FCA Consults on Implementation of Insurance Distribution Directive
FCA published the third consultation paper, CP17/33, on implementation of the Insurance Distribution Directive (IDD). This consultation follows on from CP17/7 and CP17/23 with further proposals on how FCA plans to implement the IDD in the UK. CP17/33 will interest firms (including insurance and reinsurance companies and insurance intermediaries), customers in the insurance market, and bodies representing these groups. It will also be of interest to designated professional bodies whose members conduct insurance distribution activities. Comments are requested by November 25, 2017 and the policy statement will be issued in January 2018.
The IDD replaces the Insurance Mediation Directive. It aims to enhance consumer protection when buying insurance—including general insurance, life insurance, and insurance-based investment products— and to support competition between insurance distributors by creating a level playing field. CP17/33 covers changes to FCA’s rules to reflect the requirements of the IDD delegated acts for:
- Life insurance distribution business: Inducement requirements for insurance-based investment products (IBIPs), suitability and appropriateness requirements for IBIPs, disclosure requirements for IBIPs and mandatory occupational pensions
- All insurance distribution business, including life and non-investment business: Conflicts of interest, product oversight and governance, changes to the Perimeter Guidance, regulatory processes, and additional changes (including consequential amendments) to other parts of the handbook
Related Link: CP17/33 (PDF)
Comment Due Date: November 25, 2017
Keywords: Europe, UK, Insurance, IDD, CP17/33, CP17/7, CP17/23, IBIP, FCA
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