COBS 13.2 Product information: production standards, form and contents

When a firm prepares documents or information in accordance with this chapter, the firm should consider the rules on providing product information (COBS 14). Those rules require a firm to provide the product information in a durable medium or via a website that meets the website conditions (if the website is not a durable medium).

When a firm prepares documents or information for a life policy, personal pension or stakeholder pension in accordance with this chapter, the firm should:

1. (1)

   consider the rules on communicating with clients (COBS 4). Those rules require a firm to ensure that a communication is fair, clear and not misleading. In particular, a firm should:

   1. (a)

      take into account its target market's understanding of financial services when preparing documents and information;

   2. (b)

      present information in a logical order;

   3. (c)

      use clear and descriptive headings, and where appropriate, cross references and sub-headings to aid navigation;

   4. (d)

      where possible, use plain language and avoid the use of jargon, unfamiliar or technical language;

   5. (e)

      if it is necessary to use jargon, unfamiliar or technical language, provide accompanying explanations in plain language;

   6. (f)

      use short sentences;

   7. (g)

      (if the key features illustration is separate from the key features document) clearly cross-reference between the two and avoid duplication where possible;

   8. (h)

      concentrate on key product information, cross reference to background information, detailed explanations and information about how to apply for the product; and

   9. (i)

      avoid duplication and unnecessary disclaimers;

2. (2)

   taking into account the means of printing or display, consider whether the following can be used to improve the client's understanding of the product, in particular:

   1. (a)

      design devices such as side annotations, shading, colour, bulleted lists, tables and graphics; and

   2. (b)

      the type size, line width, line spacing, and use of white space; and

3. (3)

   ensure that the use of colour in a document does not disguise, diminish or obscure important information if that document is printed or photocopied in black and white.

The Solvency II Directive information can be included in one or more of a key features document, a key features illustration, (where permitted by DISC) a product summary or any other document.