Distribution of savings and investment insurance without capital guarantees

At the start of October, the Portuguese Insurance and Pension Funds Supervisory Authority issued Recommendation 2/2024, which includes guidelines aimed at enhancing transparency, ethics and consumer protection in the distribution of savings and investment products without capital guarantees. 

Key aspects

• Target market definition: Savings products without capital guarantees should only be offered to consumers with suitable risk profiles. Extra protection is needed for those who exceed the average life expectancy.
• Protection of vulnerable consumers: The recommendations aim to enhance security, ethics and transparency, protecting consumers with lower financial literacy from improper practices.
• Rigour and clarity of information: The recommendations require that product communications be clear and precise, avoiding ambiguities and making the associated risks easy to understand.
•  Responsibility and integrity in distribution: Insurance companies and intermediaries are encouraged to create an ethical environment that prioritizes clients’ interests and ensures high standards of professionalism.