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