Regulation 4 Product governance requirements for manufacturers

Chapter 2 (product governance requirements for manufacturers) is amended as follows.

In Article 5 (target market), after paragraph 4, insert—

“5.

For the purposes of paragraph 2, reference to an ‘insurance-based investment product’ is to an insurance product which offers a maturity or surrender value where that maturity or surrender value is wholly or partially exposed, directly or indirectly, to market fluctuations, except those products listed in paragraph 6.

6.

For the purposes of paragraph 5, an ‘insurance-based investment product’ does not include:

(a)

non-life insurance products as listed in Annex I of Directive 2009/138/EC^f1 (Classes of non-life insurance);

(b)

life insurance products where the benefits under the contract are payable only on death or in respect of incapacity due to injury, sickness or disability;

(c)

pension products which, under national law, are recognised as having the primary purpose of providing the investor with an income in retirement, and which entitle the investor to certain benefits;

(d)

officially recognised occupational pension schemes as defined in section 1(1) of the Pension Schemes Act 1993^f2;

(e)

individual pension products for which a financial contribution from the employer is required by national law and where the employer or the employee has no choice as to the pension product or provider.”.

In Article 8 (distribution channels), in paragraph 3, in point (d), for “Article 17(1) of Directive (EU) 2016/97” substitute “rule 2.5-1 of the Insurance: Conduct of Business sourcebook and rule 2.1.1 of the Conduct of Business sourcebook”.

In Article 9 (documentation), for “competent authorities” substitute “Financial Conduct Authority”.