COBS TP 2 Other Transitional Provisions

(1) If a firm provides services of an ongoing nature to an existing client it need not provide information to that client that it would be required to provide under COBS to a new client but which it was not required to provide under COB.

(2) Services of an ongoing nature include safekeeping and administration investments and managing investments,

(1) If a firm provides a service for an existing client that is not of an ongoing nature and which relates to the same particular type of designated investment as a previous service, the firm need not provide information to that client that it would be required to provide under COBS 6.1 to a new client but which it was not required to provide under COB.

(2) But a firm should ensure that the client has received all relevant information in relation to a subsequent transaction, such as details of product charges that differ from those described in respect of a previous transaction.

COBS 14.1 and COBS 14.2

This transitional rule applies in relation to a periodic reporting period for a periodic statement that includes 1 November 2007.

A firm may choose to comply with either COBS 16.3 or COB 8.2 in providing any periodic statement in relation to which this rule applies.

1 November 2007

[expired]

The rules in column (2) do not apply in relation to a firm’s adviser charges, employer or trustee funded pension advice charge, or remuneration incurred in respect of work that is commenced prior to 1 October 2020 and is completed before 1 January 2021 where:

(1) a firm agreed in writing to be engaged by a retail client before 1 October 2020; or

(2) (in the case of an employer or trustee funded pension advice charge) a firm agreed in writing to be engaged by the employer or the trustee before 1 October 2020; and

(3) (in either case) the firm agreed in writing to provide full pension transfer or conversion advice on a contingent basis.

(1) The rule in column (2) does not apply to a firm until 1 January 2020 and is replaced by TP 2.8FAR(2), the guidance in TP 2.8FB and the guidance in TP 2.8FC below.

(2) Where a retail client refuses to answer questions that would allow a firm to determine whether a pension annuity on an enhanced basis could be available, a firm must:

(a) include information warning the retail client that:

(i) a higher annual income might be obtained; or

(ii) at least the requested annual income might be obtained for a lower purchase price;

by searching the open market for a pension annuity; and

(b) as applicable, use the template in Part 3 or Part 6 of COBS 19 Annex 3R,

unless the firm obtains a market leading pension annuity in line with the guidance below in TP 2.8FC.

A firm in TP 2.8FAR(2) may consider it appropriate to include in the quote provided to the retail client a statement that the client may have health or lifestyle factors that could mean that they are eligible for a higher income.

For example, the wording in the “Did you know?” box in the template in Part 3 or Part 6 of COBS 19 Annex 3R could be adapted to reflect the fact that a client has refused to answer questions about their health or lifestyle.

The provisions listed in column (2) do not apply to a firm if, and to the extent that, they are inconsistent with an arrangement that was formally approved by the appropriate regulator, a previous regulator or a court of competent jurisdiction, on or before 20 January 2005.

The rules and guidance on treating with-profits policyholders fairly (COBS 20.2.1 G – COBS 20.2.41 G;) may be contrary to, or inconsistent with, some arrangements that were formally approved by the appropriate regulator, a previous regulator or a court of competent jurisdiction, on or before 20 January 2005. The effect of TP 2.9 is that these rules do not apply to such arrangements if, and to the extent that, it is inconsistent with them.

A firm should be mindful, however, that, even if some or all of these rules are disapplied, the firm is still subject to the rules in the rest of the Handbook, including Principle 6.

(1) COBS 20.2.24 R to COBS 20.2.25A R have effect in relation to payments of compensation and redress arising out of events occurring on or after 31 July 2009.

(2) For payments of compensation and redress arising out of events occurring before 31 July 2009, COBS 20.2.23 R to COBS 20.2.25 R apply as they were in force on 30 July 2009.

(1) Unless (2) applies, and subject to (3), a firm that has ceased to effect new contracts of insurance in a with-profits fund must submit to the FCA a run-off plan of the type described in COBS 20.2.53R (2); COBS 20.2.56 R, and COBS 20.2.57 G, if it has not done so already, by 31 December 2012, regardless of when it closed to new business.

(2) Paragraph (1) does not apply to a firm if, and to the extent that, to comply would be contrary to or inconsistent with an arrangement that was formally approved by a court of competent jurisdiction, on or before 1 April 2012.

