Other

Article 5(1) of Delegated Regulation 2017/2359 is a non-exhaustive list of measures to be included, where appropriate, in procedures designed to manage conflicts of interest and prevent them from damaging the interests of the customer which are required to be put in place in accordance with Article 27, IDD.  Article 5(1) of Delegated Regulation 2017/2359 also states that procedures and measures shall be appropriate to the size of the activities of the insurance intermediary or insurance undertaking and to the risk of damage to the interests of the consumer. This is also reflected in Article 27, IDD, which requires that arrangements shall be proportionate to the activities performed, the insurance products sold and the type of distributor. It is important that all insurance undertakings and insurance intermediaries would consider the measures listed and assess whether they are appropriate or not taking into account their nature and size in view of the principle of proportionality.  In the case of a small insurance intermediary (i.e. small companies or sole traders, it may not always be possible to have separate individuals carrying out different duties, or separate supervision of persons in order to prevent conflicts of interest.  (i.e. small companies or sole traders).  However, it is important that a small insurance intermediary would be able to identify where conflicts of interest can arise, and where separation is not possible, reasonable alternative measures would be implemented to prevent the conflicts of interest. If the conflict of interest cannot be managed, it is important that the small insurance intermediary would disclose the conflict of interest to an affected customer in accordance with Article 28(3) of IDD and Article 6 of Delegated Regulation 2017/2359.