ICOBS TP 2 Other Transitional Provisions

6(1)

(2) Material to which the transitional provision applies

(3)

(4) Transitional provision

(5) Transitional provision: dates in force

(6) Handbook provision: coming into force

1

ICOBS 4.5.1 G

R

Expired1

2

ICOBS 4.5

R

Expired1

23

ICOBS 6A.2.1R(1) to (3)

R

A firm need not comply with ICOBS 6A.2.1R(1) to (3) in relation to an automatic renewal of an agreement for an optional additional product which was entered into on or before 31 March 2016 provided:

From 1 April 2016

On 1 April 2016

(1)

the automatic renewal of the agreement is on substantially the same terms. The phrase “on substantially the same terms” is to be interpreted in the same way as in ICOBS 6A.2.1R (10)(b) and (c).

(2)

on the occasion of the first automatic renewal on or after 1 April 2016, the firm takes reasonable steps to ensure that the customer is informed:

(a)

that the renewal of the agreement is optional;

(b)

that the customer may elect not to renew the agreement; and

(c)

of the effect of the non-renewal of the agreement, if any, on the non-investment insurance contract; and

(3)

the procedure to be used by customers for electing not to renew the agreement pays due regard to the interests of customers and treats them fairly.

34

ICOBS 2.5.2AR

R

An insurer need not comply with ICOBS 2.5.2AR for contracts entered into or variations agreed before 1 August 2017.

From 1 August 2017

On 1 August 2017

45

ICOBS 6A.6

R

A firm need not comply with ICOBS 6A.6 for contracts entered into before 1 January 2022.

From 1 January 2022

1 January 2022

46

ICOBS 6B.2.60R

R

This transitional rule applies to a firm which is required to provide an attestation under ICOBS 6B.2.60R.

From 1 January 2022 to 1 April 2022

1 January 2022

The first attestation must be submitted on or before 31 March 2022.

The first attestation relates only to a firm’s compliance on the date when ICOBS 6B comes into force (and not to a reporting period).

47

ICOBS 6B

R

(1)

This transitional rule applies to a firm which is required to comply withICOBS 6B.

From 1 January 2022 to 1 April 2022

1 January 2022

(2)

Where a firm so elects, it need not implement the rules in ICOBS 6B by 1 January 2022, but the firm must:

(a)

implement the rules by 17 January 2022; and

(b)

comply with paragraphs (3) and (4).

(3)

(a)

This paragraph applies to all home insurance and motor insurance renewal notices prepared between 1 January 2022 and 16 January 2022 inclusive.

(b)

A firm must by 28 February 2022 calculate the equivalent new business price in accordance with ICOBS 6B for all renewal notices that this paragraph applies to which were accepted by the customer.

(c)

Where the equivalent new business price is lower than the price the customer was offered to renew their product, the firm must automatically repay the difference between what the customer actually paid and what the customer should have paid to the customer, using, wherever practical, the same method as the customer used to pay for the policy.

(4)

The first attestation provided by a firm under ICOBS 6B.2.60R and ICOBS TP. 2.6R must include the following:

(a)

a statement of whether the firm made the election in this transitional rule;

(b)

if the firm made the election, a statement that the firm has made all repayments required by this transitional rule; and

(c)

if the firm made the election, the number of customers affected and total amount of repayments made.

48

ICOBS 6.2.6R and ICOBS 6.5.1R.

R

(1)

This transitional rule applies to a firm which is required to comply with ICOBS 6.2.6R or ICOBS 6.5.1R.

From 1 January 2022 to 1 March 2022

1 January 2022

(2)

Where a firm so elects, it need not comply with the rules in ICOBS 6.2.6R or ICOBS 6.5.1R by 1 January 2022, but the firm must:

(a)

implement the rules by 17 January 2022; and

(b)

comply with paragraph (3).

(3)

(a)

This paragraph applies to all communications sent to customers5 between 1 January 2022 and 16 January 2022 inclusive, except communications sent in connection with5 private health or medical insurance and pet insurance.

(b)

A firm must, by 28 February 2022, provide the information required by ICOBS 6.2.6R and ICOBS 6.5.1R to all customers of the firm who hold a current policy with the firm but who did not receive the required information because the firm made the election under paragraph (2)5.

(c)

The information must be provided in writing or another durable medium.