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You are viewing the version of the document as on 2022-03-04.

PROD TP 1 Transitional Provisions

PROD TP 1

1(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

1.1

PROD 4.5R (in particular, PROD 4.5.1R, PROD 4.5.2R, PROD 4.5.4R(5) and PROD 4.5.7R(2)).

R

For the purposes of giving effect to the rules in PROD 4.5R only, any reference to being subject to a reporting requirement within SUP 16.27R must be read as if SUP 16.27R came into force on 1 January 2021.

From 1 January 2021 to 1 July 2021

1 January 2021

21.2

Rules in PROD 4.2 that will be made or amended by the Non-Investment Insurance: Product Governance, Premium Finance, General Insurance Auto-renewal and Home and Motor Insurance Pricing Instrument 2021

R

Where an existing non-investment insurance product:

(1) has, before 1 October 2021, been approved for marketing and distribution in compliance with PROD 4.2; and

(2) remains available for distribution (including renewals) or, if not still being marketed or distributed, there are policies under the product that remain in force,

the manufacturer must, within 12 months of 1 October 2021, review the product and ensure it meets the fair value requirements in PROD 4.2.

From 1 October 2021 up to and including 30 September 2022

1 October 2021

21.3

PROD TP 1.2

G

The effect of PROD TP1.2 and the requirements in PROD 4.2.14AR to PROD 4.2.14SR is that where the firm is unable to identify that the product or package provides fair value it will need to immediately:

(1) cease any distribution of the product, whether directly or through another person, immediately; and/or

(2) take any necessary steps to ensure the product will provide fair value in future.

From 1 October 2021 up to and including 30 September 2022

1 October 2021

21.4

Rules in PROD 4.3 that will be made or amended by the Non-Investment Insurance: Product Governance, Premium Finance, General Insurance Auto-renewal and Home and Motor Insurance Pricing Instrument 2021

R

Where a firm, to which PROD 4.3 applies, distributes an existing non-investment insurance product which was approved for marketing or distribution before 1 October 2021 under PROD 4.2, it must, within 12 months of 1 October 2021, update its distribution arrangements to comply with the requirements in column (2).

From 1 October 2021 up to and including 30 September 2022

1 October 2021

21.5

PROD 4.6.7R

R

A firm has 12 months from 1 October 2021 to make the determination required by the rule in column (2).

From 1 October 2021 up to and including 30 September 2022

1 October 2021

21.6

PROD 4.6.8R

R

A firm must put in the place the necessary product distribution arrangements required by the rule in column (2) within 12 months of 1 October 2021.

From 1 October 2021 up to and including 30 September 2022

1 October 2021

21.7

PROD TP 1.2 to PROD TP 1.6

G

A firm to which any of PROD TP 1.2 to PROD TP 1.6 apply may elect to apply the guidance in PROD 4.2.34EG in relation to the reviews required.

From 1 October 2021 up to and including 30 September 2022

1 October 2021

21.8

PROD 4

G

A TP firm or a Gibraltar-based firm may rely on processes and arrangements that have been applied to a non-investment insurance product which was approved for marketing or distribution before 1 October 2021 where these comply with requirements equivalent to those in PROD 4 in:

(1) (for a TP firm) the TP firm’s Home State (or, where applicable, the EEA state where it has the establishment from which the service is provided); or

(2) (for a Gibraltar-based firm) Gibraltar.

Indefinitely

1 October 2021