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Status: You are viewing the version of the handbook as on 2005-06-30.

COB 3.13 Additional requirements for financial promotions for an overseas long-term insurer

COB 3.13.1R
  1. (1)

    A firm must not communicate or approve a financial promotion to enter into a life policy with a person who is not:

    1. (a)

      an authorised person; or

    2. (b)

      an exempt person who is exempt in relation to effecting or carrying out contracts of insurance of the class to which the financial promotion relates; or

    3. (c)

      a company which has its head office in an EEA State other than the United Kingdom and which is entitled under the law of that State to carry on there insurance business of the class to which the financial promotion relates; or

    4. (d)

      a company which has a branch or agency in an EEA State other than the United Kingdom and is entitled under the law of that State to carry on there insurance business of the class to which the financial promotion relates; or

    5. (e)

      a company authorised to carry on insurance business of the class to which the financial promotion relates in any country or territory which is listed in (2).

  2. (2)

    The countries or territories referred to in (1)(e) are:

    1. (a)

      the Bailiwick of Guernsey;

    2. (b)

      the Isle of Man;

    3. (c)

      the Commonwealth of Pennsylvania;

    4. (d)

      the State of Iowa; and

    5. (e)

      the Bailiwick of Jersey.

  3. (3)

    For the purposes of (1), Gibraltar shall be regarded as if it were an EEA State.

COB 3.13.2R

A financial promotion for an overseas long-term insurer, which has no establishment in the United Kingdom, must include:

  1. (1)

    the full name of the overseas long-term insurer, the country where it is registered, and, if different, the country where its head office is situated;

  2. (2)

    a prominent statement that 'holders of policies issued by the company will not be protected by the Financial Services Compensation Scheme if the company becomes unable to meet its liabilities to them'; and,

  3. (3)

    where any trustee, investment manager or United Kingdom agent of the overseas long-term insurer is named which is not independent of the overseas long-term insurer, a prominent statement of that fact.

COB 3.13.3R

A financial promotion for an overseas long-term insurer which is authorised to carry on long-term insurance business in any country or territory listed in COB 3.13.1 R (2) must also include:

  1. (1)

    the full name of any trustee of property of any description which is retained by the overseas long-term insurer in respect of the promoted contracts;

  2. (2)

    an indication whether the investment of such property (or any part of it) is managed by the overseas long-term insurer or by another person and the full name of any investment manager;

  3. (3)

    the registered office of any such trustee and of any investment manager and of his principal office (if different); and

  4. (4)

    where any person in the United Kingdom takes, or may take, any steps on behalf of the overseas long-term insurer to enter into a promoted contract, the following details about that person:

    1. (a)

      the full name of the overseas long-term insurer;

    2. (b)

      the registered or head office in the United Kingdom; and,

    3. (c)

      if there is more than one such person, the principal or main person in the United Kingdom.

COB 3.13.4R

If a financial promotion relates to a life policy with an overseas long-term insurer but does not name the overseas long-term insurer by giving its full name or its business name:

  1. (1)

    it must include the following prominent statement: "This financial promotion relates to an insurance company which does not, and is not authorised to, carry on in any part of the United Kingdom the class of insurance business to which this promotion relates. This means that the management and solvency of the company are not supervised by the Financial Services Authority. Holders of policies issued by the company will not have the right to complain to the Financial Ombudsman Service if they have a complaint against the company and will not be protected by the Financial Services Compensation Scheme if the company should become unable to meet its liabilities to them"; and 1

  2. (2)

    if it also refers to other investments it must make this clear.

COB 3.13.5G

For the purposes of COB 3.13.2 R (2) and COB 3.13.4 R (1) a prominent statement is one that is:

  1. (1)

    made immediately after the full name;

  2. (2)

    alongside the full name; or

  3. (3)

    where the name is stated more than once, the most prominent or the first if equally prominent.