These are supplemented by indicative examples of what a competent authority could require a distributor to demonstrate in terms of knowledge and ability, thus allowing for flexibility to adopt a proportionate approach at national level. For example, the Report promotes:
-
Appropriate knowledge (e.g. about legal aspects, consumer protection requirements, tax regimes, markets and products) and ability (e.g. about risk perception, underwriting process, claims procedures) for distributors.
-
Demonstration of ethical and professional conduct at all times, for instance to consider the best interest of the consumer in circumstances connected to the contract.
-
Effective communication to the consumer regarding terms and conditions of the contract, complaints-handling, risks and rewards of a strategy or product, by using clear and comprehensible language.
-
Provision of suitable and/or personalised recommendations and adaptation of these to the evolving consumer situation and need.
EIOPA considers it good supervisory practice for a competent authority to ensure there is appropriate oversight of continuous professional development.
Full report
© EIOPA
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article