ICOBS 2.1 Client categorisation
Introduction
1Different provisions in this sourcebook may apply depending on the type of person with whom a firm is dealing:
- (1)
A policyholder includes anyone who, upon the occurrence of the contingency insured against, is entitled to make a claim directly to the insurance undertaking.
- (2)
Only a policyholder or a prospective policyholder who makes the arrangements preparatory to him concluding a contract of insurance (directly or through an agent) is a customer. In this sourcebook, customers are either consumers or commercial customers.
- (3)
A consumer is any natural person who is acting for purposes which are outside his trade or profession.
- (4)
A commercial customer is a customer who is not a consumer.
Customer to be treated as consumer when status uncertain
Customer covered in both a private and business capacity
- (1)
Except where paragraph (2) applies, if a customer is acting in the capacity of both a consumer and a commercial customer in relation to a particular contract of insurance, the customer is a commercial customer.
2 - (2)
For the purposes of ICOBS 5.1.4 G and ICOBS 8.1.2 R, if, in relation to a particular contract of insurance, the customer entered into it mainly for purposes unrelated to his trade or profession, the customer is a consumer.
2
Customer classification examples
In practice, private individuals may act in a number of capacities. The following table sets out a number of examples of how an individual acting in certain capacities should, in the FCA's view, be categorised.
Customer classification examples |
|
Capacity |
Classification |
Personal representatives, including executors, unless they are acting in a professional capacity, for example, a solicitor acting as executor. |
|
Private individuals acting in personal or other family circumstances, for example, as trustee of a family trust. |
|
Trustee of a trust such as a housing or NHS trust. |
|
Member of the governing body of a club or other unincorporated association such as a trade body and a student union. |
|
Pension trustee. |
|
Person taking out a policy covering property bought under a buy-to-let mortgage. |
|
Partner in a partnership when taking out insurance for purposes related to his profession. |
|