COB 6.1 Product disclosure4

COB 6.1 to COB 6.5 apply to a firm:

1. (1)

   which sells, personally recommends or arranges (brings about) for the sale of a packaged product (other than units in a simplified prospectus scheme)7 to a private customer or to the trustees of an occupational pension scheme or to the trustee or operator of a stakeholder pension scheme; or

2. (1A)

   7which is an operator of a simplified prospectus scheme or which sells, personally recommends or arranges (brings about) for the sale of units in such a scheme to a client, whether or not held within a PEP or an ISA; or

3. (2)

   which manages, sells or personally recommends a cash deposit ISA or cash deposit CTF for or to a private customer; or6

4. (3)

   which effects, personally recommends or arranges for a variation of a life policy for or to a private customer; or

5. (4)

   which effects, personally recommends or arranges income withdrawals or short-term annuities8 for a private customer; or

   8
6. (5)

   which is a long-term insurer and receives:

   1. (a)

      a request from a private customer for a quotation for the surrender value of a life policy; or

   2. (b)

      any other indication that a private customer wishes to surrender a life policy: or1

7. (6)

   which receives a request from a private customer for a retirement quotation in respect of any of the following contracts provided by it:

   1. (a)

      a personal pension scheme;

   2. (b)

      a stakeholder pension scheme;

   3. (c)

      a free-standing additional voluntary contribution contract;

   4. (d)

      (where an open-market option is available under the contract terms) a retirement annuity contract; or

   5. (e)

      (where an open-market option is available under the contract terms) a pension buy-out contract; or14

8. (7)

   which enters into a distance contract with a retail customer to accept deposits.43

4In COB 6.1 to COB 6.5, references to a private customer include, in relation to the conclusion of a distance contract, a retail customer.53

COB 6.2.46 R (UCITS Directive: requirement to offer a simplified prospectus for section 264 schemes) and COB 6.2.47 R (Sale of a section 264 scheme by distance contract) apply7 to a firm when it sells, personally recommends or arranges for the sale of a UCITS scheme which is a recognised scheme under section 264 of the Act (Schemes constituted in other EEA States) to a client.

1. (1)

   A product provider or stakeholder pension scheme operator must, for each packaged product which it offers produce key features which, as to design and content, comply with the requirements of COB 6.1, COB 6.2 and COB 6.5.

2. (2)

   A firm to which COB 6.4.13 (1) applies must, for each cash deposit ISA or cash deposit CTF it offers, produce the information document required by COB 6.5.42 R or COB 6.5.42A instead of key features. That information document must comply with COB 6.1, COB 6.2 and COB 6.5 as to design and content.46

3. (3)

   (1) does not apply in relation to a simplified prospectus scheme.7

A firm must ensure that any key features or information document it produces in relation to a packaged product, cash deposit ISA or cash deposit CTF is in writing, whether in printed hard copy or in electronic format, and:56

1. (1)

   is produced and presented to at least the same quality and standard as the associated sales or marketing material being used by the firm to promote the packaged product, cash deposit ISA or cash deposit CTF to customers; and6

2. (2)

   is separate from any other material given to the customer, unless it is produced for a key features scheme7, stakeholder pension scheme, or personal pension scheme other than a personal pension policy9; in that case it may be included as part of another item of sales or marketing material, but only if the key features or information document appears with due prominence.2

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