(11 years, 10 months ago)
Written StatementsRead Hansard Text Read Debate Ministerial Extracts
The Economic Secretary to the Treasury (Sajid Javid)
The Government have opted in to the European Commission’s proposals for a directive of the European Parliament and of the Council on insurance mediation (recast) (IMD 2) and proposal for a regulation of the European Parliament and of the Council on key information documents for investment products (KIDs).
The Commission’s objective in revising the IMD is to improve regulation in the retail insurance market in an efficient manner. The proposals for IMD 2 aim at ensuring a level playing field between all participants involved in the selling of insurance products and at strengthening policyholder protection.
The KID proposals aim to improve pre-contractual disclosure and the comparability of packaged retail investment products for consumers. They will do so by obliging manufacturers to produce a comparable and standardised disclosure called a KID, and requiring distributors to provide the KID before the sale.
Both sets of proposals currently include provisions on alternative dispute resolution which impose requirements on the UK’s civil justice system, in terms of the operation of limitation periods and the availability of interim remedies. On this basis the Government consider that the JHA opt-in protocol applies and that the UK can therefore choose whether to opt in.
The Government believe that in view of the wider significance of these proposals it is in the UK’s interests to participate, therefore we have opted in.