Insurance Mediation (Directive)
The Commission extends the scope of the current directive by including direct selling of insurances. In the future, intermediaries have to disclose to clients the commission or any other remuneration they receive upon selling an insurance. Only those intermediaries abstaining from commissions can call themselves “independent”.
Extending the scope of the directive to direct insurance selling can limit distortions of competition and stop regulatory arbitrage. The duty to disclose the exact amount of commissions will not stop bad advice und cause new distortions of competition. Forbidding the use of commissions for “independent” intermediaries selling insurance investment products neither creates any practical mediation solutions nor does it produce intermediaries who are really independent.