The provisions of the Insurance Distribution Directive (IDD) were implemented in the UK in 2018 through changes to the rules in the FCA Handbook. Supplemental requirements were contained in various delegated regulations (the IDD delegated regulations) which were onshored and became retained EU law. As part of HM Treasury’s Smarter Regulatory Framework, it plans to repeal the IDD delegated regulations once the requirements in each regulation have been transferred to the FCA Handbook. On 5 September 2023, the Financial Conduct Authority (FCA) published a consultation paper (CP 23/19) which provides a table setting out the destination of each provision in the regulations to within the FCA Handbook (summarised below).
The FCA intends to maintain the continuity of the IDD regulatory regime and has made no substantive changes to the rules, making only minor consequential or ‘house-style’ drafting changes. The consultation closes on 9 October 2023.
Delegated regulation
Destination in FCA Handbook
Commission Implementing Regulation (EU) 2017/1469 laying down a standardised presentation format for the insurance product information document ('IPID Regulation')
ICOBS 6 Annex 3
Commission Delegated Regulation (EU) 2017/2358 with regard to product oversight and governance requirements for insurance undertakings and insurance distributors ('IDD POG Regulation')
PROD 1 and PROD 4
Commission Delegated Regulation (EU) 2017/2359 with regard to information requirements and conduct of business rules applicable to the distribution of insurance–based investment products ('IDD IBIPs Regulation')
COBS 2
SYSC 3
SYSC 10
COBS 9A
COBS 10A
Commission delegated regulation (EU) 2019/1935 amending Directive (EU) 2016/97 with regard to regulatory technical standards adapting the base euro amounts for professional indemnity insurance and for financial capacity of insurance and reinsurance intermediaries ('IDD PII Regulation')
Not transferred – substantive provisions already appear in parts of MIPRU and IPRU-INV
The FCA acknowledges that concerns have been raised about the application of some of the rules to business in the London market and this may be an area for future review by the FCA. In addition, the FCA has said that as it reviews the rules deriving from the Markets in Financial Instruments Directive it will consider how the rules for IBIPs should operate for what may be seen as substitutable products.
Following the publication in January 2022 of its first report on the application of the IDD, the European Insurance and Occupational Pensions Authority (EIOPA) is carrying out further analysis on the application of the IDD with the intention of publishing a second report in early 2024.
Authored by Kirsten Barber.
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