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ICOB 3.1 Application: general

ICOB 3.1.1G
  1. (1)

    ICOB 3.2.1 R states that this chapter applies generally to firms in relation to all non-investment financial promotions. But, this wide application is cut back by ICOB 3.3(Application: what?) and ICOB 3.4(Application: where?) which limit the application of this chapter for:

    1. (a)

      non-investment financial promotions which fall within the scope of the exemptions in the Financial Promotion Order or the additional exemptions set out in ICOB 3.3.6 R; and

    2. (b)

      non-investment financial promotions to persons outside the United Kingdom.

  2. (2)

    ICOB 3.1.2 G contains a table summarising some of the exemptions in the Financial Promotion Order that are likely to be of particular interest to firms. A firm which communicates or approves only financial promotions that fall within an exemption need not concern itself with ICOB 3.

ICOB 3.1.2G

Financial Promotion Order exemptions.

This table belongs to ICOB 3.1.1 G (2). In this table references to 'relevant insurance activity' are to effecting and carrying out a non-investment insurance contract as principal.

Financial Promotion Order article no. and name of exemption

Summary of exemption

Article 17 (Generic promotions)

A non-investment financial promotion that does not identify (directly or indirectly) an insurer or any person as a person who carries on a controlled activity in relation to a non-investment insurance contract is exempt from ICOB. So an insurance intermediary advertising insurance mediation services is exempt from ICOB 3 providing the advertisement does not name an insurer. This is because the activities of the insurance intermediary do not constitute controlled activities.

For further guidance see PERG 8.12.14G to PERG 8.12.17G1.

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Article 24 (Relevant insurance activity: non-real time communications)

A non-investment financial promotion which contains the following information is exempt from ICOB 3:

(1) the full name of the insurance undertaking;

(2) the country or territory in which the insurance undertaking is incorporated (described as such);

(3) if different from (2), the country or territory in which the insurance undertaking's principal place of business is situated (described as such);

(4) whether or not the insurance undertaking is regulated in respect of its insurance business;

(5) if the insurance undertaking is regulated, the name of the regulator in its principal place of business or, if there is more than one regulator, the name of the prudential regulator;

(6) whether any transaction to which the non-investment financial promotion relates would be covered by a dispute resolution scheme or compensation scheme, if so identifying each such scheme.

Article 25 (Relevant insurance activity: non-real time communications: reinsurance and large risks)

A non-investment financial promotion which concerns only a reinsurance contract or a contract of large risks is exempt from ICOB 3.

Article 26 (Relevant insurance activity: real time communications)

ICOB 3 does not apply to a non-investment financial promotion which is communicated in the course of a personal visit, telephone conversation or other interactive dialogue. This does not include interactive dialogue by means of the exchange of letters or emails or in a publication. Such communication will be deemed to be non-real time and will be subject to ICOB 3, unless another exemption applies. For further guidance see PERG 8.10.2G1.

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ICOB 3.1.3G

A communication may contain both a non-investment financial promotion and one or more of a financial promotion and a qualifying credit promotion, for example, a leaflet from a firm which describes the range of insurance, savings and mortgage products it provides. In such cases,ICOB 3, COB 3 and MCOB 3 will all be relevant.