The European Insurance and Occupational Pensions Authority (EIOPA) has published a report on good supervisory practices relating to knowledge and ability requirements for distributors of insurance products.
The report outlines good supervisory practices in the form of non-binding high-level principles that competent authorities should apply to distributors of insurance products. It also provides indicative examples of what a competent authority could require a distributor to demonstrate in terms of knowledge and ability. The list of good supervisory practices that are encouraged, include:
- the notion of “appropriate knowledge and ability” to complete tasks and perform duties adequately; and
- updating knowledge and ability through continuous professional development.