Commission ban for complex and impactful products
If the client purchases financial advice for complex financial products such as a mortgage, the client pays the advice and distribution costs himself. Prior to the introduction of the commission ban, advisers received commission (e.g. a bonus) from the insurer in question when selling a financial product. This financial incentive did not always lead to the best advice for the customer. That is why in 2013, partly on the initiative of the Association, the commission ban was introduced. This legislation applies to both financial advisers and insurers.
In 2018, the ban on commissions was evaluated in 2018 on the basis of two studies, one on market effects and the other on consumer behaviour. On this basis, the Minister of Finance has concluded that the ban is effective. For complex and impactful financial products, the introduction of the commission ban is a major step towards making the distribution system future-proof.
On 1 July 2024, the new rules for nominal active commission transparency in private non-life insurance will come into force. In addition to rules for nominal active commission transparency, the Financial Markets Amendment Decree 2023 also contains rules for automated advice and reducing the frequency of checks of the cost price model for advisory and distribution costs.
View the circular active commission transparency damage
Since 1 October 2018, European market parties must comply with the Insurance Distribution Directive (IDD). The IDD is set out in the Financial Supervision Act (Wft). The IDD allows Member States to introduce a ban on commissions.
