What changed between the draft committee report and the plenary report

Added:(23a) in Article 90, paragraph 5 is added:

Added:‘5. By ... [5 years after the entry into force of this Directive], the Commission shall prepare a report, after consulting ESMA and the national competent authorities, assessing whether providers of financial and non-financial market data should be included in the scope of this Directive. The Commission shall take into account market developments and the relevant evidence at its disposal. The report shall in particular assess:

Added:(a) the evolution of the number and the diversity of financial and non-financial market data providers;

Added:(b) the adequacy of the requirements for financial and non-financial market data providers established outside the Union to operate in the Union;

Added:(c) the functioning of the market of financial and non-financial market data providers in the Union, including potential conflicts of interests, and its supervision by ESMA.

Added:Where the Commission finds it appropriate, the report shall be accompanied by a legislative proposal to amend this Directive.’;

Added:(24) Annex II is amended as set out in Annex I to this Directive.

Added:(25) Annex V is added as set out in Annex II to this Directive.

Added:Amendments to Directive (EU) 2016/97

Added:Directive (EU) 2016/97 is amended as follows:

Added:(-1) In Article 1(6), the first and the second paragraph are replaced by the following:

Added:‘Without prejudice to intra-group relationships where an insurance intermediary or reinsurance intermediary established in a third country carries out insurance or reinsurance distribution activities on behalf of a registered insurance intermediary or reinsurance intermediary in the Union acting on its behalf or having close links with such third-country insurance intermediary or reinsurance intermediary, Member States shall require insurance intermediaries and reinsurance intermediaries registered in a third country to establish a branch in their territory and apply for registration in accordance with Article 3 in order to take up and pursue insurance or reinsurance distribution activities as defined in Article 2(1), points (1) and (2), in the relevant Member State. With respect to the operation of intra-group relationships, Member States shall ensure that any registered insurance intermediary or reinsurance intermediary acting on behalf of or having close links with an insurance intermediary or reinsurance intermediary in a third country, which is unable to demonstrate to the competent authority of the home Member State:

Added:(a) during the process of registration under Article 3 or on the basis of a regular review of the validity of the registration under Article 3(4), fifth subparagraph, that it has an appropriate level of corporate substance in that Member State, namely that it possesses appropriate knowledge and ability in order to complete its tasks and perform its duties adequately in accordance with Article 3(4), fourth subparagraph and Article 10(1), shall not be allowed to take up and pursue insurance distribution activities as defined in Article 2(1), point (1), in that Member State or if already registered in that Member State, shall be removed from the register in accordance with Article 3(4), sixth subparagraph; and

Added:(b) without prejudice to situations in which an appropriate level of corporate substance is demonstrated to the competent authority of the home Member State under subparagraph (i), the establishment of a branch of an insurance or reinsurance intermediary established in a third country with the primary purpose of providing an insurance or reinsurance distribution activity.’;

Added:(1) Article 2(1) is amended as follows:

Added:(a) in point (4), point (c) is replaced by the following:

Added:‘(c) the insurance products concerned do not cover life insurance or liability risks, except for cover of liability risks complementing a good or service which the intermediary provides as its principal professional activity;’

Added:(b) point (8) is replaced by the following:

Added:‘(8) ‘insurance distributor’ means any insurance intermediary, ancillary insurance intermediary or any insurance undertaking engaging in insurance distribution activities;’

Added:(c) the following points (19) to (22) are added:

Added:‘(19) ‘electronic format’ means any durable medium other than paper;

Added:(20) ‘marketing communication’ means any disclosure of information other than a disclosure required by Union or national law or other than the financial education material referred to in Article 16b, that directly or indirectly promotes insurance products or directly or indirectly entices investments in insurance-based investment products and that is made:

Added:(a) by an insurance undertaking or insurance intermediary, or by a third party that is remunerated, or incentivised through non-monetary compensation, by such insurance undertaking or insurance intermediary;

Added:(b) to natural or legal persons;

Added:(c) in any form and by any means;

Added:(20a) ‘finfluencer” means a natural or legal person carrying out a commercial influence activity by mobilizing their popularity to communicate to the public, by electronic means and for any sort of remuneration as defined in Article 2, point (5), of Delegated Regulation (EU) 2017/565, content aimed at promoting, directly or indirectly, financial products or contracts;

Added:(21) ‘marketing practice’ means any strategy, use of a tool or technique applied by an insurance undertaking or insurance intermediary, or by any third party that is remunerated or incentivised through non-monetary compensation by such insurance firm or insurance intermediary to:

Added:(a) directly or indirectly disseminate marketing communications;

Added:(b) accelerate or improve the reach and effectiveness of marketing communications;

Added:(c) promote in any way the insurance undertakings, insurance intermediaries or insurance products;

Added:(22) ‘online interface’ means any software, including a website, part of a website, or an application, including mobile application.’;

Added:(2) Article 3 is amended as follows:

Added:(-a) in paragraph 4, the fourth paragraph is replaced by the following:

Added:‘Home Member States shall ensure that the registration of insurance, reinsurance and ancillary insurance intermediaries is made subject to the fulfilment of the relevant requirements laid down in Article 10, including the requirement for an insurance or reinsurance intermediary to have an appropriate level of corporate substance with respect to an intra-group relationship with a branch of a registered insurance or reinsurance intermediary in a third country in accordance with Article 1(6).’;

