EU Parliament approves new time table for IDD | KPMG | BE

EU Parliament approves new time table for IDD

EU Parliament approves new time table for IDD

On 1 March 2018, the European Parliament has formally approved a new time schedule.

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EU Parliament approves new time table for IDD

Over the past few months, several actors voiced concerns that the initial deadline for transposition and implementation of the new EU Insurance Distribution Directive (IDD), which was originally set at 23 February 2018, was no longer realistic.

New time table

On 1 March 2018, the European Parliament has formally approved a new time schedule, of which the key dates are as follows:

  • By 1 July 2018, Member States shall ensure transposition of the EU IDD into national laws, regulations and administrative provisions;
  • At the latest on 1 October 2018, Member States will ensure application of the new legal framework implementing IDD.

Whereas the EU Parliament only voted on the delay of IDD on 1 March 2018 (i.e. after the initial deadline for IDD had already passed), the new revised time frame will apply with retro-active effect. The new time frame sets forth ultimate deadlines, which means that some Member States may already move ahead at a quicker pace. As far as Belgium is concerned, the IDD draft legislation is currently still in a preparatory phase and still needs to be introduced before the Belgian Parliament. Lastly, it is worth pointing out that the new time frame shall also apply in respect of the IDD delegated regulations.

IDD – what is it about?

The legal framework of IDD is aimed at strengthening consumer protection and harmonising the rules on distribution of insurance products by introducing a “MiFID-style” regime for the insurance sector. While the Belgian insurance sector has already become subject to AssurMiFID, the rules imposed by IDD will nevertheless add an additional layer of regulatory complexity, while at the same time tweaking some of the recently introduced AssurMiFID requirements.

How to prepare and how we can help

While some work is still ahead for the Belgian legislator over the coming weeks and months, it is clear that for insurance undertakings and intermediaries the time to act is now, whereby particular attention is likely to be needed in any or more of the following areas:

  • preparing and/or updating documentation;
  • reviewing internal policies and procedures (including on information collecting, client testing, conflicts of interest, inducements, reporting, diffusion of information, etc.);
  • putting in place product oversight and governance procedures;
  • continuing follow-up of the ongoing legislative process and staff training.

Our team of experts is available to support you in analysing particular business needs and to advise you on a specific implementation process. 

For further questions on this topic please contact Isabelle Blomme and Walter Jacob.

This article is part of the Insurance Newsletter March 2018

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© 2018 Kratos Law, a Belgian civ. CVBA/SCRL civ. All rights reserved. * Kratos Law civ. CVBA/SCRL civ. has entered into a cost association with KPMG Tax Advisers civ. CVBA/SCRL civ.

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