COBS 20.1 Application

1This chapter applies to a firm carrying on with-profits business, except to the extent modified in the following rules.

1. (1)

   The section on the process for reattribution (COBS 20.2.42 R to COBS 20.2.52 G):

   1. (a)

      applies to a firm that is proposing to make a reattribution of its inherited estate;

   2. (b)

      but not if, and to the extent that, it would require the firm to breach, or would prevent the firm from complying with, an order made by a court of competent jurisdiction.

2. (2)

   If a firm proposes to seek an order from a court of competent jurisdiction that would allow or require it to act in a way that is contrary to the rules on reattribution (COBS 20.2.42 R to COBS 20.2.52 G) (through, or because of, the exception in (1)(b)), the firm must:

   1. (a)

      tell the FSA that that is what it proposes to do;

   2. (b)

      seek the order at the earliest opportunity; and

   3. (c)

      if it wishes to take a step that would be contrary to those rules in anticipation of such an order, secure a waiver before it does so.

For an EEA insurer:

1. (1)

   the rules and guidance on treating with-profits policyholders fairly (COBS 20.2.1 G to COBS 20.2.41 G and COBS 20.2.53 R to COBS 20.2.60 G) apply only in so far as responsibility for the matter in question has not been reserved to the firm's Home State regulator by an EU2 instrument;

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2. (2)

   COBS 20.3 (Principles and Practices of Financial Management) does not apply;

3. (3)

   the rule on providing information to with-profits policyholders who are habitually resident in the United Kingdom (COBS 20.4.4 R) and the rule on production and provision of a CFPPFM (COBS 20.4.5 R) apply, but the rest of COBS 20.4 (Communications with with-profits policyholders) does not; and

4. (4)

   the rule on production and provision of a CFPPFM (COBS 20.4.5 R) applies as if a reference to a firm was a reference to an EEA insurer in relation to any of its with-profits policyholders who are habitually resident in the United Kingdom.

The following do not apply to a non-directive friendly society:

1. (1)

   COBS 20.3 (Principles and Practices of Financial Management);

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2. (2)

   COBS 20.4 (Communications with with-profits policyholders); and3

3. (3)

   COBS 20.5 (With-profits governance).3

This chapter does not apply to with-profits business that consists of effecting or carrying out Holloway sickness policies.