The German Federal Government misses timely translation of EU Insurance Mediation Directive thereby creating legal uncertainty

 

Munich, January 25, 2005

 

BRAIN FORCE Financial Solutions AG supports banks and insurers in ensuring that their sales and consulting activities in relation to old age provision products are legally sound.

 

Since the EU Insurance Mediation directive 2002/92/EC has not yet been incorporated into national law, a liability for damages might become due should customers suffer damage because they are not advised in accordance with the new regulations and their consultation is not documented as provided for by the directive.

 

With the FINAS provision optimising programme, financial service providers can escape this sword of Damocles: Already today, business procedures supported by the application of BRAIN FORCE Financial Solutions AG systems cover customer consultation in full compliance with the new provisions.

 

Furthermore, the FINAS provision optimising programme provides written documentation, which cannot be edited.

 

"Financial service providers should not just sit back and relax until the provisions of the EU Insurance Mediation Directive come into force in Germany – this would be negligent!" warns Manfred Schmaderer, Sales Director and member of the board of BRAIN FORCE Financial Solutions AG.

 

"The FINAS provision optimising programme provides already now consulting documentation which is safe from a legal point of view. Using this tool, banks and insurers look to a secure future!"

 

 

The EU Insurance Mediation Directive was published in the Official Journal of the EU as early as January 15, 2003. Its major items deal with regulations concerning the admission of insurance brokers, occupation of brokers and co-operation with brokers.

 

The German Federal Government has had two years to incorporate the provisions into national law which is likely to happen by the end of 2005 within the framework of two legislation stages.

 

 

The "first act of the reconstitution of the insurance mediation law", the so-called "preliminary law" is currently being discussed in Parliament.

 

Among other things, it will contain provisions pertaining to the customer consultation including written documentation and could become effective as early as summer 2005.

 

The "second act of the reconstitution of the insurance mediation law" is lagging behind. According to experts' estimates, it will not come into force before autumn 2005.

 

It covers the other provisions of the EU insurance mediation directive and regulates in particular the admission of brokers.