The following Financial Services guidance note provides comprehensive and up to date legal information covering:
This Practice Note explains the rules for the cancellation of client agreements. The rules, which are contained in chapter 15 of the Financial Conduct Authority's (FCA) Conduct of Business sourcebook (COBS 15) are relevant for:
most firms who provide retail financial products based on 'designated investments' (as defined in the glossary to FCA Handbook), and
firms who have distance contracts with consumers for 'designated investment business' (as defined in the glossary to FCA Handbook) or as part of the activity of issuing electronic money
COBS 15 implements Article 6 of Directive 2002/65/EC (the Distance Marketing Directive) and Article 186 of Directive 2009/138/EC (the Solvency II Directive).
The following contracts can be cancelled by consumers within the time limits indicated:
Where one transaction gives a consumer more than one right to cancel, firms need to give them the longest cancellation period applicable
Firms can give consumers longer or additional rights, but these rights need to be at least as favourable to the consumer.
Cancellation time limits begin either:
from the day contacts are concluded (except for life policy contracts, where the time limit begins from the time when consumers are informed contracts are sealed), or
from the day consumers receive the contractual terms and conditions and any other pre-contractual information required under COBS or the Packaged Retail and
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