07.02.18 DELAYED TIMING for the IDD Directive in Belgium
We previously informed you that the European Commission and the European Parliament had proposed, at the end of 2017, to push back the timing of the Insurance Distribution Directive (IDD).
Following several meetings held by the Council’s Working Party on Financial Services and by the Parliament’s ECON Committee in January, the timing for IDD will – all being well – be as follows:
- Entry into force of IDD: the twentieth day after publication in the Official Journal of the European Union. As the IDD was published on 2 February 2016, the date of entry into force was 22 February 2016;
- Date of transposition: originally 23 February 2018, proposition to postpone until 1st July 2018;
- Date of application: originally also 23 February 2018, proposition to postpone until 1st October 2018.
Those dates are still subject to a final vote during the plenary session of the European Parliament which will take place on 28 February 2018, i.e. shortly after the original transposition and application dates.
It should be pointed out that the above mentioned dates are final dates, as the Council added the words “at the latest” to the implementation date of the IDD, allowing those Member States which are ready for implementation to do so earlier.
This can lead to some issues, as we see that Member States are not moving at the same speed in the transposition and implementation process. Insurance undertakings and insurance distributors operating in multiple Member States can potentially encounter some discrepancies until 1st October 2018.
As announced, the application of the two delegated regulations executing the IDD (laying down the rules applicable on product oversight and governance (IDD-POG), and on information requirements and conduct of business rules for the distribution of insurance-based investment products (IDD-IBIP)), that were normally applicable as from the same date as the IDD, will also be postponed.
What is the situation in Belgium?
Draft Acts are currently handled with the relevant Belgian Ministers and will be filed with the Belgian Parliament very soon, seeking a transposition into Belgian law by 1st July 2018. This also means that the application date for Belgium will most probably be at the latest 1st October 2018.
Separately from IDD, the Regulation on costs and charges already entered into force on 1st January 2018.
This regulation is a further execution of the previous implementation of the MiFID-rules of conduct on the insurance sector. Following this regulation, as part of the information duty of the service provider, information has to be provided to the client with respect to the costs and charges related to the insurance contract and to the provision of mediation services, and this before the conclusion of an insurance contract as well as at each annual renewal date.