Michael McGrath (Cork South Central, Fianna Fail)
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103. To ask the Minister for Finance the status of the transposition of EU Directive 2016/97 on insurance distribution; the way in which each of the discretions allowed will be handled; his plans to ban commission in respect of IBIPs which are sold on the basis of independent advice; if the definition of the term "independent" in this context will be clarified; if the difference between MIFID products and products falling under the IDD will be addressed; and if he will make a statement on the matter. [35045/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Insurance Distribution Directive was published in the Official Journal of the European Union in February 2016 and must be transposed into Irish law by February 2018. It will replace the Insurance Mediation Directive which was adopted in 2002 to regulate point of sale insurance products and will create a single market for the sale of insurance products. The Insurance Distribution Directive aims to further enhance consumer protection and ensure a level playing field by extending the scope of the directive to include all sales of insurance products. It will also seek to identify and mitigate conflicts of interest in particular in the area of commissions, and strengthen administrative sanctions.

Work has commenced on the transposition of IDD including the holding of a public consultation on the national discretions in the Directive which ran during April - see link:

My Department is currently preparing a submission for me on the transposition process with particular focus on how the discretions should be handled. For the purpose of this exercise the views of the various stakeholders who participated in the public consultation as well as the Central Bank will be included and will therefore form part of my considerations on these matters.

In the hierarchy of discretions, it is acknowledged that the discretion in Article 29(3) of IDD which allows Member States amongst other things to prohibit the offer or acceptance of fee, commissions etc., from third parties in relation to the provision of insurance advice, is of particular importance. This is in turn directly relevant to the issue of independence and the issue of a level playing field for investment products sold under MIFID and those sold under IDD.

Finally, I hope to have completed my consideration on the IDD discretions in September. Soon after that the matter will be referred to the Attorney General’s Office with a view to having this Directive transposed in advance of the deadline of February 2018.