Content Options

View Options

Status: You are viewing the version of the handbook as on 2009-03-31.

COBS 19.2 Personal pensions, FSAVCs and AVCs

Financial promotions

COBS 19.2.1GRP

A financial promotion for1 a 1FSAVC should contain a prominent warning that, as an alternative1 an AVC arrangement 1exists, and that details can be obtained from the scheme administrator (if that is the case).1

Suitability

COBS 19.2.2RRP

When a firm prepares a suitability report it must:

  1. (1)

    (in the case of a personal pension scheme), explain why it considers the personal pension scheme to be at least as suitable as a stakeholder pension scheme; and

  2. (2)

    (in the case of an FSAVC), explain why it considers the FSAVC to be at least as suitable as any stakeholder pension scheme, AVC or facility to make additional contributions to an occupational pension scheme which is available to the retail client.

COBS 19.2.3RRP

When a firm promotes a personal pension scheme, including a group personal pension scheme, to a group of employees it must:

  1. (1)

    be satisfied on reasonable grounds that the scheme is likely to be at least as suitable for the majority of the employees as a stakeholder pension scheme; and

  2. (2)

    record why it thinks the promotion is justified.