On 19 December 2018, a draft version of the Insurance Distribution (Amendment) (EU Exit) Regulations 2019 was laid before Parliament and published, together with a related draft explanatory memorandum.
The Regulations address deficiencies in retained EU law relating to the Insurance Distribution Directive (IDD) that arise from the UK leaving the EU. The IDD will not be retained EU law as it is a directive that has already been implemented in the UK through domestic legislation and Financial Conduct Authority rules.
The Regulations fix deficiencies in two Commission Delegated Regulations made under the IDD, namely: Commission Delegated Regulation (EU) 2017/2358 and Commission Delegated Regulation (EU) 2017/2359. They also transfer functions contained within the IDD from EU entities to appropriate UK bodies, replace cross references to EU legislation with the relevant UK measures which implemented those provisions, and remove other EU references which are no longer appropriate. These deficiencies are outlined in section 7 of the explanatory memorandum.
The Regulations will enter into force on exit day.
