Consultation outcome

Transposition of the Insurance Distribution Directive

This consultation has concluded

Download the full outcome

Detail of outcome

The government is grateful for all the responses received. The Insurance Distribution (Regulated Activities and Miscellaneous Amendments) Order 2018 will be laid in parliament in due course and come into force on 23 February 2018.

The European Commission (the Commission) has proposed to delay the application date of the Insurance Distribution Directive to 01 October 2018. This proposal is currently under consideration by the European Parliament and European Council. In order to provide certainty for industry, government will delay making the “The Insurance Distribution (Regulated Activities and Miscellaneous Amendments) Order 2018” until the outcome of this proposal has been confirmed. This is expected to be after 23 February 2018, the original application date of the directive.

When the Order comes into force, the Financial Conduct Authority (FCA) will be able to finalise their rules (which were published in near-final form on 19 January 2018). Firms will then be required to comply with those rules from whatever date is ultimately agreed as the application date of the directive. Under the current proposal from the Commission this date may be 1 October 2018. A further update will be provided following confirmation of the outcome of the EU’s legislative processes.

Original consultation

Summary

Seeking views on the government’s proposals for implementing the Insurance Distribution Directive (2016/97/EU).

This consultation ran from
to

Consultation description

The Insurance Distribution Directive (IDD) entered into force on 23 February 2016, and must be transposed into national law by 23 February 2018. On 23 June, the EU referendum took place and the people of the United Kingdom voted to leave the European Union. Until exit negotiations are concluded, the UK remains a full member of the European Union and all the rights and obligations of EU membership remain in force. During this period the Government will continue to negotiate, implement and apply EU legislation. The outcome of these negotiations will determine what arrangements apply in relation to EU legislation in future once the UK has left the EU. In line with this policy the government intends to transpose and implement IDD to schedule.

IDD replaces the Insurance Mediation Directive (IMD) which introduced specific minimum standards for the mediation of insurance contracts (principally brokering). IDD extends these minimum standards to cover the direct sale of insurance products by insurers, as well as seeking to more broadly improve consumer protection.

This consultation document sets out the government’s intended approach to transposing IDD into UK law, and views are invited on these proposals. As IDD is a minimum harmonising directive the government has the option of introducing additional provisions or bringing additional activities into the scope of regulation as appropriate for the UK market. Where the government has done this previously, this consultation invites comment from respondents on the appropriateness of continuing to do so.

The government also invites comments on proposed legislative changes to implement IDD and give effect to the government’s proposals.

Documents

Published 27 February 2017
Last updated 2 February 2018 + show all updates
  1. Updated outcome summary with details regarding the transposition of the Insurance Distribution Directive
  2. Updated with the response to the consultation and draft Statutory Instrument
  3. First published.