The ECON committee of the European Parliament has called on the European Commission to delay the implementation of the Insurance Distribution Directive (IDD). Jon Sperrin, Head of Financial Services Regulatory for Grant Thornton UK LLP commented:
“We welcome this development and hope that the recommendation is carried through. A delay in implementation would be a proportionate and practical response.
“Market participants have significant concerns about the current timeframe, which requires implementation by 23 February 2018. Ultimately the IDD is designed to deliver enhanced outcomes for consumers and a level playing field across the market. An extension would give insurance firms and policymakers the time and certainty needed to get this right. And there is an awful lot of work that needs to be done.
“The fact that the EU is even contemplating delaying implementation reflects the genuine challenges many firms are facing. Of course the UK’s negotiations to exit the European Union introduce a further level of complexity that we are helping our clients to navigate.
“We are telling our clients to keep their foot on the pedal and expect some firms will particularly need to focus on implementing product governance requirements. This is certainly the case where insurers and distributors participate in long distribution chains. On top of that, firms need to ensure that their IDD work dovetails effectively with implementation of the Senior Managers and Certification Regimes (SMCR).”