Insurance Distribution Directive (IDD) – Implementation Delayed?

The European Commission has proposed a delay to the application date of the IDD to 1 October 2018. This proposal is currently under consideration by the European Parliament and European Council.

As part of this consideration, the EU has asked Home State governments for their view in a short consultation.

In order to provide certainty for industry, Her Majesty’s Treasury has announced that the government will delay transposing the IDD into UK law until the outcome of this proposal has been confirmed.

This may well be after 23 February 2018, the original application date of the directive.

If there is an early EU decision, there is a chance that the Treasury will be able to lay the new Regulated Activities Order, which in effect brings in the legislation in front of Parliament and so bringing the Directive to the statute books by the 23 February, but there is no certainty of that.

We have seen some parties claim that the IDD has been delayed, but this is not quite correct. It is still a proposal, but the Treasury announcement does make it seem likely that the IDD implementation will be delayed.

About the author

Terence has over 35 years' experience in the Financial Services environment, covering general insurance, investments and mortgages. Before joining RWA, Terence worked for a large PLC insurance brokerage in Manchester, overseeing some 20 acquisitions. He served as Compliance Director at RWA from 2011 to 2018 and has worked with insurance broking firms of all sizes across the UK. He has a particular interest in Financial Crime and the protecting the insurance broker. Terence previously served as Executive Chairman of the Association of Professional Compliance Consultants (APCC), the professional body for the compliance consultancy sector. He retired from RWA in 2019.

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