PS18/1: Insurance Distribution Directive implementation - Feedback and near-final rules to CP17/33 and other IDD consultations

Open consultation: CP17/33
25/09/2017
Consultation closes
25/11/2017
Policy statement: PS18/1
19/01/2018
19/01/2018

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

Show PS18/1 (PDF)

This Policy Statement responds to the feedback we received to CP17/33 (our third IDD CP), as well as feedback on certain matters deferred from CP17/23 (the second CP), and feedback to the IDD-related aspects of two Quarterly Consultation Papers (CP17/32 and CP17/39). It summarises:

  • our approach to the IDD delegated acts (Chapter 2)
  • changes to our requirements related to the distribution of insurance-based investment products (IBIPs) and wider life insurance business:
    • inducements (Chapter 3)
    • suitability and appropriateness (Chapter 4)
    • information and product disclosure (Chapter 5)
  • changes to our rules to implement requirements in the IDD that apply to life and non-investment insurance business, including:
    • conflicts of interest (Chapter 6)
    • product oversight and governance (Chapter 7)
    • Perimeter Guidance (Chapter 8)
    • regulatory processes (Chapter 9)
  • additional changes to the Handbook (Chapter 10)
  • feedback to quarterly consultations CP17/32 and CP17/39 (Chapter 11)

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 and their members.

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.