The Financial Conduct Authority (FCA) has published the final rules that transfer and replace retained European Union law (REUL) provisions from the Insurance Distribution Directive (IDD).
In its announcement, the FCA said: “We are replacing the IDD delegated regulations with rules and guidance. Our changes to the sourcebooks will replace the provisions of the REUL which is being repealed. This will provide continuity of the regulatory regime which applies to insurance-related activities.”
Taking effect on April 5, 2024, the rule changes are outlined in this FCA policy statement.
In its policy statement, the regulator explained: “In September 2023 in CP23/19, we consulted on changes to various sourcebooks needed to maintain requirements which currently apply to firms, whether directly under the IDD delegated acts or where we apply them through rules and guidance, once the relevant part of REUL is repealed.
“We intend to provide continuity of the regulatory regime applying to insurance-related activities. As such, the amendments to the rules and guidance are not intended to change the regulatory requirements on firms.”
According to the FCA, the consultation respondents broadly agreed with the changes that were put forward in September.
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