ICOBS TP 1 Transitional Provisions

Consolidated Motor Insurance Directive3

1

[FCA]

R

In relation to a claim by an injured party received by a motor vehicle liability insurer or its claims representative on or before 10 June 2007, the motor vehicle liability claims handling rules (see ICOBS 8.2.6 R to ICOBS 8.2.11 G) only apply if the claim results from an accident occurring in an EEA State other than the injured party's EEA State of residence which was caused by the use of a vehicle insured through an establishment in, and normally based in, an EEA State other than the injured party's EEA State of residence.

Initial disclosure document

2

Expired6

3

Expired2

4

Expired22

5

Expired2

Series of events

16

[FCA]

R

If, for a connected travel insurance intermediary, the application of any provision in this sourcebook is dependent on the occurrence of a series of events, the provision applies with respect to the events that occur on or after 1 January 2009.4

4Employers' liability insurance: disclosure by insurers

47

Expired6

48

Expired6

8A5

Expired6

8B5

[FCA]

R

For the purposes of the report prepared by an auditor required under ICOBS 8.4.4R (1)(c):

(1)

a firm will not be regarded as having breached ICOBS 8.4.4R (1)(c)if the firm has obtained and submitted to the FCA an independent assurance report addressing the accuracy and completeness of the employers' liability register following discussions with its auditors as to the form and content of the report, even if that report does not comply with ICOBS 8.4.4C R;

(2)

notwithstanding (1), a firm will be deemed to have complied with ICOBS 8.4.4R (1)(c) to the extent that the report obtained and submitted includes a detailed account of the procedures performed and the results of those procedures including, as a minimum:

(a)

a description of the underlying records from which the register is extracted;

(b)

a description, and the results, of the tests aimed at addressing the risk that the register is not completely and accurately compiled from data held on the firm's underlying records, and of the method of selecting the sample and the rationale for its being representative, including the following:

(i)

a reconciliation of the number of, and the identity of, policies for which information is included in the register against the number of, and the identity of, relevant policies for which details are contained in the underlying records and testing reconciliations to ensure that reconciling items are explained and appropriate;

(ii)

analysis of a representative sample of relevant employers liability claims made to the firm to ensure claims made have been entered onto the register; and

(iii)

analysis of a representative sample of policies in relation to which information appears on the register to ensure that all required information is included and that the included information is accurate compared to the information contained in the underlying records;

(c)

for the purposes of (b)(ii) and (iii), unless (d) applies, the firm must adopt the following approach to determining a representative sample in relation to each set of claims made, or policies, for which the same systems and controls are used in producing information for the register:

(i)

for each set of claims made or policies, a sample may be regarded as representative if the ratio of the minimum number in the sample to 25 is equal to the ratio of the square root of the total number of claims made or policies within the set to the square root of 1000, subject to a minimum of 10 policies or claims made; and

(ii)

for sets where the information required to be placed on the register relates to fewer than 10 policies, the sample may be regarded as representative if it includes all of those policies;

(d)

where the firm and the auditor consider that the approach to determining a representative sample set out in (c)(i) to (iii) are inappropriate having regard to the firm's particular circumstances, the report must set out the reasons for selecting a different representative sample by reference to the methods set out in (c); and

(e)

any other procedures agreed between the firm and the auditor as deemed necessary to be carried out by the auditor to test the extraction of information from underlying records by the firm for the purposes of ICOBS 8.4.4R (1)(a) tailored as appropriate to correspond to the firm's particular circumstances and the results of those procedures.

TP 8BR(1) applies until 1 August 2012.

TP 8BR(2) applies until 1 August 2012 for all firms, and thereafter until 1 August 2014 or, if earlier, the date upon which the firm first obtains a director's certificate which is not a qualified director's certificate.

8C5

[FCA]

G

The requirement set out in 8BR(2) is for what is commonly referred to by auditors as 'agreed upon procedures' under which the auditor is not required to provide an opinion or express assurance. All firms will be able to provide reports based on 'agreed upon procedures', instead of a limited assurance engagement, up until 1 August 2012. After that only firms which obtain qualified director's certificates will be able to use agreed upon procedures, and only until (and including) 1 August 2014, or, if earlier, the date upon which they first obtained a non-qualified director's certificate.

49

Expired6

59A

[FCA]

R

(1)

For the purposes of ICOBS 8.4.4R (1)(a), to the extent that a firm is unable to include information required under ICOBS 8.4.4R (2)(b)(ii) solely because of a failure by a third party outside the firm's control, then provided that the firm has used, and continues to use, best endeavours to obtain that information, other than refusing to provide cover to an employer solely because it has not provided the information requested, the firm will be deemed to comply with the requirements in ICOBS 8.4.4R (2)(b)(ii) and the corresponding parts of ICOBS 8 Annex 1.

(2)

For the purposes of ICOBS 8.4.4R (1)(b) and (1)(c), a firm must treat references to compliance with ICOBS 8.4.4R (1)(a), ICOBS 8.4.4R (2) and ICOBS 8 Annex 1 as if TP 9AR did not apply.

59B

[FCA]

G

The effect of TP 9AR(1) is that a firm will not be in breach of the requirements to include relevant information on its register to the extent that it is unable to obtain that information from third parties over which it does not exercise control. However, in order to be able to rely on this provision the firm will need to be able to demonstrate that it has used its best endeavours to obtain the information from the third party over the relevant time period and continues to do so, other than by refusing to provide cover to that employer solely for failure to provide relevant information. The effect of TP 9AR(2) is that even though the firm may not be regarded as being in breach of the underlying requirements in ICOBS 8.4.4R (1)(a), the director's certificate and report prepared by an auditor will need to be addressed at the level of compliance of the register as if TP 9AR(1) did not provide any transitional relief from the firm being in breach.

5TP 9AR(1) and (2) and 9BG apply until 1 October8 20147.

410

Expired6

10A5

Expired6

411

Expired6

412

Expired6

413

[FCA]

R

For the purposes of ICOBS 8.4.11R (2)(a), ICOBS 8.4.11R (2)(b), ICOBS 8.4.12A R5, ICOBS 8 Annex 1, TP 8,TP 8B5 and TP 9, in relation to references to claims made in relation to policies:

(1)

for claims received by a firm prior to 1 April 2011 which have not been settled as at 1 April 2011, those claims must be treated, for the purposes of the above rules, as having been made on or after 1 April 2011, and for the purposes of the above rules, the firm must include information in the form in ICOBS 8 Annex 1.1.2 R, in accordance with and including the notes, held by the firm (with the exception of information within TP 8R(1)(d) until 1 April 2012) within three months of the date upon which the claim was settled, on or after 1 April 2011; and

(2)

if, as at 1 April 2011, a firm's systems record5 claims by reference to the date the claim was created in the firm's systems or the date upon which it was settled, then, notwithstanding ICOBS 8.4.12A R,5 that firm may treat references to the date that a claim was made as a reference to the date that the claim was created in the firm's systems, or if applicable to the firm, the date that the claim was settled.

TP 13R(2) applies until 1 April 2013.5