Legislation MiFiD – Twin Peaks II

MiFID legislation - Twin Peaks II: our policy on conduct of business and conflicts of interest

On 30 April 2014, the Twin Peaks II legislation came into force, a legislation that aims to better inform and protect consumers with regard to their insurance.

Customer focus, information supply, transparency, service have always been essential for S.W.I.S. BV in its relationship with its customers. S.W.I.S. BV is obliged to comply with the AssurMiFID rules of conduct, as stipulated in the Act of 30 July 2013 on the protection of purchasers of financial products and services and on the authorisations of the FSMA and various provisions as well as the Royal Decree of 21 February 2014 on the rules for the application of Articles 27 to 28bis of the Act of 2 August 2002 on the supervision of the financial sector and financial services to the insurance sector and the Royal Decree of 21 February 2014 on the rules of conduct and on the management of conflicts of interest adopted pursuant to the Act, as far as the insurance sector is concerned. More information on how our firm implements these rules of conduct (including a conflict of interest policy) can be found under MiFID rules of conduct and conflict of interest policy.

Our communication with you will be in Dutch and English. Our firm offers insurance mediation services, i.e. the activities that consist of advising on insurance contracts, offering, proposing, carrying out preparatory work for the conclusion of insurance contracts or concluding insurance contracts, or assisting in the management and implementation thereof. For our services, we usually receive a fee from the insurance company, which is part of the premium that you pay as a customer. Otherwise, we will receive compensation from you as a customer for our services of insurance mediation. If applicable, this will be part of a separate agreement.

Conflicts of interest policy

The AssurMiFID rules of conduct require our firm to establish a written policy for managing conflicts of interest. Below you can find more information on how our office implements this.

Legislative framework

As of 30 April 2014, the "AssurMiFID rules of conduct" are in force. They find their legal basis in the Act of 30 July 2013 on the reinforcement of the protection of the clients of financial products and services and on the competences of the FSMA and various provisions as well as the Royal Decree of 21 February 2014 on the rules for the application of Articles 27 to 28bis of the Act of 2 August 2002 on the supervision of the financial sector and financial services to the insurance sector and the Royal Decree of 21 February 2014 on the rules of conduct and on the management of conflicts of interest drawn up pursuant to the Act, as far as the insurance sector is concerned.

In accordance with these rules of conduct, our firm is required to draw up a written policy for managing conflicts of interest when providing insurance mediation services.

The legal regulation of conflicts of interest is complementary to the general MiFID constitution. Our firm respects this constitution by acting honestly, fairly and professionally in the client's interest when providing insurance mediation services.

What conflicts of interest?

In view of our conflict of interest policy, our firm has, as a first step, identified the potential conflicts of interest in our firm.

Conflicts of interest may arise between (1) our firm and its associated persons and a client or (2) between several clients. The conflicts of interest policy takes into account the specific characteristics of our firm and its group structure, if any.

In assessing potential conflicts of interest, our firm has identified those situations where there is a significant risk of harming the interests of the client. These are:

• Situations in which profits are made or losses incurred at the expense of the client
• Situations in which our firm has another interest in the outcome of the service or transaction
• Situations where there is a financial incentive to put other clients first
• Situations in which the same business as the client is conducted
• Situations in which our firm receives a fee from a person other than the client for the insurance mediation services provided
• Situations in which our firm holds at least 10% of the voting rights or capital of the insurance company/companies
• Situations in which the insurance undertaking(s) holds(s) participations of at least 10% in the voting rights or in the capital of our firm

What measures does our office take?

Our office takes many measures to ensure that the interest of the customer prevails.

These include:

• An internal instruction note
• An adjusted remuneration policy
• A policy ensuring that the associates only act in relation to insurance contracts of which they know the essential characteristics and are able to explain them to the customer
• A policy that reserves the right for our firm, in the absence of a concrete solution to a specific conflict of interest, to refuse to provide the requested service with the sole objective of protecting the client's interests
• A regulation on the receipt of benefits
• A policy to ensure that all information provided by our associates is accurate, clear and not misleading
• If necessary, our firm's conflict of interest policy will be adapted and/or updated

What is the procedure?

Specific Transparancy 

When, in a concrete situation, our measures could not provide sufficient guarantee, you will be informed by our office about the general nature and/or the sources of the conflict of interest, so that you can make a well-considered decision. You can always contact us for more information.