CEIOPS submits advice on the revision of the IMD Directive
CEIOPS has submitted its advice on the revision of the Insurance Mediation Directive (IMD) and recommended an 'on request' regime for commission disclosure.
The IMD review is lead by the European Commission and includes a potential overhaul of commission transparency.
In its advice, CEIOPS backed the 'on request' regime, currently being used in the UK broker market through industry guidance as a result of intense industry lobbying of the FSA.
It said: "The majority of members regard an “on request” regime as a minimum harmonisation regime, maintaining the possibility for member states to impose stricter requirements as the best possible solution to the improvement of the transparency of remuneration. Under the “on request” regime, the intermediary should be obliged to inform the customer if the intermediary receives any kind of remuneration."
In March, Insurance Times revealed that brokers are again facing the threat of being forced to disclose their commissions, with the EU Commission looking to revive the plan for mandatory disclosure.
Elsewhere, it backed Biba's calls for a level regulatory playing field relating to disclosure rules for brokers and insurers and agreed that the scope of the IMD should remain as broad as possible.
Biba's head of compliance and training, Steve White, said he was "reasonably happy" with CEIOPS's 39 recommendations in response to the questions raised by the Commission.
A wider consultation paper is set to be released before the end of the year.
CEIOPS said the advice was the result of in-depth discussions amongst CEIOPS members and represents its initial views on the revision of the IMD.
It is structured along the lines of the seven issues which the commission asked CEIOPS to consider.
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