EIOPA · 1643 - Provisions on switching and related costs and benefits analysis

Other

Regulation
(EU) No 2017/2359 - info requirements and conduct of business rules applicable
Topic
Other
Submitted
2018-07-10
Answered
2019-09-04

Question

Could the provisions on switching apply only when providing advice on switching between underlying investment assets within a product? Or are insurance intermediaries and untertakings expected to apply this rule when switching between products? Are insurance undertakings and intermediaries also expected to analyse the costs and benefits of the main product as well as the underlyings?

Answer

Article 9(7) of Delegated Regulation 2017/2359 only applies to switching between underlying investment assets such as funds, not concluding a new contract of insurance. However, when providing advice on switching products, the requirements of Article 30, IDD and Article 9 of Delegated Regulation 2017/2359 more widely, must be met, and this would include a cost-benefit analysis as part of the advice given.

This Q&A is published by European Insurance and Occupational Pensions Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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