This is our first Policy Statement setting out our near final rules for our implementation of the Insurance Distribution Directive (IDD).
This Policy Statement sets out our near final rules based on the feedback we received to CP17/7. It covers:
- the scope and application of the IDD, including the regimes for ancillary insurance intermediaries
- professional, organisational and prudential requirements for insurance distributors
- complaints and out-of-court redress
- conduct of non-investment insurance and pure protection business
Who this applies to
This Policy Statement will affect a large number of firms we authorise, as well as some firms who are exempt from authorisation. The types of firms affected will be:
- insurance brokers
- reinsurance brokers
- managing general agents
- professional firms involved in insurance business (both authorised and exempt)
- appointed representatives who conduct insurance business
- ancillary insurance intermediaries (including those excluded from regulation through the connected contracts exclusion)
Consumers have a clear interest in financial markets that operate fairly and transparently, which is the rationale for the proposals in this CP. Some of the subjects covered, including the conduct of business rules, will be of significant interest to consumers.
It has been agreed at European level to delay the IDD from its original application date of 23 February 2018. Member States are now required to transpose the directive by 1 July 2018, and firms will be required to comply with the new requirements from 1 October 2018.
We made our final rules on 24 May 2018, which will apply to firms from 1 October 2018.