BIPAR - European Federation of Insurance Intermediaries
BIPAR
In accordance with our bylaws, the objectives of BIPAR are : 1) to exchange information between its members; 2) to examine jointly subjects of general interest; 3) to brief national or international organisations and to represent the industry on such organisations; 4) to intervene with public authorities to defend the interests of the industry; 5) to inform the public of the role of producers of insurance and reinsurance.
ID: 58041461167-22
Lobbying Activity
Response to Open finance framework
1 Nov 2023
BIPAR is the European Federation of Insurance Intermediaries. It groups 47 national associations in 30 countries. Through its national associations, BIPAR represents the interests of insurance agents and brokers and financial intermediaries in Europe. Besides some large multinationals, the insurance intermediation sector is composed of hundreds of thousands of SMEs and micro-type operators. It accounts for 0.7% of European GDP, and over one million people are active in the sector. Insurance and financial intermediaries facilitate the insurance and financial process for several hundreds of millions of customers. The variety of business models, the high level of competition and the geographical spread in the sector ensure that everyone in Europe has easy access to tailor-made insurance and financial services. On 28 June 2023, the European Commission adopted the Financial data access and payments legislative package. This position paper focuses on the proposal for a Regulation on a framework for Financial Data Access (the FIDA proposal). The objective of the FIDA proposal, which is in general shared by BIPAR and its members, is to help developing more innovative financial products and service for customers while allowing customers to have effective control over their financial data. However, BIPAR and its members believe that the scope of the FIDA proposal is too broad and is based on an impact assessment that does not demonstrate the need for such an industry-wide framework. BIPAR believes that a more staggered approach focusing first on realistic and more practical use cases would have been more effective. BIPAR also believes that the FIDA proposal does not ensure a true level playing field between the different players involved in data sharing, or a fair and equal access to data: It is particularly worrying for example that according to the FIDA proposal, EU financial institutions would have to make their financial data available to third countries tech firms, but would not have access to the financial data of these same firms. The fact that FISPs will be allowed (upon customer/consumer request) to access data held by data holders but wont have to share their own data with any other data user under the FIDA framework is also an important concern for BIPAR. This lack of reciprocity does not allow for a fair framework. The fact that the FIDA proposal does not define financial information services (FIS) is another key issue. It could lead to situations where in practice FISPs end up carrying out for example insurance distribution activities without being regulated under the IDD. Such a lack of legal clarity could trigger competition distortion to the detriment of currently highly regulated financial entities such as insurance and financial intermediaries. For BIPAR, all these issues require a robust cost/benefits analysis which should also consider what clients really use among their existing solutions or really ask from their insurance providers. It is worth noting here that only 55% of the respondents to the Commission consultation, launched before the publication of the FIDA proposal, thought that the European Commission should "consider" an open finance regime. 62% did not answer this question or answered "I don't know". The mandate for the development of an open finance framework is not, in our view, clear and meaningful. BIPAR is notably concerned with the exclusion of insurance intermediaries which are SMEs or microenterprises from the scope of this proposal. Although that exclusion is based on proportionality concerns, BIPAR worries that these smaller actors, if excluded from the financial data sharing framework, could face growing difficulties in competing with larger entities in scope of the FIDA proposal.
Read full response10 Dec 2020
BIPAR thanks the European Commission for the opportunity to comment on its draft implementing decision on standard contractual clauses for the transfer of personal data to third countries pursuant to Regulation (EU) 2016/679 and its annex.
Please find attached BIPAR comments.
We remain at the Commission ‘s disposal for any questions on the attached document
Kind regards,
Isabelle Audigier
Legal Director
Av. Albert-Elisabeth, 40 - 1200 Bruxelles - Tél: 0032-2-735.60.48
Fax: 0032-2-732.14.18 - bipar@bipar.eu - www.bipar.eu
The European Federation of Insurance Intermediaries
La Fédération européenne des intermédiaires d'assurance
Read full responseResponse to Review of the VAT rules for financial and insurance services
19 Nov 2020
BIPAR welcomes Europe’s objectives set out in the Commission Roadmap to clarify the VAT rules for the financial and insurance services where it is necessary.
BIPAR is of the opinion that, when considering changes in the VAT treatment of insurance services, it is important to take into account the insurance premium tax (IPT) which varies from one Member-State to another. The challenges that may arise in the case where VAT and IPT are cumulatively applicable should be thoroughly assessed. Administrative burden should also be considered.
