State of Play Retail Investment Strategy

In October , the Association indicated that it considered several new rules in the Retail Investment Strategy (RIS) duplicative and unnecessary for the Dutch insurance market. At the beginning of the new year, we would like to give an update: Where is the European legislative process going?

The RIS proposals aim to encourage retail investors to become more active in European investment markets. Confidence in the European financial markets must be increased through a partial ban on commissions (for independent advice and execution-only services) on investment-related products. And by including the Value for Money (VfM) concept in the RIS, the Commission aims to reduce the cost of European investment-related products in order to increase the value of these products. This is done through a solid framework with benchmarks and a pricing process.

Commitment Dutch Association

1. The Association's efforts include a plea for exemptions from the VfM and the best interest of customer principle, because the Netherlands already has a ban on commissions.
2. The Association also proposes that the obligation for annual statements should only apply to new agreements to be concluded (deference to effect).

European Parliament (EP)

Financial institutions and other parties, such as the Association, have submitted 1300 amendments (proposals for amendments) in consultation with Dutch MEPs. In the coming months, these changes will be discussed in various meetings (because the earlier discussion on 28 November did not take place). At the same time, the vote of the Committee on Economic and Monetary Affairs (ECON) on the RIS proposals has been postponed until 20 March 2024. After that, it will be clear what the EP's position is.

The Council

The Spanish presidency ended on 31 December 2023. The presidency has drawn up a progress report, which has not yet been made public. It contains both the parts on which agreement has been reached and the outstanding discussion points. The Belgian Presidency, which runs from 1 January to 31 June 2024, will continue negotiations to reach a final position on all proposals.

EIOPA Consultation Benchmarks

On 15 December 2023, the European Insurance and Occupational Pensions Authority (EIOPA) published a public consultation on a methodology proposed by EIOPA to establish value-for-money benchmarks for unit-linked and hybrid insurance products. The IDD Working Group analyses this consultation and, if necessary, responds through the Distribution Committee.

Continuation

The Council and the EP will decide their position in the coming months. The Association will continue to engage with MEPs and other stakeholders in order to continue to draw attention to the interests of Dutch insurers. In view of the European elections from 6 to 9 June 2024, the Council and the EP still need to take significant steps to complete the legislative process before the elections.