Along with an explanatory memorandum and a transposition table, the Insurance Distribution (Regulated Activities and Miscellaneous Amendments) Order 2018 (IDO) was published on 1 May 2018.
The IDO makes amendments to some of the key financial services legislation – including the Financial Services and Markets Act 2000 (FSMA) and the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (FSMA RAO) – in order to implement the Insurance Distribution Directive (IDD). These amendments include:
- Introducing a new article 33B of the FSMA RAO, setting out an exclusion from the article 25 regulated activities (arranging deals in investments). This exclusion relates to the provision of specified information where no other steps are taken by the insurance intermediary to conclude the contract.
- Revising the criteria for the exclusion for connected contracts of insurance in article 72B of the FSMA RAO.
- Amending section 137R of FSMA to allow the FCA to make financial promotion rules in accordance with Article 17 of the IDD (which contains general principles on marketing communications).
- Inserting a new Part 13A of FSMA, and amending Part 13, to allow an appropriate regulator to exercise its powers of intervention in relation to EEA firms passporting into the UK under the IDD and to allow for enhanced supervision under Article 7 of the IDD.
- Amending Part 26 of FSMA to require the publication of information relating to sanctions imposed in accordance with the IDD.
- Amending Schedule 3 of FSMA and the Financial Services and Markets Act 2000 (EEA Passport Rights) Regulations 2001 to make provisions concerning passporting under the IDD by UK and EEA firms.
The IDO will come into force on 1 October 2018 (save the provisions which enable the FCA to make financial promotion rules which will come into force on 23 May 2018).