ICOBS 4.1 General requirements for insurance intermediaries

1This section applies to an insurance intermediary.

Prior to the conclusion of an initial contract of insurance and, if necessary, on its amendment or renewal, a firm must provide the customer with at least:

1. (1)

   its name and address;

2. (2)

   the fact that it is included in the FSA Register and the means for verifying this;

3. (3)

   whether it has a direct or indirect holding representing more than 10% of the voting rights or capital in a given insurance undertaking (that is not a pure reinsurer);

4. (4)

   whether a given insurance undertaking (that is not a pure reinsurer) or its parent undertaking has a direct or indirect holding representing more than 10% of the voting rights or capital in the firm; and

5. (5)

   the procedures allowing customers and other interested parties to register complaints about the firm with the firm and the Financial Ombudsman Service or, if the Financial Ombudsman Service does not apply, information about the out-of-court complaint and redress procedures available for the settlement of disputes between the firm and its customers.

A firm whose contact with a customer is limited to effecting introductions (see PERG 5.6) need only provide its name and address and whether it is a member of the same group as the firm to which it makes the introduction.

In relation to a connected travel insurance contract, a firm need only provide the procedures allowing customers and other interested parties to register complaints about the firm with the firm and the Financial Ombudsman Service or, if the Financial Ombudsman Service does not apply, information about the out-of-court complaint and redress procedures available for the settlement of disputes between the firm and its customers.2

1. (1)

   Prior to the conclusion of an initial contract of insurance (other than a connected travel insurance contract)2 and, if necessary, on its amendment or renewal, a firm must tell the customer whether:

   1. (a)

      it gives advice on the basis of a fair analysis of the market; or

   2. (b)

      it is under a contractual obligation to conduct insurance mediation business exclusively with one or more insurance undertakings; or

   3. (c)

      it is not under a contractual obligation to conduct insurance mediation business exclusively with one or more insurance undertakings and does not give advice on the basis of a fair analysis of the market.

2. (2)

   A firm that does not advise on the basis of a fair analysis of the market must inform its customer that he has the right to request the name of each insurance undertaking with which the firm may and does conduct business. A firm must comply with such a request.

Prior to conclusion of an initial contract of insurance with a consumer a firm must state whether it is

giving a personal recommendation or information.

1. (1)

   All information to be provided to a customer in accordance with this chapter must be communicated:

   1. (a)

      on paper or on any other durable medium available and accessible to the customer;

   2. (b)

      in a clear and accurate manner, comprehensible to the customer; and

   3. (c)

      in an official language of the State of the commitment or in any other language agreed by the parties.

2. (2)

   The information may be provided orally where the customer requests it, or where immediate cover is necessary.

3. (3)

   In the case of telephone selling, the information may be given in accordance with the distance marketing disclosure rules (see ICOBS 3.1.14 R).

4. (4)

   If the information is provided orally, it must be provided to the customer in accordance with (1) immediately after the conclusion of the contract of insurance.