PS17/21: Insurance Distribution Directive implementation – Feedback to CP17/7 and near-final rules

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Policy Statement

This is our first Policy Statement setting out our near final rules for our implementation of the Insurance Distribution Directive (IDD).

Show PS17/21 (PDF)

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
  • insurers
  • reinsurers
  • 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.

What you need to do

Firms need to continue with their preparations for the application of the IDD on 23 February 2018. Firms also need to respond to:

Next steps

We intend to publish our next Policy Statement in December 2017. This will cover rules for product oversight and governance, conduct rules for insurance-based investment products and the new Insurance Product Information Document.