FCA Publishes PS17/27 on Feedback to CP17/23 on Implementation of IDD
FCA published the policy statement PS17/27, which sets out response to the feedback received to the consultation paper CP17/23 on Insurance Distribution Directive (IDD). CP17/23 and PS17/27 cover the implementation of most IDD Level 1 matters; these include the remaining conduct requirements for life policies and information disclosure in relation to non-investment insurance contracts, which were not covered in the earlier consultation CP17/7. The implementation date for PS17/27 is February 23, 2018.
FCA had earlier published the near-final rules as part of PS17/21 in September 2017, covering the matters consulted on in CP17/7, from March 01, 2017 to June 05, 2017. This was partly due to some of the proposed rules relying on domestic legislation that has not yet been made, interdependencies on the terms within the FCA Handbook Glossary, and certain overlapping requirements between CP17/7 and the later consultations. FCA is now continuing that approach by publishing additional near-final rules in PS17/27, which also reflects that CP17/33 included additional discussion on some of the same matters as CP17/23. Publishing near-final rules now gives firms earlier sight of the final proposals, so they have more time to plan for IDD implementation and allows the authority to avoid making sequential changes to the same rules. FCA will look to finalize the rules as soon as the legislation is amended and does not expect to make any substantive changes to the near-final rules.
FCA had received 53 responses to the consultation, most of which supported the proposals or asked for further guidance. FCA proposes to implement the consultation proposals with only minor changes to the consulted rules. The minor changes reflect amendments that have been made to implement MiFID II and the Financial Advice Market Review (FAMR). FCA aims to publish the third policy statement in January 2018, with an implementation date of February 23, 2018. PS17/27 will interest insurance and reinsurance companies, intermediaries, other firms and customers in the insurance market, and bodies representing these groups.
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Effective Date: February 23, 2018
Keywords: Europe, UK, Insurance, IDD, PS17/27, CP17/23, FCA
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