This is our third 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 CP17/33 (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:
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.
The European Commission (the Commission) has proposed a delay to the application date of the IDD to 1 October 2018. This proposal is currently under consideration by the European Parliament and European Council.
In order to provide certainty for industry, Her Majesty’s Treasury has announced that the government will delay transposing the IDD into UK law until the outcome of this proposal has been confirmed. This is expected to be after 23 February 2018, the original application date of the directive.
Therefore, 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 (as we said in PS18/1, we do not expect to make any changes to the near-final rules). Firms will then be required to comply with our final rules from whatever date is ultimately agreed at European level as the application date of the directive - under the current proposal from the Commission, this date would be 1 October 2018.