Latest news on IDD: EU Commission postpones the application of the implementing rules

On 20 December, the European Commission published a Proposal for a Directive aimed at postponing the application to the market of any national laws and regulations for the implementation of the Insurance Distribution Directive No. 2016/97 (the "IDD"), to 1 October 2018 instead of 23 February 2018.

This postponement also gives the Italian insurance regulator more time to better define and coordinate existing law and regulatory provisions with the forthcoming IDD implementing legislation.

On the same day, Commission Delegated Regulations (EU) 2017/2359 on information requirements and conduct rules for the distribution of insurance based investment products ("IBIP") and Commission Delegated Regulation (EU) 2017/2358 on product oversight and governance requirements ("POG") for insurance undertakings and insurance distributors both aimed at supplementing the IDD, were published in the EU Official Journal and they shall apply from 23 February 2018.

The first Delegated Regulation is aimed at enhancing protection of consumers ensuring a greater transparency of insurance products distribution governing the management of conflicts of interest, the acceptance of commissions and other third party payments and investment related advice.

The second Delegated Regulation lays down requirements for insurance players that manufacture insurance products in order to improve conduct of business rules on product oversight and governance, including product approval process, identification of target market and selection of the appropriate distribution channels. This Regulation is to be taken into account by insurance market players even before the entering into force of the IDD, as per the recent IVASS' recommendations issued on 4 September 2017 on the same argument.

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