PS17/27: Insurance Distribution Directive implementation – Feedback to CP17/23 and near-final rules

Open consultation: CP17/23
24/07/2017
Consultation closes
20/10/2017
Policy Statement: PS17/27
15/12/2017
15/12/2017

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

Show PS17/27 (PDF)

This Policy Statement responds to the feedback we received to CP17/23 and summarises our approach to making:

  • changes to our rules to implement the IDD requirements for life insurance business generally, including additional requirements related to the distribution of insurance-based investment products:
    • firms’ general obligations (Chapter 2)
    • information disclosure to customers (Chapter 3)
    • inducements (Chapter 4)
    • suitability (Chapter 5)
    • appropriateness (Chapter 6)
  • changes to our rules to implement requirements in the IDD that apply to life and non-investment insurance business, including:
    • conflicts of interest (Chapter 7)
    • product oversight and governance (Chapter 8)
    • requirements relating to the protection of customers’ money (Chapter 9)
    • professional requirements relating to the good repute of employees of insurance distributors (Chapter 10)
  • additional Handbook changes relating only to non-investment insurance business, including information disclosure requirements and the insurance product information document (Chapter 11)
  • consequential amendments to other parts of the Handbook (Chapter 12)

Who this applies to

This Policy Statement will interest insurance and reinsurance companies, intermediaries, other firms and 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.

Next steps

On 20 December 2017, the European Commission (the Commission) proposed delaying the application date of the IDD to 1 October 2018. The European Parliament and the Council will need to agree on the new application date before the delay is formally adopted and published in the Official Journal of the European Union. Under this proposal, firms would have until 1 October 2018 to implement the new IDD requirements.

We intend to publish final rules once the Treasury’s legislation is in force. Firms affected by these rules will need to ensure compliance by the application date specified in these final rules, depending on the outcome of the proposed delay.

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