) may be provided in a standard format and shall be provided on a durable medium.

Record keeping and reporting obligations for insurance-based investment products

• (2) The rights, obligations and terms, referred to in paragraph (1), of the parties to the contract may be incorporated by reference to other documents or legal texts.

• (3) An insurance intermediary or insurance undertaking shall provide the customer with adequate reports on the service provided on a durable medium that includes—

• (a) periodic communications to customers, taking into account the type and the complexity of insurance-based investment products involved and the nature of the service provided to the customer, and

• (b) where applicable, the costs associated with the transactions and services undertaken on behalf of the customer.

• (4) Where an insurance intermediary or insurance undertaking has informed the customer that it will carry out a periodic assessment of suitability, the insurance intermediary or insurance undertaking, as the case may be, shall provide a periodic report that contains an updated statement of how the insurance-based investment product meets the customer’s preferences, objectives and other characteristics of the customer.

Part 8 Sanctions and other measures

Sanctions in Regulations 46 and 47, and Act of 1942

• (a) following an inquiry under section 33AO, or

• (b) in accordance with section 33AR or section 33AV,

of the Act of 1942 in respect of any contravention by a person falling within Regulation 45.

• (2) The Bank shall take all measures necessary to ensure that any such sanction is implemented.

Contraventions

• (a) a failure by a person to register insurance or reinsurance distribution activities in accordance with Part 3;

• (b) use by an insurance or reinsurance undertaking or insurance or reinsurance intermediary of the insurance or reinsurance distribution services of a person referred to in subparagraph (a);

• (c) obtaining a registration as an insurance, reinsurance or ancillary insurance intermediary through false statements or any other irregular means in contravention of Part 3;

• (d) failure by an insurance distributor to meet the professional and organisational requirements set out in Part 5;

• (e) failure by an insurance undertaking or insurance intermediary to comply with conduct of business requirements set out in Part 7, in relation to the distribution of insurance-based investment products;

• (f) failure by an insurance distributor to comply with conduct of business requirements set out in Regulations 30 to 38, in relation to any insurance product other than those referred to in subparagraph (e).

Sanctions — contravention of Regulation 45(e)

• (2) The sanctions specified, for the purpose of paragraph (1), are the following:

• (a) a public statement, which states the person responsible for the contravention and the nature of the contravention;

• (b) an order requiring a person responsible for the contravention to cease, and desist from, the conduct concerned;

• (c) in the case of an insurance intermediary, withdrawal of its registration under these Regulations;

• (d) in respect of any person who is discharging managerial responsibilities in an insurance intermediary or insurance undertaking that is held responsible for a contravention, a temporary ban on that person from the exercise of managerial responsibilities in any insurance intermediary or insurance undertaking;

• (e) in the case of a legal person—

• (i) a direction to pay to the Bank a monetary penalty not exceeding €5,000,000, or not exceeding 5% of the total annual turnover of the legal person according to the last available accounts approved by the management body, and Regulation 48 supplements this subparagraph, or

• (ii) a direction to pay to the Bank a monetary penalty not exceeding twice the amount of the profits gained or losses avoided as a result of an infringement where that amount can be determined even if the amount determined is greater than the amount specified in clause (i);

• (f) in the case of a natural person—

• (i) a direction to pay to the Bank a monetary penalty not exceeding €700,000, or

• (ii) a direction to pay to the Bank a monetary penalty not exceeding twice the amount of the profits gained or losses avoided as a result of an infringement where that amount can be determined even if the amount determined is greater than the amount specified in clause (i).

Sanctions — contravention of Regulation 45(a) to (d) and (f)

• (a) an order requiring a person responsible for the contravention to cease, and desist from, the conduct concerned, or

• (b) in the case of an insurance, reinsurance or ancillary insurance intermediary, withdrawal of its registration under Part 3.

Relevant annual turnover

Exercise of supervisory powers and imposition of sanctions

• (a) the gravity and duration of the contravention;

• (b) the degree of responsibility of the person responsible for the contravention;

• (c) the financial strength of the person responsible for the contravention, as indicated, for example, by total turnover where the person is a body corporate or unincorporated body, or by annual income where the person is a natural person;

• (d) the importance of the profits gained or losses avoided by the person responsible for the contravention, insofar as they can be determined;

• (e) the losses for customers and third parties caused by the contravention, insofar as they can be determined;

• (f) the level of cooperation of the person responsible for the contravention with the Bank;

• (g) measures taken by the person responsible for the contravention to prevent repetition of the contravention;

• (h) any previous contraventions or prescribed contraventions within the meaning of the Act of 1942 by the person responsible for the contravention.

