ICOBS 4.1 General requirements for insurance intermediaries and insurers

This chapter4 applies to an insurance intermediary and to an insurer carrying on insurance distribution activities4.

In good time before4 the conclusion of an initial contract of insurance and, if necessary, on its amendment or renewal :4

1. (1)

   a firm must provide the customer with at least the following information:4

   1. (a)

      its identity, address and whether it is an insurance intermediary or an insurance undertaking;4

   2. (b)

      whether it provides a personal recommendation about the insurance products offered;4

   3. (c)

      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; and4

2. (2)

   an insurance intermediary must also provide the customer with the following information:4

   1. (a)

      the fact that it is included in the Financial Services Register (or if it is not on the Financial Services Register, the register in which it has been included) and the means for verifying this;4

   2. (b)

      whether it has a direct or indirect holding representing 10% or more of the voting rights or capital in a given insurance undertaking (that is not a pure reinsurer); 4

   3. (c)

      whether a given insurance undertaking (that is not a pure reinsurer) or its parent undertaking has a direct or indirect holding representing 10% or more of the voting rights or capital in the firm; and4

   4. (d)

      whether it is representing the customer or is acting for and on behalf of the insurer; and4

   [Note: articles 18 and 19(1)(a) and (b) of the IDD4]

3. (3)

   paragraph (2) does not apply in relation to a connected travel insurance contract.

A firm whose contact with a customer is limited to effecting introductions (see PERG 5.6) need only provide its identity,4 address and whether it is a member of the same group as the firm to which it makes the introduction.

1. (1)

   Where an insurance intermediary proposes or advises on a contract of insurance then in good time before4 the conclusion of an initial contract of insurance (other than a connected travel insurance contract) and, if necessary, on its amendment or renewal an insurance intermediary4 must provide the customer with at least information on whether the firm4:

   2
   1. (a)

      gives a personal recommendation4, on the basis of a fair and personal4 analysis; or

   2. (b)

      is under a contractual obligation to conduct insurance distribution4exclusively with one or more insurance undertakings, in which case it must provide the names of those insurance undertakings4; or

   3. (c)
      1. (i)

         is not under a contractual obligation to conduct insurance distribution exclusively with one or more insurance undertakings; and4

      2. (ii)

         does not give a personal recommendation on the basis of a fair and personal analysis;4

      in which case it must provide its customer with the name of those insurance undertakings with which the insurance intermediary may and does conduct business.4

2. (2)

   [deleted]4

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Where the firm has given information in ICOBS 4.1.6R(1)(b) and (c), then in good time before the4 conclusion of an initial contract of insurance with a consumer a firm must also4 state whether it is giving:4

1. (1)

   a personal recommendation but not on the basis of a fair and personal analysis;4

2. (2)

   other advice on the basis of a fair analysis of the market;4

3. (3)

   other advice not on the basis of a fair analysis of the market; or4

4. (4)

   just information.4