Distance Marketing Directive

The Distance Marketing Directive took effect on the 15th February 2005. It applies when a contract for financial services (including life assurance products) is arranged on an organised distance sales basis.

What is a distant sale? 

A distant sale is defined as one that is arranged using means of communication though which the consumer and 
the supplier (e.g. intermediary) are not in one another’s presence; i.e. when the contract is arranged exclusively by post, internet or telephone and there is no face to face meeting between the intermediary and the customer.     

Do the regulations apply if the intermediary meets the customer during the course of arranging the contract? 

Once a face-to-face meeting has taken place in the course of arranging the contract, it is not considered a “distant sale”.

What do the regulations require? 

The regulations specify that when a distant sale has taken place certain information is provided to the customer within a reasonable time before the customer is bound by the contract. It must be provided by the intermediary before the sale is completed.

What information must be given to the customer prior to completion of the contract? 

  • Intermediary’s terms of business letter  
  • The product booklet
  • The generic customer information notice
  • The product terms and conditions  
  • Additional information included in Schedule 1 of the regulations that is not included in the booklet or CIN. 

The Irish Life Schedule 1 can printed and given to the customer.