Update to proposed delay on the Insurance Distribution Directive (IDD)

The European Commission (the Commission) has proposed a delay to the application date of the IDD to 1 October 2018. This proposal is currently under consideration by the European Parliament and European Council.

In order to provide certainty for industry, Her Majesty’s Treasury has announced that the government will delay transposing the IDD into UK law until the outcome of this proposal has been confirmed. This is expected to be after 23 February 2018, the original application date of the directive.

Therefore, once the IDD is transposed into UK law we will make our final rules – these were published in near-final form on 19 January 2018 (as we said in PS18/1, we do not expect to make any changes to the near-final rules). Firms will then be required to comply with our final rules from whatever date is ultimately agreed at European level as the application date of the directive - under the current proposal from the Commission, this date would be 1 October 2018.