Related provisions for COBS 19.7.12

1 - 1 of 1 items.

Search Term(s)

Filter by Topics

Filter by Modules

Filter by Documents

Filter by Keywords

Effective Period

Similar To

To access the FCA Handbook Archive choose a date between 1 January 2001 and 31 December 2004 (From field only).

COBS 19.7.1RRP
In this section:(1) [deleted]2(2) “pension decumulation product” is a product used to access pension savings and includes:2(a) a facility to enable a retail client to make an uncrystallised funds pension lump sum payment; 2(b) an option to take a small lump sum payment; 2(c) a drawdown pension; and2(d) a pension annuity; 2(3) “pension savings” is the proceeds of the client'spersonal pension scheme, stakeholder pension scheme, or occupational pension scheme;(4) “retirement risk
COBS 19.7.4GRP
(1) The purpose of this section is to ensure that a firm, which is communicating with a retail client about a pension decumulation product, gives appropriate retirement risk warnings at the point when the retail client has decided how to access their pension savings. (2) If the retail client has not yet decided what to do,2 the firm should consider whether it is required to signpost the pensions guidance under COBS 19.4.5R2 (signposting pensions guidance) and whether it may be
COBS 19.7.9RRP
Based on how the retail client wants to access their pension savings, at step 2 the firm must ask the client questions to identify whether any risk factors are present, except where COBS 19.7.9AR applies2.
COBS 19.7.9ARRP
2If the value of the retail client’s pension savings is £10,000 or less and there are no safeguarded benefits, the firm:(1) is not required to ask questions to identify whether any risk factors are present; and(2) must prepare appropriate retirement risk warnings based on the risk factors relevant to each pension decumulation product it offers to enable retail clients to access their pension savings.
COBS 19.7.9BRRP
2A firm may ask the client the questions required by COBS 19.7.9R before the client has decided (in principle) to take one of the actions specified in COBS 19.7.7R to access their pension savings.
COBS 19.7.9CRRP
2If, to complete step 2, a firm relies on information gathered prior to the client’s decision to access their pension savings, the firm must be satisfied that this information is relevant, accurate and up-to-date before giving the risk warnings at step 3.
COBS 19.7.10RRP
A firm must prepare the questions required by COBS 19.7.9 R before taking the steps for the first time, and must keep the questions up to date.
COBS 19.7.13RRP
At step 3:2(1) if the value of the retail client's pension savings is £10,000 or less and there are no safeguarded benefits, based on how the retail client wants to access their pension savings, a firm must give the client the appropriate retirement risk warnings prepared under COBS 19.7.9AR(2); and 2(2) in all other cases, a firm must give the retail client appropriate retirement risk warnings in response to the client's answers to the firm's questions.2
COBS 19.7.14RRP
A firm must prepare the retirement risk warnings required by COBS 19.7.13 R in good time before taking the steps for the first time, and must keep them up to date.
COBS 19.7.15GRP
If after considering the retail client's answers it is unclear whether a risk factor is present, a firm should give the client the appropriate retirement risk warning.
COBS 19.7.16RRP
When communicating the signpost and retirement risk warnings, the firm must do so clearly and prominently.
COBS 19.7.17RRP
Whatever the means of communication, the firm must ensure that the retail client cannot progress to the next stage of the sale unless the relevant signpost or retirement risk warning has been communicated to the client.
COBS 19.7.19RRP
Firms must record whether the retail client has received:(1) the retirement risk warnings at step 3 of the process specified in this section;(2) regulated advice; and(3) pensions guidance.