IDD Update- Delay of Implementation and Application Date

Executive summary: COREPER approved today compromise text delaying the IDD (levels 1 and 2) implementation and application dates – EP vote expected to take place on 1^st March

As you know, the final compromise text to delay the implementation of the IDD (levels 1 and 2) till 1^st July 2018 and its application (levels 1 and 2) till 1^st October 2018 is to be soon adopted and signed by the European Parliament and the Council.

The compromise text also states that “in order to ensure legal certainty and avoid potential market disruption, it is necessary that this Directive enters into force as a matter of urgency and that it applies, with retroactive effect, from 23 February 2018”. This date is the current implementation and application date of the IDD. Copy of the compromise text is attached to this mail.

At Council Level

Today the COREPER (The permanent Representative Committee of the Council) approved, on behalf of the Council, the compromise text (see attached press release).  It also confirmed that the Council presidency indicated to the European Parliament that, should the EP adopt the compromise text at first reading , the Council would approve the EP ‘s position and the compromise text shall be adopted as adopted by the EP.

At EP Level

On 1^st March the EP is expected to vote and to adopt in plenary the compromise text as approved by the COREPER.   

The text is expected to be officially signed by the EP and the Council by mid-March (maybe on 15 March) and to be  published in the Official Journal shortly after. It will enter into force on the day of its publication in the OJ of the EU. As explained above, it will apply with retroactive effect, from 23 February 2018. This retroactivity clause is crucial as it will obviate legal uncertainty.

We will keep you informed on the EP vote.

Yours faithfully,