Right of appeal

Delegations, etc.

• (a) directly,

• (b) in collaboration with other authorities, or

• (c) by application to the High Court.

• (2) Notwithstanding paragraph (1), the final responsibility for supervising compliance with the Directive of 2016 and these Regulations shall be with the Bank.

• (3) In the exercise of its powers to impose administrative sanctions and other measures, the Bank shall cooperate closely with the competent authorities in other Member States, as appropriate, to ensure that those sanctions and measures produce the desired results and coordinate their action when dealing with cross-border cases, while ensuring that the conditions are met for legitimate data processing in accordance with Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016⁸ and Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000⁹ .

Part 9 Publication

Publication of information

• (2) The publication mentioned in paragraph (1) shall include at least information on the type and nature of the contravention and the identity of the person responsible for it.

• (3) Where the Bank imposes a sanction under Part IIIC of the Act of 1942 in respect of a contravention of these Regulations, and it considers that the publication of the identity of the legal persons, or identity or personal data of natural persons to be disproportionate following a case-by-case assessment conducted on the proportionality of the publication of such data or where publication would jeopardise the stability of financial markets or an ongoing investigation, it may decide to defer publication, not to publish, or to publish the sanctions on an anonymous basis.

• (4) Where the decision to impose a sanction or measure for a contravention of these Regulations is the subject of an appeal, the Bank shall also publish, immediately, on its website such information and any subsequent information on the outcome of such appeal.

• (5) Any decision annulling a previous decision to impose a sanction or other measure for a contravention of these Regulations which has been published shall also be published.

• (6) The Bank shall inform EIOPA of all sanctions imposed but not published in accordance with paragraph (3) including any appeal in relation to them and the outcome of any such appeal.

• (7) The Bank shall provide EIOPA annually with aggregated information regarding all administrative sanctions and other measures for a contravention of these Regulations imposed in accordance with Regulation 44.

• (8) Where the Bank has disclosed an administrative sanction or other measure for a contravention of these Regulations to the public, it shall at the same time report that fact to EIOPA.

Part 10 Arrangements for Reporting of Breaches

Reporting of breaches

• (2) The mechanisms referred to in paragraph (1) shall include at least—

• (a) specific procedures for the receipt of reports and their follow-up,

• (b) in relation to the protection of employees of insurance or reinsurance distributors or persons in comparable positions, who report potential or actual breaches committed within the institution against retaliation, discrimination or other types of unfair treatment, these Regulations are made subject to, and without prejudice to, the Protected Disclosures Act 2014 (No. 14 of 2014) and Part 5 of the Act of 2013, and the protections for employees contained in those Acts, and

• (c) protection of the identity and personal data of both the person who reports the potential or actual breach and the natural person who is allegedly responsible for a breach, at all stages of the procedures unless such disclosure is required by law or in the context of further investigation or subsequent administrative or judicial proceedings in accordance with the Data Protection Act 2018 (No. 7 of 2018).

Part 11 Consequential Amendments

Amendment of Central Bank Act 1942

• (a) in paragraph (at) (inserted by Regulation 2 of the European Union (Detailed Technical Measures Designation) Regulations 2018 ( S.I. No. 130 of 2018 )) of section 2(2A), by substituting “2018 and the European Union (Insurance Distribution) Regulations 2018)” for “2018)”,

• (b) in section 33AK(10) (amended by the Data Protection Act 2018 (No. 7 of 2018)) in the definition of “supervisory EU legal acts” by inserting after paragraph (ac) the following paragraph:

• “(ad) Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016¹⁰ on insurance distribution.”,

• (c) in section 33BC (amended by Regulation 131 of the European Union (Markets in Financial Instruments) Regulations 2017 ( S.I. No. 375 of 2017 )), by inserting after subsection (13) the following subsection:

• “(14) This section shall not apply where Regulation 52 of the European Union (Insurance Distribution) Regulations 2018 applies.”,

