CP17/7: Insurance Distribution Directive implementation – consultation paper I

Open consultation
Consultation closes
Policy Statement
September 2017

We are consulting on our proposals for changes required to comply with the Insurance Distribution Directive (IDD).

Show CP17/7 (PDF)

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:

  • application of the Directive (Chapter 2)
  • professional and organisational requirements (Chapter 3)
  • complaints handling and out-of-court redress (Chapter 4)
  • changes to conduct of business rules (for non-investment insurance contracts) (Chapter 5)
  • the regulatory regime for ancillary insurance intermediaries (Chapter 6)

Who this applies to

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.

What you need to do

This consultation has now closed.

Next steps

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.

David Geale on the IDD consultation

David Geale, our Director of Policy, talks about why we are seeking your feedback in this consultation.