Circular No. 11/2025: framework applicable to the cross-border activity of insurance intermediaries

The Portuguese Insurance and Pension Funds Supervisory Authority (ASF) has issued Circular No. 11/2025 of 2 December, through which it discloses the Decision of the EIOPA Board of Supervisors on cooperation between the competent authorities of the Member States of the European Economic Area, for the purposes of applying Directive (EU) 2016/97 (IDD) in the context of cross-border insurance distribution activities.

The Circular is addressed to insurance intermediaries, reinsurance intermediaries and ancillary insurance intermediaries registered in Portugal, clarifying the applicable framework when they carry out activities in other Member States under the freedom to provide services or the right of establishment.

Key elements of the guidance issued

Single registration principle

Registration of intermediaries with the ASF, as the competent authority of the home Member State, produces effects throughout the EEA. The decision on registration and the core supervisory responsibilities lie exclusively with the ASF.

Activity carried out exclusively or mainly in another Member State

Where there are indications that the business model is based on predominantly carrying out insurance distribution activities outside Portugal, the ASF may question the intermediary regarding the underlying strategy and exchange information with the competent authority of the host Member State.

Notification of cross-border activity

The Circular clarifies the operational concepts of:

• Freedom to provide services, including situations where the policyholder is located in another Member State;
• Right of establishment, covering branches or other forms of permanent presence.

Notification is treated as evidence of the intention to carry out cross-border activities.

Exchange of information and cooperation in supervision

The framework for ongoing cooperation between competent authorities is reinforced, covering in particular:

• compliance with professional and organisational requirements;
• market conduct;
• cessation of cross-border activities;
• complaints handling, with clear rules on the allocation of competences between authorities.

Practical relevance

Although the Circular does not introduce new substantive obligations, it systematises and further details the procedures applicable to registration, notification and cooperation, increasing the level of scrutiny over cross-border structures and requiring enhanced robustness in terms of:

• governance;
• compliance;
• coordination with foreign supervisory authorities.

For more information on our insurance practice, please contact our team.