The European commission has proposed a delay to the application date of the Insurance Distribution Directive (IDD). The new proposed implementation date for the IDD is the 1st October 2018. This proposal is currently under consideration by the European Parliament and European Council.
This comes as a result of the commission advising that the application date should be pushed back to ensure all insurers have sufficient time to implement the directive.
To provide certainty to the industry, Her Majesty’s Treasury has announced that the UK government will delay the transposing of the Insurance Distribution Directive into UK law until the outcome of the proposal has been confirmed. The confirmation of this proposal is expected to be after the original application date of the directive, 23rd February 2018.
The FCA have produced their rules in near-final form, (see PS18/1 released on the 19th January 2018). The regulator do not foresee making any changes to these near-final rules, but will wait for the Insurance Distribution Directive to be transposed into UK law before publishing the final rules.
Once the Insurance Distribution Directive has been transposed into law and the final rules have been published all affected firms will be required to comply with the directive by the new application date agreed at European level. As mentioned earlier if the current proposal is accepted this date will be the 1st October 2018.
This might seem as though firms have been given plenty of time to prepared, however we all know how quickly that date late in the year can come around. Also the increased preparation time for firms often means that the regulator expects firms to be compliant with the directive from the start. Do not make the mistake of leaving your preparations till the last minute or putting any existing plans on hold. Take this opportunity to make sure you are fully aware of the implications that this directive could have on your business and that you are prepared to meet the regulators expectations.
Why not join us at our upcoming half day workshop Insurance Distribution Directive (IDD) – An overview? This is a perfect opportunity to ensure you are fully aware of the potential impacts to your business whilst enabling you to gain an expert insight to ensure your current preparations are on track before the pressure starts to build around this topic later in the year. Secure your place on the public open course today or contact a member of the team to discuss having this training delivered in house for a number of your staff.