(Finance) – The European Commission he decided to initiate an infringement proceduresending a letter of formal notice to Germany, Italy and Austria for not having correctly transposed the provisions of the insurance distribution directive.
The Insurance Distribution Directive establishes minimum standards for distribution of insurance products in the single market to ensure a high level of professionalism, transparency and consumer protection.
The letters of formal notice relate to the provisions on insurance intermediaries controlled by third country persons in the case of Austria and Germany, on ancillary insurance intermediaries selling insurance products as an addition to their products and services and on the publication of sanctions in the case of Germany and the rules on cross-border activities of insurance intermediaries under the freedom of provision regime of services in the case of Italy.
Germany, Italy and Austria have now two months to respond and resolve the shortcomings raised by the Commission. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.