FCA publishes second Consultation Paper on IDD implementation

Following on from Consultation Paper (CP) 17/7, FCA has published CP 17/23 detailing further proposals on the implementation of the IDD in the UK. The CP is relevant to firms, including insurance and reinsurance companies, insurance intermediaries and firms categorised under the IDD as ancillary insurance intermediaries, as well as other stakeholders.

In order to implement the IDD, FCA is proposing to amend its rules:

  • on firms’ general obligations, information disclosure to customers, inducements, suitability and appropriateness in relation to life insurance businesses, including information requirements and additional requirements relating to the distribution of insurance-based investment products (IBIPs);
  •  on conflicts of interest, product oversight and governance, organisational requirements relating to the protection of customers’ money and professional requirements to the good repute of employees of insurance distributors in relation to life and non-investment insurance businesses, including product oversight and governance and professional and organisational requirement provisions;
  • relating to non-investment insurance business, including product information; and
  • concerning other parts of the Handbook.

FCA says that the proposed changes build upon the rules and guidance already in place and is consistent with the approach it took to implementing IMD.

The deadline for responses to the CP is 20 October 2017 and FCA intends to publish its findings in a Policy Statement in December 2017.

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