FCA 2023/45: Insurance Distribution Directive Delegated Acts: Smarter Regulatory Framework Instrument 2023

The Financial Conduct Authority (FCA) has published a new legal instrument (FCA 2023/45) to transpose the regulatory changes noted in the FCA’s final policy statement (PS23/18) as regards the replacement (repeal) of four delegated acts under the Retained Insurance Distribution Directive (UK IDD) (please see EventID 24505 in this context for more detailed information).
Specifically, the instrument modifies the following parts of the FCA Handbook
– Senior Management Arrangements, Systems and Controls (SYSC)
– Conduct of Business Sourcebook (COBS)
– Insurance: Conduct of Business Sourcebook (ICOBS)
– Product Intervention and Product Governance Sourcebook (PROD)
– Glossary
to implement equivalent provisions with some minor changes to eliminate references to existing EU legislation and to make other non-material editorial changes.
The replaced (repealed) regulations set out provisions relating to the conduct requirements as regards the distribution of insurance-based investment products (assessment of suitability, avoidance of conflicts of interest, use of incentives), the insurance product information documents that must be provided to customers, the indemnity insurance and financial capacity requirements of insurers and intermediaries, and product governance requirements of both insurance manufacturers and distributors.
The instrument will come into force upon the Treasury’s repeal of the beforementioned delegated acts on April 5, 2024.