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

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.

Her Majesty’s Treasury had previously announced that the government would delay transposing the IDD into UK law until the delay to the IDD was confirmed. Once the IDD is transposed into UK law we will make our final rules – these were published in near-final form on 19 January 2018.

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