BIPAR takes note that the evaluation will be based on the review of the most relevant legislative developments in the financial and insurance sectors since the financial crisis of 2007-2008.
Mutatis mutandis, the objective to provide a level-playing field envisaged in these (non-tax related) legislative developments should also be kept into consideration when reviewing the VAT rules in this sector. In this light, the operations of the overall financial and insurance system value chain should be considered.
Finally, BIPAR notes that a study, undertaken by an external contractor for the review of the VAT rules for financial and insurance services, is underway “to assist with the collection of the most comprehensive data possible, including available statistics and survey results”. BIPAR looks forward to the publication of this study and hopes it will be of assistance in analysing the potential impact the different scenarios considered by the Commission may have on our sector.
BIPAR is looking forward to being actively involved in the Commission’s further work in relation to the issues outlined in the Roadmap.
Read full response11 Sept 2020
Please find attached BIPAR feedback re. Capital markets – research on companies seeking alternative financing (updated rules in light of COVID-19)
Read full response6 Jul 2020
BIPAR welcomes the opportunity provided by the European Commission to comment on its proposed Delegated Regulation amending the Delegated Regulation (EU) 2017/565 as regards the integration of sustainability factors, risks and preferences into certain organisational requirements and operating conditions for investment firms, following the European Commission’s Action Plan for Sustainable Growth launched in March 2018.
BIPAR, as the representative of insurance and financial intermediaries in the EU, supports Europe’s ambition to encourage sustainable growth and orient capital flows towards sustainable investments. BIPAR recognizes the need for a concise framework on transparency of sustainability risks and sustainability factors towards consumers and the public in general. BIPAR agrees that integrating sustainability factors and risks into the investment advice and into the operational requirements for investment firms are necessary to channel investments into sustainable activities and strengthen financial stability.
As part of their obligations to act in accordance with the best interests of their clients, many financial intermediaries are already promoting sustainability principles in the services, advice and products they offer their clients, while ensuring that they are the right ones for them.
In this context, it is important to ensure that the different legislative proposals do not trigger a duplication of requirements for investment firms providing investment advice and portfolio management, but they establish a consistent framework.
BIPAR endorses the high-level principle-based approach followed by the Commission in accordance with the ESMA Technical Advice in relation to the integration of sustainability risks into the MiFID II provisions, similar to that already followed for all other relevant risks (e.g. credit risk, market risk, liquidity risk).
Please see BIPAR's detailed comments in the position paper attached.
Read full response6 Jul 2020
BIPAR welcomes the opportunity provided by the European Commission to comment on its proposed Delegated Regulation amending the Delegated Regulation (EU) 2017/565 as regards the integration of sustainability factors, risks and preferences into certain organisational requirements and operating conditions for investment firms, following the European Commission’s Action Plan for Sustainable Growth launched in March 2018.
BIPAR, as the representative of insurance and financial intermediaries in the EU, supports Europe’s ambition to encourage sustainable growth and orient capital flows towards sustainable investments. BIPAR recognizes the need for a concise framework on transparency of sustainability risks and sustainability factors towards consumers and the public in general. BIPAR agrees that integrating sustainability factors and risks into the investment advice and into the operational requirements for investment firms are necessary to channel investments into sustainable activities and strengthen financial stability.
As part of their obligations to act in accordance with the best interests of their clients, many financial intermediaries are already promoting sustainability principles in the services, advice and products they offer their clients, while ensuring that they are the right ones for them.
In this context, it is important to ensure that the different legislative proposals do not trigger a duplication of requirements for investment firms providing investment advice and portfolio management, but they establish a consistent framework.
BIPAR endorses the high-level principle-based approach followed by the Commission in accordance with the ESMA Technical Advice in relation to the integration of sustainability risks into the MiFID II provisions, similar to that already followed for all other relevant risks (e.g. credit risk, market risk, liquidity risk).
Please see BIPAR's detailes comments in the position paper attached.
Read full response6 Jul 2020
BIPAR welcomes the opportunity provided by the European Commission to comment on its proposed Delegated Regulation amending the Delegated Regulation (EU) 2017/2358 and the Delegated Regulation (EU) 2017/2359 as regards the integration of sustainability factors and preferences into the product oversight and governance requirements for insurance undertakings and insurance distributors and into the rules on conduct of business and investment advice for insurance-based investment products, following the European Commission’s Action Plan for Sustainable Growth launched in March 2018.
