The following Financial Services guidance note provides comprehensive and up to date legal information covering:
The Financial Conduct Authority Handbook (FCA Handbook) includes sourcebooks to regulate the conduct of business by a regulated firm relevant to insurers: the Conduct of Business Sourcebook (COBS) and the Insurance Conduct of Business Sourcebook (ICOBS). This Practice Note considers how these sourcebooks apply to insurers.
COBS and ICOBS set out the 'conduct' aspects of how insurers and insurance intermediaries should operate their insurance business (from sales through to claims) and specifically how they should treat policyholders fairly.
COBS will apply to a firm if its activities consist of long-term insurance business in relation to life policies or designated investment business ('designated investment business'. ICOBS will apply to a firm in relation to its general insurance business and pure protection insurance business (also referred to as non-investment insurance).
Where an insurance product falls to be dealt with by both sourcebooks, general market practice is to apply the more stringent COBS rules to reduce the possibility of a regulatory breach.
When it was established by the Financial Services and Markets Act 2000 (FSMA 2000), the Financial Services Authority ((FSA), the predecessor to the Financial Conduct Authority (FCA)) and Prudential Regulation Authority (PRA) was given responsibility for regulating conduct of business relating to long-term insurance contracts in the Conduct of Business sourcebook (COBS), the FSA sourcebook for investment business. From
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234