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COBS 20.1 Application

COBS 20.1.1R

1This chapter applies to a firm carrying on with-profits business, except to the extent modified in the following rules.

COBS 20.1.2R
  1. (1)

    The section on the process for reattribution (COBS 20.2.42 R to COBS 20.2.52 G):

    1. (a)

      applies to a firm that is proposing to make a reattribution of its inherited estate;

    2. (b)

      but not if, and to the extent that, it would require the firm to breach, or would prevent the firm from complying with, an order made by a court of competent jurisdiction.

  2. (2)

    If a firm proposes to seek an order from a court of competent jurisdiction that would allow or require it to act in a way that is contrary to the rules on reattribution (COBS 20.2.42 R to COBS 20.2.52 G) (through, or because of, the exception in (1)(b)), the firm must:

    1. (a)

      tell the appropriate regulator that that is what it proposes to do;

    2. (b)

      seek the order at the earliest opportunity; and

    3. (c)

      if it wishes to take a step that would be contrary to those rules in anticipation of such an order, secure a waiver before it does so.

COBS 20.1.3R

For an EEA insurer:

  1. (1) 4
    1. (a)

      the rules and guidance on the with-profits fund (COBS 20.1A), on treating with-profits policyholders fairly (COBS 20.2.1 G to COBS 20.2.41 G and COBS 20.2.53 R to COBS 20.2.60 G), and the governance provisions in COBS 20.5. apply only in so far as responsibility for the matter in question has not been reserved to the firm's Home State regulator by an EU instrument;4

    notwithstanding the above:

    1. (b)

      COBS 20.2.26A R (financial penalties and the with-profits fund) applies;4

    2. (c)

      the rules and guidance on the notification of policyholders where there is a change in the percentage allocation of distributions (COBS 20.2.19A R to COBS 20.2.19C G) apply but only to the extent that the UK is the State of the commitment;4

  2. (2)

    COBS 20.3 (Principles and Practices of Financial Management) does not apply;

  3. (3)

    the rule on providing information to with-profits policyholders where the United Kingdom is the State of the commitment4 (COBS 20.4.4 R) applies5, but the rest of COBS 20.4 (Communications with with-profits policyholders) does not; and5

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  4. (4)

    [deleted]5

    44
  5. (5)

    references in COBS 20 to a with-profits fund or to terms derived from the Solvency II Directive requiring transposition in the Home State, apply as if they were references to the relevant fund or terms established in accordance with the requirements of the Home State.4

COBS 20.1.4R

The following do not apply to a non-directive friendly society:

  1. (1)

    COBS 20.3 (Principles and Practices of Financial Management);

    3
  2. (2)

    COBS 20.4 (Communications with with-profits policyholders); and3

  3. (3)

    COBS 20.5 (With-profits governance).3

COBS 20.1.5R

This chapter does not apply to with-profits business that consists of effecting or carrying out Holloway sickness policies.