Changes to the DPB Handbook

Sep 06, 2018

Implementing the Insurance Distribution Directive

Legislative changes that implement the Insurance Distribution Directive (IDD) in the UK come into effect on 1 October 2018. The DPB Handbook has been updated to incorporate these changes and will be effective from 1 October 2018.

The IDD aims to ensure harmonisation of insurance regulation across the EU, creating a consistent regulatory framework to raise conduct standards and improve consumer protection. The IDD applies to insurers, insurance intermediaries, price comparison websites/aggregators and ancillary insurance intermediaries.

The full requirements of IDD place significant additional burden on FCA authorised firms. However Chartered Accountants Ireland, together with, ICAEW and ICAS, has chosen to implement the IDD via the ancillary insurance intermediary (AII) route. This means that our DPB licensed firms may only act as ancillary insurance intermediaries as defined within the legislation. This approach minimises the additional burden of regulation and reflects the nature of the insurance distribution activities carried out by our DPB licensed firms.

The DPB Regime allows an activity to be complementary or to arise out of a professional service. Firms need to be aware that the scope for acting as an ancillary insurance intermediary under the IDD is narrower and only permits the distribution of complementary insurance products whose cover complements the good or service. It will enable DPB licensed firms to continue to offer common products such as tax fee protection insurance, but will prevent them from engaging in any regulated activities relating to insurance based investment products (IBIPs) and products relating to large risks from 1 October 2018.

The majority of the changes to the handbook only apply to firms which provide insurance distribution activities. However, some of the changes needed to implement the IDD will have implications for all DPB licensed firms. This is all discussed in more detail below.
Revised DPB Handbook - effective date 1 October 2018
Changes that impact all DPB licensed firms
Further changes relevant to DPB licensed firms that distribute insurance
Schedule of Amendments