(2)in Article 3, paragraph 1 is replaced by the following:‘1.For the purposes of identifying, in accordance with Article 28 of Directive (EU) 2016/97, the types of conflicts of interest that arise in the course of carrying out any insurance distribution activities related to insurance-based investment products and which entail a risk of damage to the interests of a customer, including his or her sustainability preferences, insurance intermediaries and insurance undertakings shall assess whether they, a relevant person or any person directly or indirectly linked to them by control, have an interest in the outcome of the insurance distribution activities, which meets the following criteria:
(a)it is distinct from the customer’s or potential customer’s interest in the outcome of the insurance distribution activities;
(b)it has the potential to influence the outcome of the distribution activities to the detriment of the customer.
Insurance intermediaries and insurance undertakings shall proceed in the same way for the purposes of identifying conflicts of interest between one customer and another.’;