IDD Delegated Regulation: Insurance Distribution ESG
This Regulation aims to integrate sustainability factors, risks and preferences into the product oversight and governance requirements for insurance undertakings and insurance distributors, and into the conduct of business rules and investment advice rules for insurance-based investment products. It amends Delegated Regulations (EU) 2017/2358 and (EU) 2017/2359 so that insurance undertakings and distributors take customers' sustainability-related objectives into account when designing, manufacturing and distributing insurance products, prevent greenwashing and mis-selling, and strengthen investor protection standards.
Timeline
- 16 Aug 2021Entry into force
- 2 Aug 2022Full application date
Key facts
- Reference
- Regulation (EU) 2021/1257
- Adopted
- 21 Apr 2021
- Published
- 27 Jul 2021
- Status
- In force
- Topic
- Sustainable Finance
- Industries
- Financial Services
Main compliance requirements
Paid members only
The main compliance requirements, applicability questions and penalties are available in the ZC Smart Compliance Hub. Paid members and clients can sign in to the Hub to view them.
Related legislation
- Amends Delegated Regulation (EU) 2017/2358 (on product oversight and governance requirements for insurance undertakings and insurance distributors) and Delegated Regulation (EU) 2017/2359 (on information requirements and conduct of business rules for insurance-based investment products). Builds on the 2016 Insurance Distribution Directive (EU) 2016/97, the Sustainable Finance Disclosure Regulation (EU) 2019/2088 and the Taxonomy Regulation (EU) 2020/852.
Official sources
Commission Delegated Regulation (EU) 2021/1257 amending Delegated Regulations (EU) 2017/2358 and (EU) 2017/2359 as regards the integration of sustainability factors, risks and preferences into the product oversight and governance requirements for insurance undertakings and insurance distributors