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:
- 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.
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.