(3) A firm required by (1) above to produce a run-off plan:

(a) should consider the guidance in SUP App 2.15.6 G, 2.15.7G (11), 2.15.13 G, 2.15.14 G and 2.15.15 G to continue to apply to it, as appropriate;

(b) may demonstrate compliance with the guidance in SUP App 2.15.2 G, 2.15.3 G, 2.15.4 G and 2.15.5 G by reference to existing documents created by or for the firm, provided that it submits copies of relevant extracts to the FCA;

(c) may disregard the remaining provisions in SUP App 2.15G if to do so would be consistent with meeting the requirements of COBS 20.2.56R (1); and

(d) may otherwise tailor the run-off plan to reflect the fact that the fund in question has already been closed.

A firm will comply with the provisions in column (2) if it chooses to comply with the following amendments made by Part 2 of the Conduct of Business Sourcebook (Pension Transfers) Instrument 2018 as if those amendments were already in force: COBS 19.1.1-A; COBS 19.1.2BR; COBS 19.1.2CR; COBS 19.1.2DG; COBS 19.1.2EG; COBS 19.1.3AR; COBS 19.1.3BG; COBS 19 Annex 4A; COBS 19 Annex 4B; COBS 19 Annex 4C; COBS 19 Annex 5.

If a firm does so, the reference to “comparison” in COBS 19.1.7BG must be read as a reference to “appropriate pension transfer analysis”.

(1) The requirement to publish administration charges and transactions costs information does not apply in respect of the year 1 January to 31 December 2019. Accordingly, the first publication of administration charges and transactions costs information must be completed by 31 July 2021, in respect of the year 1 January to 31 December 2020.

(2) In respect of the year 1 January to 31 December 2020, the requirement to publish administration charges and transactions costs information applies to default arrangements only.

The following Glossary definitions (and the relevant provisions referred to within these definitions) have the same meaning as in Annex A of the Conduct of Business Sourcebook (Investment Pathways) Instrument 2019 coming into force on 1 February 2021:

(1) capped drawdown pension fund;

(2) flexi-access drawdown pension fund;

(3) manufacture; and

(4) pathway investment.

In relation to the matters in COBS 19.5.5R(2A) to (2D), where the first annual report produced by the Chair of an IGC from 6 April 2020 relates to a year:

(1) that ends before 6 April 2020, the rule in column (2) does not apply; or

(2) that starts before (but ends after) 6 April 2020, the IGC is not required to comply with the rule in column (2) to the extent the IGC does not have sufficient information to produce a substantive report. In such cases where there is insufficient information to produce a substantive report, the Chair of the IGC must include a statement in the annual report to that effect.

For information purposes only, for the benefit of providers of personal pension products, the consultation version of the following pensions dashboard standards as at 28 October 2022 are included in the links below:

• data standards (https://www.pensionsdashboardsprogramme.org.uk/wp-content/uploads/2022/07/PDP-Data-standards.pdf)

• technical standards (https://www.pensionsdashboardsprogramme.org.uk/wp-content/uploads/2022/07/PDP-Technical-standards.pdf)

• reporting standards (https://www.pensionsdashboardsprogramme.org.uk/wp-content/uploads/2022/07/PDP-Reporting-standards.pdf)

• code of connection (https://www.pensionsdashboardsprogramme.org.uk/wp-content/uploads/2022/07/PDP-Code-of-connection.pdf)

The effect of the rules in COBS 19.11 is that firms need to comply on an ongoing basis with the most up-to-date published versions of the pensions dashboard standards.

The effect of COBS TP 2.46 is that a firm will not be required to offer a default option in accordance with COBS 19.12.10R and COBS 19.12.15R where the firm has legacy only business. A firm has legacy only business for the purpose of COBS TP 2.46 where it does not enter into a new non-workplace pension with non-advised clients after 1 December 2023.

For the avoidance of doubt, where a firm does not enter into new non-workplace pensions with non-advised clients after 1 December 2023, but still continues to offer, distribute or promote new investments, or promote platform services that distribute new investments to (or top-up existing investments for) existing non-advised clients to include in their existing non-workplace pension, the firm will still be considered to have ‘legacy only business’. As a result, it will not be required to offer a default option in that situation.

COBS 19.9 and COBS 19 Annex 3 Part 4;

COBS 19.9, COBS 19 Annex 3 Part 5, COBS 19.9 and COBS 19 Annex 3 Part 6