EC Proposes to Amend Application Date of IDD and Related Regulations
EC proposed a Directive to amend the Insurance Distribution Directive, or IDD, (Directive 2016/97) with respect to the date of application of transposition measures of member states. EC also proposed a Commission Delegated Regulation to amend the dates of application of the Delegated Regulations (EU) 2017/2358 and (EU) 2017/2359; the proposed amendments to the delegated regulations are intended to align the application dates of these regulations with the application date of IDD. The proposed Directive shall enter into force on the day of its publication in the Official Journal of the European Union. The proposed Commission Delegated Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. Comments are due by February 16, 2018.
EC has proposed to push back the application date of the IDD by seven months to October 01, 2018. The European Parliament and 16 member states have requested this postponement. This is because it appears that some insurance distributors, especially smaller ones, are not yet fully ready for the new rules, despite the foreseen transposition period and the fact that the date of entry into application was well-known to stakeholders. The member states are still required to transpose IDD into national law by the original date, February 23, 2018. The IDD regulates the way insurance products are sold, including across borders. It sets out the information that consumers should receive before they sign an insurance contract, also imposing conduct of business and transparency rules on distributors. EC also adopted two Delegated Regulations—(EU) 2017/2358 and (EU) 2017/2359)—under the IDD in September 2017. These Delegated Regulations lay out the rules on product oversight and governance and on information requirements and conduct of business for the distribution of insurance-based investment products. EC has also proposed to postpone the application of two IDD Delegated Regulations, with the aim to align the date of application of the two amended Delegated Regulations to the new date of application of IDD. The European Parliament and the Council will need to agree on the new application date in an accelerated legislative procedure.
Related Link: Proposed Amendment
Comment Due Date: February 16, 2018
Keywords: Europe, EU, Insurance, IDD, Application Date, EC
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