News about competency requirements for brokers

New competence- and training requirements for insurers, employees in insurance companies and insurance brokers are coming into force

Competency requirements for brokers

With the “new” act on insurance distribution from 2018, a number of new competence- and training requirements for insurers, employees in insurance companies and insurance brokers also came into force.

Approximately one year after the most recent executive order on competence, the Danish Financial Supervisory Authority is now issuing a new executive order on competence requirements. The Executive Order will enter into force on 1 July 2021.

For reassurance, the new executive order does not contain significant new information, but only fills in the “gap” that existed in relation to certain employees of the brokers. The previous executive order laid down the requirements for employees who have direct customer contact and e.g. conduct tenders on behalf of major insurance customers. The new executive order also includes those employees who are not responsible for e.g. tenders, but has more administrative tasks. It can e.g. be assistants, customer supporters or customer coordinators. These employees must have a basic knowledge of the Act on Insurance Distribution and in particular the requirement to be independent. In addition, they must have knowledge of the broker's obligation only to look after the client's interests.

The new executive order contains a transitional rule. Employees covered by the executive order may continue to work within their areas of work, as long as they pass a continuing education test by 1 October 2022.

All other insurance distributor employees must have their continuing education test in place by 1 October 2021.

If you want to read more about the competence executive order, read my previous post about competence requirements for insurance employees.