01 April 2008

CEIOPS survey on proposals for amending the IMD and the Luxembourg Protocol

CEIOPS Intermediaries Expert Group (IMEG) presented the conclusions reached for possible amendments to the Insurance Mediation Directive and/or the Luxembourg Protocol. CEIOPS decided to conduct this inquiry based on the conclusions reached during the drafting of its Report on the implementation of Key Issues of the IMD.

Three proposals were adopted by updating of the Luxembourg Protocol. They concern the addition of an informational reference to the Directive on mutual recognition, the adoption of the out-of-court handling of consumer complaints as developed in CEIOPS’ General Protocol, and the completion of Annex I with the list of the competent authorities for registrations under the IMD.

The majority of the IMEG-members agreed that no amendment to the IMD is necessary for the moment. The implementation of the IMD is still in its infancy.

Some Members did not yet have the necessary evidence to comment on different questions or suggestions.

It was further agreed that the two proposals made by the IMEG members with regard to the scope of the IMD and the geographical adjustment of PII requirements were worthwhile to analyse more deeply, for example in the framework of the review of the IMD by the EC.

CEIOPS IMEG considered herewith its mandate as achieved. The publication of the Luxembourg Protocol, the Report on the IMD and the proposal for defining freedom of services under the IMD are important milestones in the implementation process of the IMD. In addition, IMEG’s surveys on the national regulations with regard to brokers’ commissions or to the measures that can be adopted by Member States under Article 4.4 of the IMD in respect of the protection of customer added to the common understanding of the IMD.

Finally, IMEG members confirmed their willingness to contribute to a possible EC’s review of the IMD and to the publication of Best practises in the implementation of the IMD. They intend to continue the exchange of information with regard to market conduct in the context of CEIOPS new working group on consumer issues.

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© Graham Bishop