We are consulting on our proposals for changes required to comply with the Insurance Distribution Directive (IDD).
The IDD covers the initial authorisation, passporting arrangements and ongoing regulatory requirements for insurance and reinsurance intermediaries. However, it also covers wider aspects, including organisational and conduct of business requirements for insurance and reinsurance undertakings.
The IDD also introduces requirements in new areas. These include product oversight and governance, and enhanced conduct rules for insurance based investment products, where its stated intention is to more closely align the customer protections with those provided by MiFID II.
This is the first of two consultation papers setting out our proposals for implementing the IDD. This consultation paper covers our proposals for the following areas:
This consultation will interest insurance and reinsurance companies, intermediaries, customers in the insurance market and bodies representing these groups. It will also be of interest to designated professional bodies whose members conduct insurance distribution activities.
The consultation also proposes a wider change to the definition of ‘durable medium’ in the Handbook. This is likely to impact most financial services firms.
This consultation has now closed.
A second consultation paper will be published later this year. We will consider your feedback and aim to publish our rules in a Policy Statement by September 2017. The proposals we implement from both consultations will take effect on 23 February 2018.