What are the new CPD requirements in the context of IDD?
The European Insurance Distribution Directive (IDD) has a major impact on everyone who distributes insurance products. A great deal is changing for those who exercise a regulated function: the intermediaries, the effective managers, the PRDs (persons responsible for distribution) and the PCPs (persons in contact with the public): A new CPD system has applied since 1 January 2020.
More information about the postponement of regulatory deadlines as a result of the COVID-19 measures.
Find out more about the impact of the IDD on CPD for insurance below.
NEW CPD SYSTEM SINCE 1 JANUARY 2020
The new CPD system in insurance has been in operation since 1 January 2020.
Since then, in order to keep their status, all those involved (insurance brokers, agents, sub-agents and their EMs, PRDs and PCPs) are required to prove that they have taken 15 hours of CPD in insurance per year. There is an exception for ancillary insurance intermediaries (and their EMs/PRDs/PCPs) who are required to prove only 3 hours per year.
Except for the CPD of the PCP:
- a training point is awarded for every hour of training taken or proven
- CPD must be provided by training providers accredited by the FSMA
During the first three years following their registration or appointment, the responsible persons (insurance intermediary, EMs, PRDs) must devote a minimum of 12 of the 15 training points to the knowledge of the products that they distribute or which they supervise.
For the PCPs, it is the employer who is responsible for preparing and executing an annual global training plan, taking into account the scope and nature of its activity and that of its PCP.
The employer therefore does not have to ensure the individual following of the training, but it is recommended that attendance lists are kept up to date.
If more than 15 points are accumulated in a given year, the surplus may be carried forward to the following year (up to a maximum of 15 points, 3 for an ancillary insurance intermediary).
