On 19 October 2017, the Dutch Minister of Finance published a first draft of the Decree implementing Directive (EU) 2016/97 on insurance distribution (the IDD) (Besluit implementatie richtlijn verzekeringsdistributie, the Implementation Decree) for consultation.
The Implementation Decree, together with the Act implementing the IDD (Wet implemenatie richtlijn verzekeringsdistributie), will amend the Decree on Conduct of Business Supervision of Financial Undertakings (Besluit Gedragstoezicht financiële ondernemingen), the Decree on Prudential Rules for Financial Undertakings (Besluit prudentiële regels Wft), the Decree Administrative Fines Financial Sector (besluit bestuurlijke boetes financiële sector), the Decree Implementation EU-regulations Financial Markets (Besluit uitvoering EU-verordeningen financiële markten) and the Decree Implementation Pension Act and Occupational Pension Scheme Obligatory Membership (Besluit uitvoering Pensioenwet en Wet verplichte beroepspensioenregeling).
The IDD replaces Directive 2002/92/EC on insurance mediation (the Insurance Mediation Directive) and aims to provide for a level playing field for all market participants involved in the sale of insurance contracts, improve the protection of consumers and enhance the single market for financial services. The IDD applies to insurers, insurance intermediaries and parties that sell insurance contracts in addition to the sale of goods or the provision of other services.
Several of the provisions of the IDD have been gold-plated in the Implementation Decree. Examples are a ban on offering or accepting provisions on insurance contracts with an investment component, individual disability insurance contracts, life insurance contracts and funeral insurance contacts and (ii) expansion of the scope of the persons who are required to meet the competency requirements and comply with obligations for continuing professional development set out in Annex I to the IDD. Pursuant to the Implementation Decree, the requirements and obligations set out in Annex I to the IDD will apply to the managers (feitelijk leidinggevende) of parties providing financial services in relation to insurances.
The consultation ends on 17 November 2017.
View the Implementation Decree (Dutch only), 19 October 2017.