Delay to IDD start date/Guidance on UK approach to Brexit

Delay to IDD start date

The EU Commission published draft legislation today (in the form of a proposed Directive and a proposed Delegated Regulation) to delay the IDD start date to 1 October 2018.  It has agreed to requests for a delay made by the European Parliament and a number of Member States despite expressing the view that industry has already been given considerable time to adapt to the new rules.  Individual states are still required to transpose the IDD into domestic regimes by 23 February 2018. The European Parliament and the Council will need to agree the new date in an accelerated legislative procedure.

Brexit – UK approach to incoming financial services firms

The Treasury, PRA and FCA have today set out proposals for dealing with EEA-headquartered financial services firms wishing to conduct regulated activities in the UK post-Brexit.  The concern, of course, is how those firms, including (re)insurers and (re)insurance intermediaries, can operate in the UK once they have lost passporting rights (assuming that they do so).

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Revised IDD text published

The revised text of the Insurance Distribution Directive (IDD) was published in July, following agreement by the EU institutions under the “trilogue” process.  The IDD will replace the current Insurance Mediation Directive (IMD), which lays down the regulatory framework for the distribution of insurance products within and across Member States.

Agreement of the latest text of the IDD, formerly known as IMD2, means that it is now possible to assess the changes with greater certainty – further changes can be expected to be minor or technical in nature.  Previously the European Parliament, the Council of the European Union and the European Commission have disagreed as to what would be included in IMD2/IDD.

Adoption of the IDD is likely to take place later this year, with member states having two years to implement the Directive into national law.  This would mean changes taking effect in the domestic laws of Member States by the second half of 2017.

Our briefing flags ten key topics covered by the IDD, with observations on the proposals from a UK perspective.