On 1 March 2018, the European Parliament has formally approved a new time schedule.
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.
On 1 March 2018, the European Parliament has formally approved a new time schedule, of which the key dates are as follows:
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.
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.
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:
Our team of experts is available to support you in analysing particular business needs and to advise you on a specific implementation process.
This article is part of the Insurance Newsletter March 2018
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