Clifford Chance
How to distribute insurance products in the current regulatory environment
6 February 2013
2013 marked the culmination of the FSA's Retail Distribution Review ("RDR") in the UK with new rules significantly changing the way retail investment products are marketed and sold.
The key points are:
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New RDR rules in force ban payments of commission on advised sales of investment products; IMDII proposals include additional disclosure and suitability requirements across all distribution (both advised and non‐advised) of both protection and investment insurance products.
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Firms should have reviewed existing and future distribution arrangements in the context of RDR but should also consider the potential impact of IMDII.
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We consider the different distribution methods being adopted by firms and the key regulatory issues raised.
- We also review the potential impact of the European proposals across the UK, France, Germany, Italy and Spain.
