FCA finalises new rules to replace IDD

FCA has published its policy statement and final rules which will replace the IDD Delegated Regulations with rules and guidance in the FCA Handbook. The Regulations included:

  • the standardised IPID format;
  • product oversight and governance requirements; and
  • requirements relating to IBIPs.

Respondents to FCA’s consultation on the changes largely agreed with how it was planning to replicate the provisions with appropriate update, so it has made only a few clarificatory changes from its consultation. The changes will affect mainly:

  • SYSC 3, 9 and 10 – one respondent asked whether it was not confusing still to refer to the IDD in relevant Handbook notes but FCA will keep the references there as background information;
  • COBS 2.3A, 9A, 10A and 16A to replace where the relevant Delegated Regulation is currently replicated with actual rules;
  • ICOBS 6 Annex 3 in respect of the IPID; and
  • PROD 1.4 and 4 in respect of the POG Regulation.

The changes take effect on 5 April 2024, in line with Treasury’s timetable for repealing the relevant retained EU laws.

Emma Radmore