The Insurance Distribution Directive (IDD) introduces a pan-European regime that harmonises regulation of insurance distribution activities across the single market, to improve consumer protection standards and promote a single market for insurance sales. While these obligations are not entirely new to UK firms, the IDD is much more prescriptive.

The IDD will bring a number of organisational changes for wealth managers or IFAs to consider an insurance intermediary. The Journal of the Chartered Institute for Securities & Investment ‘The Review’ spoke to our insurance expert, Umar Mohamad, about the main implications for IFAs and wealth managers.

“There are overarching best-practice requirements that insurance intermediaries should abide by, including pre-contract disclosures, managing and disclosing conflicts of interest, demands and needs and a general obligation to meet the customer’s best interests.”

The article covers the top organisational changes to consider as an insurance intermediary, including:

  • new knowledge and ability requirements
  • recording keeping needed
  • professional indemnity insurance (PII) review
  • client monies rules
  • complaints handling process
  • conduct of business requirements
  • rules that affect the Insurance Product Information Document
  • rules which affect product governance

The article covers all you need to know about what the IDD will mean to you – from record keeping through to best practices requirements. Find out more in the original article.

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