Regulatory Alerts2022-05-24
Added · Updated
The Nature and Art of Financial Supervision – Conduct Supervision – The Demands and Needs Assessment
The Malta Financial Services Authority updates its guidance on the demands and needs assessment required under Article 20(1) of the Insurance Distribution Directive for all insurance distributors. The document mandates that assessments be conducted prior to product proposal using client-specific information, prohibiting reliance on generic statements or proposal forms as substitutes. It requires entities appointing Tied and Ancillary Insurance Intermediaries to monitor their compliance and provide guidance, while specifying that a statement explaining the product fit must be provided to clients before contract conclusion.