FCA consults on IDD replacement rules
The FCA is asking for feedback on its proposals for transferring part of the current regulatory requirements on insurance firms from existing legislation into its own rules.
When the UK fully implemented the Insurance Distribution Directive (IDD) in 2018, this was mostly accomplished through changes to the FCA’s rules, but some of the requirements were contained in EU delegated regulations which remained directly applicable at the time and were part of retained EU law (REUL) following the UK’s exit from the European Union.
The regulator is now seeking to bring all remaining retained EU law into the FCA Handbook, to ensure that existing regulatory requirements are maintained.
The Treasury plans to repeal Insurance Distribution Directive (IDD) delegated acts and intends to have these included in the FCA Handbook - hence the current consultation on FCA sourcebooks to replace the provisions of the EU law. The FCA has said its proposals should be read alongside the Treasury’s draft statutory instruments.
All firms involved in insurance activities have been invited to respond by 9 October 2023. Once the consultation has ended, the FCA has said it will consider the feedback before publishing its final rules in line with the Government’s timetable for repealing the legislation.