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