SEPTEMBER 2017 – THIS MONTH'S NEWS

  • MINIMUM COMPETENCY CODE 2017
  • CENTRAL BANK PUBLISHES
  • INSURANCE QUATERLY NEWSLETTER - SEPTEMBER 2017
  • LIFE ASSURANCE (PROVISION OF INFORMATION) REGULATIONS (AMENDMENT) REGULATIONS 2017 AND DEAR CEO LETTER IN RESPECT OF THE KEY INFORMATION DOCUMENT
  • CENTRAL BANK DELIVERS PRESENTATION ON INTERNAL MODELS UNDER SOLVENCY II
  • EU COMMISSION PUBLISHES IMPLEMENTING MEASURES FOR IDD WHILE EIOPA GATHERS DATA TO DEVELOP AN IDD Q&A
  • EUROPEAN COMMISSION ADOPTS LEGISLATIVE PROPOSALS FOR REFORMS TO EUROPEAN SYSTEM OF FINANCIAL SUPERVISION
  • EU AND US SIGN BILATERAL AGREEMENT ON INSURANCE AND REINSURANCE
  • EUROPEAN COMMISSION PUBLISHES RESPONSES TO PUBLIC CONSULTATION ON FINTECH
  • INSURANCE EUROPE RESPONDS TO THE FIRST SET OF EIOPA ADVICE ON SOLVENCY II REVIEW
  • EIOPA PUBLISHES A NEW SET OF SOLVENCY II STATISTICS ON THE EUROPEAN INSURANCE SECTOR
  • EIOPA'S HEAD OF POLICY DEPARTMENT DELIVERS SPEECH
  • ON CONSUMER CONFIDENCE IN THE EUROPEAN INSURANCE AND PENSIONS MARKET
  • INSURANCE EUROPE PROVIDES RESPONSE TO IAIS CONSULTATIONS ON ICP 1, 2, 18 AND 19

IN DOMESTIC NEWS...

MINIMUM COMPETENCY CODE 2017

On 1 September, the Minimum Competency Regulations 2017 and the revised Minimum Competency Code 2017 (MCC), were published and will take effect on 3 January 2018. The changes to the MCC are brought about due to the competency requirements contained in the Mortgage Credit Regulations, MIFID II, the Insurance Distribution Directive (IDD) and implement the ESMA guidelines for the assessment of knowledge and competence.

The MCC specifies certain minimum competency standards with which persons falling within its scope must comply when performing certain controlled functions i.e. providing advice or information to consumers on retail financial products, arranging or offering to arrange retail financial products for consumers (including any amendments to insurance cover) or the exercise of a specified function. From an insurance perspective, the key changes to the MCC are as follows:

This document contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.

PRODUCT DESIGN

At least one key member of staff involved in product design of a retail financial product must meet a prescribed standard of competency for that product. In terms of the competencies that that person is expected to exhibit, EIOPA have published guidelines on product oversight and governance arrangements, which include requirements in relation to the competence of manufacturers of products.

DEFINITION OF ADVICE

The definition of "advice" has been amended to bring it in line with MIFID II and the IDD. Advice in this context means the provision of a personal recommendation to a person whether at the person's request or at the request or at the initiative of the firm, in the course of performing a relevant function.

NEW DEFINITION OF INFORMATION

Information means the provision of information to a person, whether at the person's request or at the initiative of the firm, that may assist the person in the choice of retail financial product. However, this does not include the following:

  • "staff pointing out where persons can find information";
  • "the provision of a brochure or booklet without giving additional information"; and
  • "Information given in a newspaper, journal, magazine or other publication", which were previously encompassed under the definition of advice.

To view the full article please click here.

This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.