EIOPA aims to enhance variable annuity selling standards in the EU

Seemingly in preparation wider
adoption of variable annuity (VA) products in the European Union,
the European Insurance and Occupational Pensions Authority (EIOPA)
has just published its draft report on
Good Practices for Disclosure and Selling of Variable
Annuities.

The report was prepared by EIOPA’s
Committee on Consumer Protection and Financial Innovation with the
goal of establishing good disclosure and selling practices for
VAs.

EIOPA chairman Gabriel Bernardino
said: “This is EIOPA’s first consultation in the area of consumer
protection and of great significance to us.”

Bernardino explained that the
analysis underlying the report has a product-specific focus and
that the result of the consultation will shape EIPOA’s approach to
dealing with disclosures and selling arrangements for insurance
contracts with an investment element.

The report is open for comment by
market participants and consumers until 3 January 2012.

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