The MFSA has issued new guidelines on Product Oversight and Governance arrangements by insurance undertakings and insurance distributors as required by the Insurance Distribution Directive ("IDD") to be implemented by manufacturers of insurance products.
During the preparatory period between 2017 and 22nd February 2018 (the latter date being the implementation date of the IDD), insurance undertakings and insurance distributors will be expected to implement the requirements of these Preparatory Guidelines in anticipation of the requirements which will be subsequently introduced under Level 2 measures to be adopted by the Commission under the IDD.
The MFSA has also announced that it shall be assessing insurance undertakings' and insurance distributors' preparedness in relation to the Product Oversight and Governance requirements as part of the transition to the IDD in the course of 2018 following its implementation. The MFSA noted that during its implementation review it will consult insurance undertakings or intermediaries which are not fully in line with the Preparatory Guidelines with a view to achieving reasonable remedial action.
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