BIPAR, as the representative of insurance and financial intermediaries in the EU, supports Europe’s ambition to encourage sustainable growth and orient capital flows towards sustainable investments. BIPAR recognizes the need for a concise framework on transparency of sustainability risks and sustainability factors towards consumers and the public in general. BIPAR agrees that integrating sustainability factors into the investment advice and into the product approval process are necessary to channel investments into sustainable activities and strengthen financial stability.
As part of their obligations to act in accordance with the best interests of their clients (Article 17, IDD), many insurance and financial intermediaries are already promoting sustainability principles in the services, advice and products they offer their clients, while ensuring that they are the right ones for them.
BIPAR endorses the high-level principle-based approach followed by the Commission in accordance with the EIOPA Technical Advice in relation to the integration of sustainability risks into the IDD provisions, particularly the conflicts of interest requirements and the product approval process.
Please see BIPAR's detailed comments in the position paper attached.
Read full responseResponse to Evaluation of the Distance Marketing of Financial Services Directive
4 Jan 2019
BIPAR supports the European Commission’s initiative to carry out an evaluation of the Distance Marketing of Consumer Financial Services Directive (DMD) in 2019. BIPAR welcomes in particular the Commission’s intention to focus its evaluation on the functioning of the DMD from “a cost/benefit and burden reduction perspective”.
Since the adoption of the DMD in 2002, new sector specific EU rules applying to the distribution of financial/insurance services/products like the Insurance Distribution Directive (IDD), the Regulation on the Packaged Retail and Insurance-based Investment Products and new horizontal EU rules on consumer protection like the General Data Protection Regulation (GDPR) have been introduced. These new EU rules have introduced new pre-contractual information or disclosure requirements.
BIPAR therefore agrees with the Commission ‘s roadmap to evaluate the interplay of the DMD with these new EU rules, and to avoid any possible duplication in particular for the sake of better consumer protection and legal clarity. It is important that all consumers receive, be it in a digital or non-digital environment, relevant, clear and meaningful information, so that they can take an informed decision about their insurance products.
Since 2002, in the light of digitalisation, consumer’ behaviour has changed and new business models of financial service distributors have been created. The DMD requirements may not be fit for the digital world or coherent with it.
BIPAR therefore welcomes the European Commission’s approach in its roadmap to assess whether the DMD tools correspond to current consumers’ needs and market developments.
BIPAR, together with its members, will provide input to the public consultation and to the targeted consultation.
Read full responseResponse to Evaluation of the Consumer Credit Directive
27 Jul 2018
BIPAR is the European Federation of Insurance Intermediaries. It groups 51 national associations in 30 countries. Through its national associations, BIPAR represents the interests of insurance agents and brokers and financial intermediaries with the European authorities. More information on BIPAR can be found on www.bipar.eu
BIPAR welcomes the opportunity to comment on the European Commission’s Roadmap regarding the evaluation of the Consumer Credit Directive.
BIPAR acknowledges that there is a need for adequate protection for consumers when taking out credit and recalls that the presence of credit intermediaries always represents an additional guarantee of consumer protection through professional services and advice.
With regard to the Roadmap and the evaluation of the Consumer Credit Directive, BIPAR would like to share the following points for consideration: see pdf document attached
Read full responseResponse to REFIT review of the Motor Insurance Directive
24 Jul 2018
BIPAR welcomes this opportunity to comment on the Commission proposal amending the current Motor Insurance Directive (MID).
BIPAR’s major concern with the Commission proposal is the proposed extension of the scope of the Directive which comes as a result of the Commission’s attempt to clarify the concept “use of a vehicle”. The definition of this concept draws on the recent CJEU rulings that extend the requirements for compulsory motor insurance to any vehicle or mobile device, however and wherever it is used. This could create many unintended consequences and unnecessary administrative burdens.
While BIPAR recognises that victims of accidents that take place on private land also deserve appropriate redress, we believe that MID is not the appropriate legal instrument to achieve this. The defining factor for the MID’s scope should be accident caused by motor vehicles in the context of traffic.