• (d) in Part 2 of Schedule 2 (amended by Regulation 145 of the European Union (Payment Services) Regulations 2018 ( S.I. No. 6 of 2018 )) by inserting after item 71 the following:

“

72	S.I. No. __ of 2018	European Union (Insurance Distribution) Regulations 2018	The whole instrument

”, and

• (e) in Schedule 10 (inserted by Regulation 2 of the European Union (Detailed Technical Measures Designation) Regulations 2018 ( S.I. No. 130 of 2018 ))—

• (i) in paragraph (81) by substituting “2016;” for “2016.”, and

• (ii) by inserting after paragraph (81) the following paragraphs:

• “(82) Commission Implementing Regulation (EU) 2017/1469 of 11 August 2017¹¹ ;

• (83) Commission Implementing Regulation (EU) 2017/2358 of 21 September 2017¹² ;

• (84) Commission Implementing Regulation (EU) 2017/2359 of 21 September 2017¹³ .”.

Amendment of Investment Intermediaries Act 1995

• (a) in section 2(1)—

• (i) by deleting the definitions of “insurance agent”, “insurance broker”, “insurance intermediary”, “insurance undertaking”, “life assurance”, “life assurance intermediary”, “non-life insurance”, “non-life insurance intermediary” and “tied insurance agent”,

• (ii) in the definition of “investment business firm”, by deleting “or an insurance undertaking” and “, insurance undertaking”,

• (iii) in the definition of “investment instruments”, by deleting paragraph (m),

• (iv) in the definition of “investor”, by deleting “or of an insurance intermediary”, and

• (v) in the definition of “product producer”, by substituting “ or investment company” for “, investment company or insurance undertaking”,

• (b) in section 2(6)—

• (i) in paragraph (m), by substituting “client, or” for “client.”, and

• (ii) by inserting after paragraph (m) the following paragraph:

• “(n) persons carrying on the distribution of insurance or reinsurance products referred to in Council Directive 2016/97/EC¹⁴ , including the following products provided by an insurance undertaking:

  • (i) tracker bonds;

  • (ii) Personal Retirement Savings Accounts within the meaning of Part X of the Pensions Act 1990 (No. 25 of 1990).”,

• (c) by deleting section 13A,

• (d) in section 25(b)—

• (i) in subparagraph (vi), by substituting “tracker bonds, or” for “tracker bonds,”, and

• (ii) by deleting subparagraph (vii),

• (e) by deleting sections 25A, 25B, 25C, 25D, 25E, 25F and 25G,

• (f) in section 26—

• (i) in subsection (1)(a)(i), by deleting “, insurance policies,”,

• (ii) in subsection (1B)(c), by substituting “of clients.” for “of clients, or”,

• (iii) by deleting subsections (1A)(h), (1B)(d), (1B)(e), (1C), (2A) and (3), and

• (iv) in subsection (4), by substituting “Subsection 2” for “Subsections 2 and (2A)”,

• (g) in section 27(1)(c), by deleting “and, insofar as he is acting as an insurance intermediary, with the provisions of the Insurance Acts,”,

• (h) in section 28—

• (i) by deleting subsection (1)(a)(v),

• (ii) in subsection (1)(c), by deleting “, or any insurance placed,”,

• (iii) in subsection (2)(b), by deleting “and, where the product producer is an insurance undertaking, is also in compliance with the Insurance Acts”,

• (iv) in subsection (3), by deleting “and with the Insurance Acts”, and

• (v) in subsection (7)(d), by deleting “and, if the firm is an insurance intermediary, also complies with the Insurance Acts”,

• (i) in section 30—

• (i) in subsection (2)(e), by substituting “made.” for “made;”, and

• (ii) by deleting subsection (2)(f),

• (j) by deleting section 31A, and

• (k) in section 37, by deleting subsection (2A).

Part 12 Offences

Offence — false, etc., information

Offence — person carrying on insurance or reinsurance distribution other than where registered

• (a) is registered as an insurance intermediary, reinsurance intermediary or ancillary insurance intermediary in the State or in another Member State, or

• (b) is exempt from registration under these Regulations.

• (2) A person who contravenes paragraph (1) commits an offence.

