Product rules: IDD, PRIIPs and the FinSA regime

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Within the European Union, life insurance policies with an investment component are insurance-based investment products. Their distribution is governed by the Insurance Distribution Directive, which imposes on insurers and intermediaries duties of information, suitability and appropriateness and rules on conflicts of interest and inducements. These rules correspond to those of MiFID II for investment products, although they are laid down in a separate instrument. In addition, the PRIIPs Regulation requires the insurer to provide a key information document before the conclusion of the contract.¹

In Switzerland, the Financial Services Act does not apply to insurers, which are governed by the Insurance Supervision Act. The revision of the Insurance Supervision Act, in force since 1 January 2024, introduced the category of qualified life insurance, which covers life insurance with an investment component. For these products, insurers must provide a key information document, examine the suitability or appropriateness of the product for the client and document the advice given. The Swiss legislator thereby aligned the conduct rules for insurance-based investment products with those of the Financial Services Act.²

Notes

Directive (EU) 2016/97 on insurance distribution (IDD), in particular Art. 26–30 on insurance-based investment products, and Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs). To be verified. ↩
Art. 39a ff. ISA (qualified life insurance), as introduced by the partial revision of the Insurance Supervision Act in force since 1 January 2024, and the corresponding provisions of the Insurance Supervision Ordinance. To be verified. ↩

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of August 2025.

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Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

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Product rules: IDD, PRIIPs and the FinSA regime

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