Please see our full comments in the attached document.
Read full responseResponse to Institutional investors' and asset managers' duties regarding sustainability
20 Jun 2018
Following the European Commission’s Action Plan for Sustainable Growth launched in March 2018 and the HLEG recommendations in January 2018, BIPAR welcomes the opportunity provided by the European Commission to comment on its proposed Delegated Regulation amending Regulation (EU) 2017/565 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organizational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive.
Integrating ESG factors into financial advice and creating a new overall framework for sustainable finance are necessary to channel investments into sustainable activities. BIPAR therefore welcomes the Commission proposed amendments to the Regulation 2017/565. BIPAR believes however that there are other ways of encouraging sustainable products - such as tax incentives that could encourage investment into sustainable economic activities. More regulation can’t always be the solution.
As part of their obligations to act in accordance with the best interests of their clients, many insurance and financial intermediaries are already promoting sustainability principles in the services, advice and products they offer their clients, while ensuring that they are the right ones for them.
In short, BIPAR’s key comments are the following:
1. The intention of the proposed text is to introduce the obligation for investment firms to explicitly ask their clients about their ESG preferences in particular. However, the proposed text should be drafted in a clearer way to ensure that does not cover any other kind of preferences that the client may have.
2. Sustainability-related questions should be seen as part of the overall suitability assessment. No prevalence should be accorded to ESG considerations.
3. The wording “the most” suitable products should be deleted, as it inconsistent with the current MiFID II Delegated Regulation and with the ESMA guidelines.
4. Consistency between the MiFID II amendments and the IDD amendments should be pursued.
5. Considering the need for regulatory stability, sufficient time should be allowed to the market participants to adopt to and apply the new rules.
Read full responseResponse to Institutional investors' and asset managers' duties regarding sustainability
20 Jun 2018
BIPAR welcomes the opportunity provided by the European Commission to comment on its proposed Delegated Regulation amending Delegated Regulation (EU) 2017/2359 with regard to environmental, social and governance (ESG) preferences in the distribution of insurance-based investment products, following the European Commission’s Action Plan for Sustainable Growth launched in March 2018 and the HLEG recommendations in January 2018.
Integrating ESG factors into financial advice and creating a new framework for sustainable finance are necessary to channel investments into sustainable activities.
We welcome the proposed amendments to the IDD Delegated Regulation on IBIPs as a step towards developing the overall sustainability framework. BIPAR believes however that there are other ways of encouraging sustainable products - such as tax incentives that could encourage investment into sustainable economic activities. More regulation can’t always be the solution.
As part of their obligations to act in accordance with the best interests of their clients, many insurance and financial intermediaries are already promoting sustainability principles in the services, advice and products they offer their clients, while ensuring that they are the right ones for them.
In short, BIPAR’s key comments are the following:
1. The wording of the proposed text should be clearer to reflect that the intention is to introduce an obligation to ask the customers about their ESG preferences and, if any raised, to take them into account in the advisory process. The words “if any” should be introduced in the articles amended.
2. The wording “the most” suitable products should be deleted, as it inconsistent with the current IDD Delegated Regulation and with the ESMA guidelines.
3. Consistency between the IDD amendments and the MiFID II amendments should be pursued.
4. Considering the need for regulatory stability, sufficient time should be allowed to the market participants to adopt to and apply the new rules.
Read full responseResponse to Review of the appropriate prudential treatment for investment firms
8 Mar 2018
Please find attached BIPAR feedback to the Review of the appropriate prudential treatment for investment firms.
Read full responseResponse to Amendment to Directive (EU) 2016/97 on insurance distribution.
16 Feb 2018
BIPAR welcomes the European Commission’s proposal to delay the application date of the Insurance Distribution Directive (IDD) by 7 months to 1 October 2018. It also welcomes the Commission’s decision to align the application dates of IDD Delegated Regulations and to therefore postpone the application of the two texts to 1 October.
Delay was necessary
This was necessary to allow the insurance distribution sector, which consists of many SMEs, to better prepare for the correct and effective application of the IDD in the interest of consumers.
The IDD was to be implemented at national level by 23 February 2018. However, because of the legal uncertainty triggered by the delay in the finalisation of the two IDD delegated Regulations (Level 2 texts), the industry, and in particular SME insurance intermediaries, could not begin implementing the significant structural changes that the IDD necessitates before September 2017.
