COBS 21.1 Application

1The rules in this section apply on an ongoing basis to linked long-term contracts that are effected by:

1. (1)

   insurers other than EEA insurers; and

2. (2)

   EEA insurers in the United Kingdom.

The rules in this section do not apply to:

1. (1)

   contracts that were effected before 1 July 1994, and under which linked benefits were permitted to be determined before that date;

2. (2)

   contracts effected by an insurer that are linked long-term contracts only because the policyholder is eligible to participate in any established surplus;

3. (3)

   contracts effected by an EEA insurer that are linked long-term contracts only because the policyholder is eligible to participate in an excess of assets representing the whole or a particular part of the long-term insurance fund over the liabilities, or a particular part of the liabilities, of the insurer as determined by the law of the EEA state in which the head office of the insurer is situated;

4. (4)

   contracts to manage the investments of pension funds that are not combined with contracts of insurance covering either conservation of capital or payment of a minimum interest, provided always that benefits under those contracts must not be determined wholly or partly by reference to the value of, or income from, or fluctuations in the value of, derivative contracts other than permitted derivatives contracts;

5. (5)

   contracts effected before 30 June 1995, to the extent that they provide for benefits to be determined by reference to a collective investment scheme that was a listed security immediately before 1 July 1994; and

6. (6)

   contracts linked to permitted units that were effected before 1 February 1992, except to the extent that they relate to acts or omissions on or after that date.