Insurance intermediaries are facing increasingly demanding regulatory requirements. Where concrete action is now required.
Dr. Kiril R. R. Haslebacher
Senior Legal Associate
I. The regulatory transition period is over
With the revision of the Insurance Supervision Act (VAG) and the Supervisory Ordinance (AVO), the regulatory requirements for insurance intermediaries have been significantly tightened with effect from 1 January 2024. The new rules relate in particular to the training and continuing professional development of intermediaries, the handling of conflicts of interest, registration obligations and the organisational structure of distribution companies.
Over the past two years, many intermediary firms have focused on implementing the new requirements. Recent statements by FINMA at the Intermediaries’ Symposium on 17 June 2026 now show that the emphasis is increasingly shifting: the focus is no longer on implementing the new regulatory requirements by introducing new processes, but rather on actual compliance with them in day-to-day sales operations and on regulatory scrutiny by FINMA.
Insurance intermediaries are therefore increasingly faced with the question of whether existing sales structures, remuneration models and compliance processes actually meet regulatory expectations.
II: Key areas of action for insurance intermediaries
1. Training and continuing professional development
FINMA notes that, even after the new regulatory requirements have come into force, risks relating to the professional qualifications of insurance intermediaries continue to exist. Inadequate knowledge and skills can lead to incorrect or incomplete advice and thus undermine customer protection. Against this background, the revised supervisory legislation requires insurance intermediaries to possess the knowledge and skills necessary for their work and to maintain these on an ongoing basis through appropriate training and continuing professional development.
Insurance intermediaries should therefore regularly check whether the necessary qualifications are in place within their organisation and are adequately documented. There is currently a particular need for action in connection with the first recertification of insurance intermediaries who are already registered. The deadline for submitting proof of training to the VBV is 22 August 2026. Insurance intermediaries are therefore well advised to check early on that the training requirements have been met and that the supporting documentation is complete, and to address any gaps in good time.
2. Conflicts of interest and remuneration models
Another key focus is on conflicts of interest. FINMA continues to regard misaligned incentives in sales as a key cause of customer complaints and supervisory risks. Many intermediaries have been working with established commission and remuneration models for years. However, it is precisely such historically developed structures that are increasingly being scrutinised.
Against this backdrop, insurance intermediaries should review their remuneration and distribution models and, in particular, ensure that potential conflicts of interest are systematically identified and managed, that disclosures to clients are complete and comprehensible, and that there are no incentive structures that run counter to clients’ interests. Hybrid business models, digital distribution channels and multi-tiered distribution structures present particular challenges in this regard.
3. Registration and distribution structures
FINMA continues to identify a significant number of intermediary activities being carried out without the required registration. This applies not only to individual intermediaries but also, frequently, to more complex distribution organisations involving sub-intermediaries, cooperation partners or digital distribution solutions.
In advisory practice, questions such as the following regularly arise:
Is the intermediary tied or independent?
Which individuals must be registered?
How should sub-intermediaries be classified?
Who bears which responsibilities within a distribution structure?
Misjudgements can have significant regulatory consequences and often only come to light during an audit or following a customer complaint. For a concise overview of the registration requirements, please refer to the MME article dated 18 August 2023.
4. Governance and Compliance
The experience of supervisory authorities shows that regulatory issues are rarely attributable to isolated errors. The causes often lie in organisational weaknesses, unclear responsibilities or a lack of control mechanisms. Typical challenges include inadequate sales monitoring, the failure to detect or the delayed detection of patterns of misuse, and unclear internal responsibilities.
Insurance intermediaries should therefore check whether their organisation still meets the increased regulatory requirements. Smaller and medium-sized intermediary firms in particular tend to underestimate the effort required to establish a robust governance structure.
III. Why a review makes sense now
Once the key transition periods have expired, FINMA is likely to focus more closely on the practical implementation of the regulatory requirements. Many companies have already made significant investments in implementing the revised Insurance Supervision Act (VAG). Nevertheless, experience shows that weaknesses often only become apparent during a targeted legal or regulatory review.
An early analysis makes it possible to identify risks and make adjustments in an orderly manner before they become the subject of a supervisory review or supervisory proceedings.
IV: Conclusion
The regulatory framework for insurance intermediaries is now largely defined. The focus is increasingly shifting to the question of whether the new requirements are actually being implemented effectively within the organisation.
Particular risks currently exist in the areas of training and further education, conflicts of interest, registration and governance. Insurance intermediaries would be well advised to review their structures regularly and to critically examine existing assumptions.
MME regularly advises insurance intermediaries on registration issues, the review of remuneration models, governance matters, distribution structures and the implementation of the revised regulatory requirements. Risks identified at an early stage can often be addressed much more efficiently than regulatory findings identified retrospectively. The MME team will be happy to assist you.
