Legal alert no. 83

Law No. 7/2019, of January 16 – Insurance and Reinsurance Distribution Regime.

On 16 January 2019, Law 7/2019 (hereinafter "Law 7/2019") was published in the Official Gazette of the Republic of Portugal.

Law 7/2019 approves the legal regime for the distribution of insurance and reinsurance, transposing the EU Directive 2016/97 ("IDD"), and amends Law 147/2015, of September 9 approving the legal regime for access to and exercise of the insurance and reinsurance activity ("RJASR").

This Law repeals the previous legal regime of insurance mediation approved by DL 144/2006, of July 31 and extends the subjective scope of the insurance distribution regime, which now covers insurance and reinsurance undertakings and entities distributing insurance on an ancillary basis.

Law 7/2019 was approved following the Draft Bill 138/XIII, having as main changes those highlighted in the CTSU Newsletter no. 3/2018, available here.

Although only published on January 16, 2019, Law 7/2019 takes effect from 1 October 2018, in line with what is established by the European legislator(1), except for the provisions that enable the ASF to issue regulatory standards, which take effect from the date of entry into force of this law, i.e., from 16 January 2019. These regulatory standards will supplement the national legal framework of distribution of insurance. The provisions of the regulatory standards already issued by the ASF, in all matters that do not contradict the DS Law, shall remain in force until they are replaced.

Finally, Law 7/2019 provides a transitional regime until 23 February 2019 regarding appropriate qualification.

Access here the full version of the Law 7/2019.

(1)EU Directive 2018/411, of 14.03.2018, which amended the IDD, required Member States to apply the provisions of the IDD at the latest from 1.10.2018. This explains the retroactivity imposed by Law 7/2019. Access here the full text of EU Directive 2018/411 of 14.03.2018.


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