On Nov. 27, UK Treasury issued changes re insurance distribution dir.
UK Treasury issued Insurance Distribution (Regulated Activities and Miscellaneous Amendments) Regulations 2024 (StIn 2024/1239) and explanatory memo (PDF).
Regulations remove or amend references to insurance distribution directive (IDD Dir 2016/97), as they exist in UK statute book, but are no longer required.
As well as removing IDD related references across UK statute book, instrument will ensure clarity for UK insurance industry by not referring to IDD, as it is not relevant.
Failure to remove such references could cause confusion for UK insurance industry on firms' obligations where they are set out in both law and in the UK FCA Handbook.
UK Treasury confirms no policy change around how insurance distribution is regulated.
Specific Law Changes
When IDD transposed into UK laws in 2018, IDD text was copied into sched. 4 of Amendments to Financial Services and Markets Act 2000 (Regulated Activities) Order.
Specifically Order 2001, also known as RAO, and UK Treasury instrument deletes sched. 4 and makes changes across the RAO to account for certain provisions.
Such as the references or definitions still required to not impact current practice.
Instrument amends definitions of insurance distribution and reinsurance distribution in art. 4 (Specified Activities: General) and definition of insurance intermediary.
Also, definition of reinsurance intermediary in art. 33B (Provision of information: Contracts of Insurance) to account for the deletion of sched. 4, accordingly.
Definition and references to ancillary insurance intermediary have been deleted from art. 4 and art. 33B as they are a replication of existing legislation.
Instrument converts references from euro denominations in art. 72B to (£) sterling.
