Related provisions for COBS 19.7.12

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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’s personal pension scheme4 or occupational pension scheme;(4) “retirement risk warnings” are the warnings
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:3(a) explains the nature and purpose of pensions guidance to the retail client;3(b) encourages the retail client to receive pensions guidance; and3(c) gives appropriate retirement risk warnings,3at 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
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:3(1) received3 the retirement risk warnings at step 3 of the process specified in this section;(2) received3 regulated advice; (3) received pensions guidance; or3(4) opted out (and did not receive regulated advice).3