ICOB 1.2 General application: who? what?

1. (1)

   Except as provided for in ICOB 1.2.8 R to ICOB 1.2.15 R, ICOB applies to:4

   4
   1. (a)

      an insurance intermediary, including an insurer, when it carries on insurance mediation activities for a customer in relation to a non-investment insurance contract or enters into a distance non-investment mediation contract with a retail customer;4

   2. (b)

      an insurer when acting as product provider in relation to a non-investment insurance contract;4

   3. (c)

      a firm when it manages the underwriting capacity of a Lloyd's syndicate as a managing agent at Lloyd's, in relation to a non-investment insurance contract;4

   4. (d)

      a firm which communicates or approves a non-investment financial promotion;4

   5. (e)

      a motor vehicle liability insurer; and4

   6. (f)

      the Society in relation to motor vehicle liability insurance business.4

2. (2)

   Where a firm (or its appointed representative) ("A")7 has outsourced insurance mediation activities to a third party processor, any rule in ICOB which requires the third party processor, when acting as such, to disclose its identity to a customer must be read as applying to the third party processor only to the extent that it applies to A and as7 requiring disclosure of the identity of A7.4

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1. (1)

   In the case of a non-investment insurance contract that is underwritten at Lloyd's by its members, the firm responsible for the management of the insurance business of the member (that is, the managing agent) discharges the obligations of the product provider, which would otherwise be discharged by an insurer. References to managing agents in ICOB therefore relate to their functions in managing the obligations of the member as product provider.

2. (2)

   Where there is a chain of insurance intermediaries between the insurer and the customer, ICOB applies only to the insurance intermediary in contact with the customer.

If it is not clear in a particular case whether a customer is a retail customer or a commercial customer, an insurance intermediary or an insurer, in relation to a non-investment insurance contract or a distance non-investment mediation contract, must comply with ICOB as if the customer were a retail customer.

2If an insurance intermediary or an insurer is dealing with a customer who is an individual in relation to a non-investment insurance contract or a distance non-investment mediation contract which would cover him in both a private and business capacity, the insurance intermediary or an insurer must comply with ICOB as if the customer were a retail customer.

Where an insurance intermediary carries on insurance mediation activities for commercial customers in relation to contracts of large risks where the risk is located within the European Economic Area, the only provisions of ICOB that apply are:

1. (1)

   ICOB 5.4.5 R (Provision of a policy document to commercial customers); and2

2. (2)

   ICOB 5.4.8 R and ICOB 5.4.9 G (Group policies sold to commercial customers)2

ICOB does not apply to an authorised professional firm with respect to its non-mainstream regulated activities except for:

1. (1)

   ICOB 2.2.3 R to ICOB 2.2.7 G (Clear, fair and not misleading communication);

2. (2)

   ICOB 3 (Financial promotion);

3. (3)

   ICOB 4.2.2 R in relation to the information for customers in table ICOB 4.2.8 R items numbered (8), (9) and note 4 covering complaints and compensation; and

4. (4)

   those sections in ICOB which implement articles 12 and 13 of the IMD, unless:

   1. (a)

      the designated professional body of the firm has made rules which implement some or all of the provisions of 1articles 12 and 13 of the IMD;

   2. (b)

      those rules have been approved by the FSA under section 332(5) of the Act; and

   3. (c)

      the firm is subject to the rules in the form in which they were approved.

   in which case those sections of ICOB which implement articles 12 and 13 of the IMD are disapplied to the extent that these articles are implemented by the rules of the designated professional body.1

ICOB does not apply to a service company, except for:

1. (1)

   ICOB 1.4 (Application in respect of electronic commerce activities and communications);

2. (2)

   ICOB 3 (Financial promotion); and

3. (3)

   any provision of ICOB incorporated into (1) or (2) by reference.

ICOB does not apply if the activities within ICOB 1.2.1 R relate to a reinsurance contract.

ICOB does not apply to the mediation of contracts of large risks where the risk is located outside the European Economic Area.

1. (1)

   If a non-investment insurance contract is a group policy, ICOB (except for ICOB 2 (General rules) and7ICOB 7 (Claims handling)) does not apply with respect to a person under such a policy who is not the legal holder of the policy, subject to (2).

2. (2)

   If a firm makes a personal recommendation that a person becomes a policyholder member of a group policy, ICOB 4.3 and ICOB 4.4 apply to that personal recommendation as if the contract were being concluded.

1. (1)

   6ICOB does not apply to the extent that:

   1. (a)

      the activities within ICOB 1.2.1 R relate to a pension term assurance policy; and

   2. (b)

      the firm has elected to comply with COB;

   but the firm must then comply with the rest of the Handbook treating the pension term assurance policy as a life policy and a designated investment, and not as a non-investment insurance contract.

2. (2)

   A firm must make a record in a durable medium of the election (and any reversal of or amendment to the election) which includes:

   1. (a)

      the date from which the election takes effect; and

   2. (b)

      a precise description of the part of the firm's business to which the election applies;

   and must retain that record indefinitely.