Clifford Chance

MiFID II & IDD: The impact on insurance based investment ('IBI') products

20 June 2016

On 2 February 2016, the final text of the Insurance Distribution Directive ("IDD") was published in the Official Journal of the EU ("OJ"). The IDD entered into force on 22 February 2016 and Member States will need to comply with the new requirements by 23 February 2018.

The IDD introduces specific requirements for distributors of IBI products. These requirements, which are essentially changes driven by the Markets in Financial Instruments Directive II ("MiFID II"), oblige insurance distributors to act in the best interests of clients purchasing IBI products.

This briefing takes a closer look at Chapter VI of the IDD, which sets out the additional requirements, relevant where 'insurance distribution' is carried out in relation to the sale of IBI products by an 'insurance intermediary' or an 'insurance undertaking', as defined by the IDD.

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