Insurance conduct of business—advice and product information requirements

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Insurance conduct of business—advice and product information requirements
  • Implementation of the Insurance: Conduct of Business Sourcebook (ICOBS)
  • Identifying client needs and advising
  • Product information
  • Responsibilities of insurers and insurance intermediaries in relation to product information
  • Informed decision making
  • The Insurance Product Information Document
  • Requirements relating to general insurance contracts
  • Product specific requirements for payment protection contracts and/or pure protection contracts
  • Failure to comply with information requirements

Insurance conduct of business—advice and product information requirements

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

Implementation of the Insurance: Conduct of Business Sourcebook (ICOBS)

On 6 January 2008, the Financial Conduct Authority's (FCA) predecessor, the Financial Services Authority (FSA) brought into force the Insurance: Conduct of Business Sourcebook (ICOBS), which replaced the existing Insurance: Conduct of Business Sourcebook (ICOB). The principal change introduced by ICOBS was to move away from a prescriptive rule-based way of supervising firms to more principles-based or outcome-focused methodology. This meant that pre-existing rules in ICOB were simplified where the FSA felt that specific customer protection was not required.

Although the rules in ICOBS are of a higher level that those previously contained in ICOB (therefore resulting in more flexibility in the way that insurance firms can satisfy their requirements), the FSA made it clear in a press release on 18 December 2007 that it would require the same standards of conduct as were more expressly required

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