On 14 March 2018, the European Parliament and the Council of the European Union adopted Directive 2018/411 postponing the application of the Insurance Distribution Directive (‘IDD’) to 1 October 2018. Directive 2018/411 also extends to 1 July 2018 the deadline for member states to transpose the IDD into national laws.
The European Parliament held that the postponement from 23 February 2018 to 1 October 2018 for the coming into force of the IDD is to give insurance undertakings and insurance distributors more time to better prepare for a correct an effective implementation of the IDD. Directive 2018/411 also notes that a delay was required to ensure legal certainty and to avoid potential market disruptions.
Directive 2018/411 shall apply with retroactive effect from 23 February 2018
This document does not purport to give legal, financial or tax advice. Should you require further information or legal assistance, please do not hesitate to contact Dr. Edmond Zammit Laferla or Dr. Petra Attard