COB TP5 Distance Marketing Directive transitional rules (applicable to all firms)

Delayed amendment of COB for non-distance contracts

1

COB

R

The amendments to COB made by the Distance Marketing Directive Instrument 2004 on 9 October 2004 do not apply in relation to business which does not involve the conclusion of a distance contract with a retail customer, provided that the firm complies with the requirements of COB in force immediately before 9 October 2004, taking account of any amendments which come into force after that date.

From 9 October 2004 for 12 months

Already in force

Exception for provision of key features to EEA customers

2

COB 6.2.21R(1)(a) and COB 6.2.24 (1)

R

(1)

There is no requirement for key features to be provided for a new life policy, variation to a life policy or in respect of a scheme if, at the time he signs the application, the customer:

From 9 October 2004, indefinitely

Already in force

(a)

(in the case of a life policy) is habitually resident in an EEA State other than the United Kingdom; or

(b)

(in the case of a scheme) is not present in the United Kingdom;

provided that the conditions in (2) are satisfied.

(2)

The conditions referred to in (1) are that:

(a)

the EEA State in which the private customer is (as applicable) habitually resident or present imposes requirements on the communication of precontract information (beyond the minimum required by Community legislation) when doing the designated investment business concerned from an establishment in the United Kingdom; and

(b)

the firm complies with COB 6.4.25, in respect of the packaged product, as if references to "accepting deposits" and "deposits" were references to "designated investment business" and "packaged products" respectively.

Non-investment insurance contracts: compliance with DMD Regulations or ICOB

3

R

When an insurereffects or carries out, or a firm manages the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's in relation to, a non-investment insurance contract which is a distance contract, then either:1

From 9 October 2004 until 14 January 2005

(1)

the Distance Marketing Regulations apply as if the insurer or firm was an unauthorised person; or1

(2)

(if the insurer has elected) the rules in ICOB which implement the DMD apply.

An election under (2) is irrevocable and applies in relation to all such contracts. The insurer must make a record of the election and retain it for 6 years from 14 January 2005.

In this transitional provision:

"ICOB" means the Insurance: Conduct of Business sourcebook; and

"non-investment insurance contract" means a contract of insurance which is a general insurance contract or a pure protection contract but which is not a long-term care insurance contract.

Delayed amendment of the Handbook for distance contracts1

41

Handbook1

R1

(1)1

The amendments to the Handbook made by the Distance Marketing Directive Instrument 2004 and the Distance Marketing (Amendment) Instrument 2004 do not apply to a firm unless it has elected to comply with them.1

From 9 October 2004 until 31 October 20041

Already in force1

(2)1

An election under (1) is irrevocable. The firm must make a record of the election and retain it for 6 years from 31 October 2004.1