EIOPA is consulting on retail investor protection in relation to the sale of insurance-based investment products (IBIPs). The proposals cover five different areas:
- Enhancing consumer engagement with disclosures, including digital disclosures – EIOPA says there needs to be a shift towards more consumer-focussed disclosures;
- Assessing the risks and opportunities presented by new digital tools and channels – there is scope for development of an EU market for digital platforms selling IBIPs but there are also risks around misuse of client data;
- Tackling damaging conflicts of interest in the sales process – EIOPA is seeking feedback on the positive and negative aspects of a number of different policy options;
- Promotion of an affordable and efficient sales process – there is scope for more automated services to develop further which will help make the provision of advice more accessible and affordable; and
- Assessing the impact of complexity in the retail investment product market – EIOPA is seeking feedback on three different options for measures which could lead to simpler and more cost-efficient IBIPs.
The consultation closes on 25 February 2022.