As Sweden transposes the EU Insurance Distribution Directive into local law, restrictions on third-party remuneration are being introduced by the legislature. These restrictions target intermediaries that give advice on the basis of a fair and personal analysis – historically, a category of intermediaries that often refer to their services as 'independent'. Under the Insurance Distribution Act, intermediaries that give advice in such a capacity can no longer be remunerated by anyone other than customers.
The European Court of Justice recently issued a preliminary ruling on a case referred by the Swedish Supreme Court concerning the interpretation of the concept of insurance mediation with respect to fictitious insurance products and whether investment advice regarding insurance-wrapped financial instruments fell within the scope of the EU Insurance Mediation Directive or the EU Markets in Financial Instruments Directive. Firm conclusions on the effect of the ruling are premature, but market adjustments are expected.
The Supreme Court recently referred a case to the European Court of Justice (ECJ) concerning the demarcation of insurance mediation and investment advice, and the extent to which the statutory liability insurance for insurance intermediaries should respond to claims in respect of such services. In tandem with the ECJ proceedings, the Swedish Ministry of Finance proposed that the EU Insurance Distribution Directive 2016/97 be transposed into local law by way of introducing an insurance distribution act.