Application of the FCA's COBS 4 rules to insurance
Application of the FCA's COBS 4 rules to insurance

The following Insurance & Reinsurance practice note provides comprehensive and up to date legal information covering:

  • Application of the FCA's COBS 4 rules to insurance
  • What types of insurance do the rules in COBS 4 apply to?
  • Financial promotions for an overseas long-term insurer

FCA's Insurance Conduct of Business Sourcebook (ICOBS) contains the standards that apply to all non-investment insurance product sales (general insurance and protection policies). The COBS provisions apply to designated investment business, which is described in more detail below, the majority of which is outside the scope of this Practice Note but which includes certain life and long term insurance policies. Those communicating promotions relating to insurance policies must correctly classify the policy in question, to ensure they comply with the right conduct of business requirements. This note does not address the ICOBS requirements. It is also important that firms communicating or approving a communication or financial promotion know the intended recipient(s) of the communication, to enable them to tailor the communication accordingly and comply with the relevant rules in the relevant sourcebook.

What types of insurance do the rules in COBS 4 apply to?

COBS 4 applies to firms that communicate with clients or potential clients in relation to designated investment business. The designated investment in this context is a life policy. In principle, this relates to long-term insurance contracts (other than a reinsurance contract and a pure protection contract), including life and annuity contracts, linked long-term insurance and permanent health insurance. It also applies to pension policies.

For the purposes of COBS 4, a life policy does not include a long-term care insurance contract. All

Popular documents