Added:(a) in paragraph 4, in the sixth subparagraph, the second sentence is replaced by the following:

Added:‘Where applicable, the home Member State shall inform the host Member State of such removal immediately.’;

Added:(b) in paragraph 5, the following subparagraph is added:

Added:‘Where the registration is refused or where an insurance, reinsurance or ancillary insurance intermediary is removed from the register, the competent authority shall communicate its decision to the applicant or the insurance, reinsurance or ancillary insurance intermediary concerned in a well-reasoned document and inform EIOPA about the reasons for such refusal of registration or removal from the register.’;

Added:(c) the following paragraph 5a is inserted:

Added:‘5a. EIOPA shall establish and make available to competent authorities a list of all insurance, reinsurance or ancillary insurance intermediaries whose registration has been refused or which have been removed from the register by a competent authority.

Added:The list referred to in the first subparagraph shall contain, where applicable, information on the services or activities for which each insurance, reinsurance or ancillary insurance intermediary has sought registration, as well as the reasons for the refusal of registration or the removal from the register and shall be updated on regular basis.’;

Added:(d) in paragraph 7, the following subparagraphs are added:

Added:‘Member States shall ensure that competent authorities uphold the integrity of the internal market when making their decision to grant or refuse registration to an insurance, reinsurance or ancillary insurance intermediary, which is a legal person.

Added:Where an insurance or ancillary insurance intermediary, which is a legal person, has its head office in the same Member State as its registered office but provides or performs investment activities solely in other Member States, Member States shall ensure that the insurance, or ancillary insurance intermediary has a sufficient understanding of the risk and legal requirements to which it or its customers are subject, and acts in a manner consistent with Union law and the principles of the internal market, refraining from imposing restrictions on undertakings providing cross-border services in line with those principles.

Added:Member States shall ensure that the competent authority of the home Member State collaborates with the competent authority of the host Member State when assessing the fulfilment of the first subparagraph.’;

Added:(3) Article 5 is amended as follows:

Added:(a) paragraph 1 is replaced by the following:

Added:‘1. A competent authority of the host Member State that has reasonable grounds to consider that an insurance, reinsurance or ancillary insurance intermediary acting within its territory under the freedom to provide services infringes the obligations arising from the provisions adopted pursuant to this Directive, shall inform the competent authority of the home Member State thereof without undue delay.

Added:The competent authority of the host Member State shall inform EIOPA about the fact that it has informed the home Member State of its considerations. EIOPA shall forward such information to the competent authorities of all other host Member States where the insurance, reinsurance or ancillary insurance intermediary is acting under the freedom to provide services.

Added:After having assessed the information received pursuant to the first subparagraph, the competent authority of the home Member State shall, where applicable, take appropriate measures to remedy the situation at the earliest opportunity, and at the latest 30 working days after having received the communication from the competent authority of the host Member State. The competent authority of the home Member State shall inform the competent authority of the host Member State of any such measures taken. The competent authority of the home Member State shall communicate to the competent authority of the host Member State, and to the competent authorities of all other Member States on the territory of which the insurance, reinsurance or ancillary insurance intermediary is acting under the freedom to provide services, all relevant information on the measure taken.

Added:Where, despite the measures taken by the competent authority of the home Member State or because those measures prove to be inadequate or are lacking, the insurance, reinsurance or ancillary insurance intermediary persists in acting in a manner that is clearly detrimental to the interests of host Member State consumers on a large scale, or to the orderly functioning of insurance and reinsurance markets, the competent authority of the host Member State may, after having informed the competent authority of the home Member State, take appropriate measures to prevent further irregularities, including, in so far as is strictly necessary, preventing that intermediary from continuing to carry on new business within its territory.’;

Added:(b) paragraph 3 is replaced by the following:

Added:‘The competent authorities of the host Member State shall communicate to the insurance, reinsurance or ancillary insurance intermediary concerned any measure adopted under paragraphs 1 and 2 in a well-reasoned document and notify those measures to the competent authority of the home Member State without undue delay. The competent authority of the host Member State shall also notify those measures to the Commission, EIOPA and to the competent authorities of the host Member States where the insurance, reinsurance or ancillary insurance intermediary is acting under the freedom to provide services.’;

Added:(c) the following paragraph 4 is added:

Added:‘4. Where, within 12 months, two or more competent authorities of host Member States have taken measures pursuant to paragraph 1 with respect to one or more insurance, reinsurance or ancillary insurance intermediaries having the same home Member State, or if a home Member State disagrees with the findings of a host Member State, EIOPA may set up a cooperation platform in accordance with Article 12b.’;

Added:(4) the following Article 9a is inserted:

Added:‘Article 9a

Added:Reporting of cross-border activities

Added:1. Member States shall require that insurance distributors report the following information annually to the competent authority of their home Member State where they pursue cross-border activities under the freedom of services or the freedom of establishment with more than 50 customers on a cross-border basis:

Added:(a) the list of host Member States in which the insurance distributor is acting under the freedom to provide services or the freedom of establishment;