The two IDD level 2 texts are of significant importance for businesses: the two delegated Regulations further specify some key IDD provisions with regard to Product Oversight and Governance (POG), Conflicts of interest, Inducements and Assessment of Suitability and Appropriateness and reporting. But SMEs - most of insurance intermediaries are SMEs – could not, financially and time-wise, afford planning the necessary technical, organizational and IT changes investments on the basis of draft level 2 texts that could have been amended or further specified in the final rules. They had to wait until the final texts were adopted (September 2017) to begin the application of the texts and would have been unable to meet the IDD original implementation and application deadline
Read full responseResponse to Proposal for a Regulation - Financial Stability, Financial Services and Capital Markets Union
26 Sept 2017
Please find attached BIPAR initial input to the Commission consultation on the proposal for a Regulation on a Pan-European Personal Pension Product (PEPP).
Read full responseResponse to DA on conduct of business rules for the distribution of insurance-based investment products
17 Aug 2017
Please find attached BIPAR comments on the IDD DA on conduct of business rules for the distribution of insurance-based investment products (IBIPs)
Read full responseResponse to DA on product oversight and governance requirements for insurance undertakings and insurance distributors
17 Aug 2017
Please find attached BIPAR comments on the IDD DA on product oversight and governance requirements for insurance undertakings and insurance distributors (POG)
Read full responseResponse to Review of the appropriate prudential treatment for investment firms
19 Apr 2017
BIPAR welcomes the opportunity provided by the European Commission to comment on its Inception Impact Assessment on the review of the appropriate prudential treatment for investment firms.
BIPAR represents 53 national associations of insurance and financial intermediaries. Many of the financial intermediaries who are members of our national associations, are micro- to SME-type companies, providing advisory services to their clients.
BIPAR has been following this dossier over the past months and years, responded to the EBA consultation and participated, together with some of its members, in the European Commission’s workshop on 27 January.
Under MiFID, many of the financial intermediaries that BIPAR represents, fall under “opt-out” national regimes (according to Article 3 of MiFID I and II). Some of these small firms however, are investment firms that do not fall under an Article 3 exemption.
BIPAR believes it is very important that any reviewed prudential rules take a proportionate approach when it comes to micro-size/small firms that only or mainly provide advisory, “know-how” services.
We note that the Inception Impact Assessment states on p. 2 that: “A revised prudential regime should allow for better differentiation between the small number of large firms which represent systemic risks on a par with credit institutions, and the vast majority of firms whose size and activities are unlikely to generate comparable risks. Among firms of comparable size, those engaged in more risky activities should have higher requirements than those engaged in less risky ones.”
We support these objectives and would like to stress that, indeed, the risk aspect to clients is key.
In this respect, the failure of investment firms may indeed impact on clients, but this very much depends on the type of services that are provided. The failure of investment firms that provide “know-how”-type services (advice, transmission of orders, …) has little to no impact on clients. The deposits are with a different firm. In case of failure of a “know-how” providing firm, the client can very easily choose a new adviser. We therefore ask that any future rules measure the actual risk for clients in relation with the capital requirements. This would mean that if there is no - or a very limited - risk for the client, the capital requirements would be minimal.
The calculation of the capital requirements should be clearly differentiated depending on the risk involved. An investment firm which does not provide credits to clients should therefore in no case have to calculate „credit-risk “. The high costs related to calculating a risk provide a burden and a relevant cost factor to investment firms.
We would like to refer to our response to the recent EBA consultation in this respect (see attached).
Linked to this, regarding initial capital requirements, we would like to point out that it is not logical that firms that only provide “know-how” services (financial advice and so on) would need a minimum capital requirement.
We believe that PI cover offers suitable protection. Please see our response to the EBA consultation for more detail.
With regard to the possible new classification of firms, in particular with regard to the conditions that would be attached to falling in the scope of very small "Class 3" firms, we also kindly refer to our response to the EBA consultation.
Finally, we note that the Commission does not intend to run its own general public consultation on the proposal, but will nevertheless “engage in targeted consultation with stakeholders in order to gather views on the proposal, including points not covered by the EBA” (see p. 4 of the Inception Impact Assessment). Together with our member associations, we indeed look forward to continuing to participate effectively in future consultation activities on this topic.
Read full response