Penalties

• (a) on summary conviction, to a class A fine or imprisonment for a term not exceeding 12 months, or both, or

• (b) on conviction on indictment, to a fine not exceeding €500,000 or imprisonment for a term not exceeding 3 years, or both.

Summary prosecutions by Bank

Part 13 Revocations and Transitionals

Revocations

• (a) the European Communities (Insurance Mediation) Regulations 2005 ( S.I. No. 13 of 2005 );

• (b) the European Communities (Insurance Mediation) (Amendment) Regulations 2008 ( S.I. No. 161 of 2008 ).

• (2) References to, or to any provision of, the Regulations, referred to in paragraph (1), in any enactment have effect as references to the corresponding provision of, or to, these Regulations.

• (3) References to terms as defined in the Regulations, referred to in paragraph (1), in any enactment have effect as references to the equivalent terms defined in these Regulations.

Transitional

• (a) shall not affect any direction given by the Bank, any investigation undertaken, or disciplinary or enforcement action undertaken by the Bank or any other person, in respect of any matter in existence at, or before, the time of the revocation, and

• (b) shall not preclude the taking of any legal proceedings, or the undertaking of any investigation, or disciplinary or enforcement action by the Bank or any other person, in respect of any contravention of an enactment (including anything revoked by these Regulations) or any misconduct which may have been committed before the time of the revocation.

SCHEDULE

Regulation 20(3)

Minimum Professional Knowledge and Competence Requirements

• (a) minimum necessary knowledge of terms and conditions of policies offered, including ancillary risks if covered by such policies;

• (b) minimum necessary knowledge of applicable laws governing the distribution of insurance products, such as consumer protection law, relevant tax law and relevant social and labour law;

• (c) minimum necessary knowledge of claims handling;

• (d) minimum necessary knowledge of complaints handling;

• (e) minimum necessary knowledge of assessing customer needs;

• (f) minimum necessary knowledge of the insurance market;

• (g) minimum necessary knowledge of business ethics standards;

• (h) minimum necessary financial competency.

• (a) minimum necessary knowledge of insurance-based investment products, including terms and conditions and net premiums and, where applicable, guaranteed and non-guaranteed benefits;

• (b) minimum necessary knowledge of advantages and disadvantages of different investment options for policyholders;

• (c) minimum necessary knowledge of financial risks borne by policyholders;

• (d) minimum necessary knowledge of policies covering life risks and other savings products;

• (e) minimum necessary knowledge of organisation and benefits guaranteed by the pension system;

• (f) minimum necessary knowledge of applicable laws governing the distribution of insurance products, such as consumer protection law and relevant tax law;

• (g) minimum necessary knowledge of the insurance market and of the saving products market;

• (h) minimum necessary knowledge of complaints handling;

• (i) minimum necessary knowledge of assessing customer needs;

• (j) conflicts of interest management;

• (k) minimum necessary knowledge of business ethics standards;

• (l) minimum necessary financial competency.

• (a) minimum necessary knowledge of policies including terms, conditions, the guaranteed benefits and, where applicable, ancillary risks;

• (b) minimum necessary knowledge of organisation and benefits guaranteed by the pension system of the relevant Member State;

• (c) knowledge of applicable insurance contract law, consumer protection law, data protection law, anti-money laundering law and, where applicable, relevant tax law and relevant social and labour law;

• (d) minimum necessary knowledge of the insurance and other relevant financial services markets;

• (e) minimum necessary knowledge of complaints handling;

• (f) minimum necessary knowledge of assessing consumer needs;

• (g) conflicts of interest management;

• (h) minimum necessary knowledge of business ethics standards;

• (i) minimum necessary financial competency.

GIVEN under my Official Seal,

27 June 2018.

PASCHAL DONOHOE,

Minister for Finance.

EXPLANATORY NOTE.

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

The Insurance Distribution Directive “IDD” (Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution) is a recast of the Insurance Mediation Directive “IMD” (Directive 2002/92/EC) and is designed to ensure a level playing field across all participants selling insurance products. Amongst other things the IDD introduces enhanced information and conduct of business requirements.

These Regulations transpose the IDD into national law and will enter into force on 1 October 2018. As the IDD replaces the IMD, accordingly these Regulations revoke the European Communities (Insurance Mediation) Regulations 2015 ( S.I. No. 13 of 2005 ), which transposed the IMD.

Footnotes