On 23 December 2016, the Dutch Minister of Finance published for consultation a draft legislative proposal implementing the Insurance Distribution Directive (IDD) (the Proposed Act). The Proposed Act will be implemented in, among others, the Act on the Financial Supervision (Wet op het financieel toezicht). The IDD aims to: (i) create a level playing field for all market participants that are involved in the sale of insurance contracts; (ii) improve consumer protection; and (iii) promote a single market for financial services. The IDD applies to insurance companies, insurance intermediaries and companies that sell insurance contracts in addition to goods or the provision of a service.
The Proposed Act provides for clarification in respect of the notification procedure for the provision of cross-border services and further rules in respect of certain rules of conduct, such as rules relating to tying (koppelverkoop) and the requirement that each – proposed – insurance should meet the needs and requirements of the client.
View the Proposed Act (Dutch only), 23 December 2016.
View the Explanatory Memorandum to the Proposed Act (Dutch only). 23 December 2016.