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Financial regulator issues recommendation on bancassurance
   
Poland's financial market regulator KNF has issued the so-called "U" recommendation on good practices in bancassurance, prohibiting banks from combining the roles of insurer and insurance intermediary, and wants the document to take effect by end March 2015, the KNF said on Tuesday.

Separation of the roles of insurer and intermediary is at the center of a recommendation that consists of a series of guidelines pertaining to such areas as: management & supervisory board, protection against risk, delimitation of the bank's role, accounting policy, relations with clients and internal audit system.

Banks are obliged to inform their clients clearly whether they act as insurer or insurance intermediary, and provide them with comprehensive information about the insurance products tied to the banking products offered, the document stipulates. When in the role of insurer, banks must act with their clients' best interest in mind.

Banks must ensure that clients have a free choice of insurance company, the U recommendation reads.