The Insurance Distribution Directive (IDD)

In a recent vote at the EU, it was agreed that the IDD implementation dates be amended.

So, while the intention was to effect the changes from 23 February 2018, the timetable is now as follows.

1 July 2018 - Member States shall adopt and publish the laws, regulations and administrative provisions necessary to comply with this Directive

1 October 2018 – The Insurance Mediation Directive is repealed and replaced with the IDD. So, 1 October is the final date by which all insurance brokers and insurers must have implemented all the changes.

It is now for HM Treasury to lay a new Regulated Activities Order before Parliament to enact the new legislation.

For those interested, the voting figures were:

  • For – 543
  • Against – 27
  • Abstentions – 53

More details can be seen at:

The FCA will now issue 'final rules' to fully enable all parties to implement changes.

The three Policy Statements issued previously included 'near-final rules'. It is not anticipated that there will be any significant changes to the proposed rules.

Firms can now proceed with certainty and plan changes accordingly.

As we have said before, many changes are not too onerous and you could implement the majority now, such as mandatory CPD, in readiness for 1 October.

About the author

Terence is the Compliance Director at RWA. He 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 was made a Director of RWA in 2011 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 is also Executive Chairman of the Association of Professional Compliance Consultants (APCC), the professional body for the compliance consultancy sector.

Terence Clark

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