Regulatory Alerts2021-04-21
Added · Updated
Commission Delegated Regulation (EU) 2021/1257 amending product oversight and conduct of business rules for insurance sustainability factors
The European Commission amends Delegated Regulations (EU) 2017/2358 and (EU) 2017/2359 to require insurance undertakings and distributors to integrate sustainability factors, risks, and preferences into product oversight and conduct of business rules. Manufacturers must identify target markets at a granular level including sustainability objectives, while distributors must assess customer sustainability preferences, avoid mis-selling, and keep records of recommendations that do not meet such preferences. These obligations apply to insurance-based investment products and enter into force on the twentieth day following publication, with application starting on 2 August 2022.