The IDD came into force 23 February 2016 and will replace the Insurance Mediation Directive (IMD) and aims to enhance consumer protection when buying insurance and to support competition between insurance distributors by creating a level playing field.
As already advised the first consultation paper dealt with conduct requirements for general insurance businesses, training and competence requirements, complaints handling and out of court redress.
CP17/23 (Second Consultation) was issued on the 24th of July and is concerned with insurance distribution activities and apply to both life and GI sectors, proposals include the provision of information, including but not limited to the following:
- Firms general obligations
- Customer disclosure(s)
- Inducements – the existence of and terms
- Product suitability and appropriateness
It also covers changes to the rules about product oversight and governance and conflict of interest management. The proposals include a bolstering of the organisational requirements around client money and the professional standing and requirements of those engaged in the distribution of insurance products.
The FCA have stated that a third consultation is now also likely and will issued sometime in September. In the meanwhile this consultation again gives us all the opportunity to express our views on the proposals. The consultation period ends on the 20th October 2017 and full details of this consultation paper CP17/23 can be obtained from here.