Intermediaries: the EU Directive on Insurance Distribution

In December 2002 the EU adopted European Parliament and Council Directive 2002/92/EC on insurance mediation, replacing an earlier recommendation to member states. The Directive laid down minimum standards for insurance intermediaries, thereby allowing the development of a single market for cross-border trade. The Directive was implemented in the UK by changes to the Financial Services and Markets Act 2000 and the underlying secondary legislation, in particular the Handbook issued by the Financial Conduct Authority.

In January 2016 the EU adopted a replacement Directive, European Parliament and Council Directive 2016/97 on insurance distribution (recast). The Directive makes a number of significant changes to the earlier regime. It is due to be implemented by member states by 23 February 2018, raising a fascinating question as to whether the UK’s Brexit plans will necessitate implementation in this jurisdiction.