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

ICOB 1.3 General application: where?

UK establishments: Territorial scope of ICOB 2 to ICOB 8

ICOB 1.3.1 R

Except as set out in this section, ICOB 2 to ICOB 8 apply in relation to activities carried on from an establishment maintained by the firm (or its appointed representative) in the United Kingdom only.

ICOB 1.3.2 R

In addition to the situation in ICOB 1.3.1 R, ICOB 4.2.19 R (Overseas business for UK retail customers) applies wherever the activity is conducted.

UK establishments: Exemption for insurers and managing agents1

ICOB 1.3.2A R
  1. (1)

    1Notwithstanding ICOB 1.3.1 R, this rule sets out circumstances in which some or all of the rules in ICOB are disapplied for an insurer or a managing agent in relation to any non-investment insurance contract provided, or which may be provided, by it (or in the case of a managing agent, by members for whom it acts).

  2. (2)

    ICOB does not apply if:

    1. (a)

      the intermediary (whether or not an insurance intermediary) in contact with the customer is not established in the United Kingdom; and

    2. (b)

      the customer is not habitually resident in, and, if applicable, the State of the risk is outside, an EEA State.

  3. (3)

    A rule in ICOB which goes beyond the minimum required by Community legislation does not apply if the customer is habitually resident in (and, if applicable, the State of the risk is) an EEA State other than the United Kingdom, to the extent that the EEA State in question imposes measures of like effect.

Financial promotions: Territorial scope of ICOB 3

ICOB 1.3.3 R

Notwithstanding ICOB 1.3.1 R, the territorial scope of ICOB 3 (Financial promotion) is set out in ICOB 3.4 (Application: where?).

General insurance contracts: Territorial scope of ICOB 5

ICOB 1.3.4 R

In addition to the situation in ICOB 1.3.1 R, but subject to ICOB 1.3.6 R, ICOB 5.5.20 R(1) to (3) (Directive-required information) and the other rules in ICOB 5 (in so far as they relate to such information) apply to firms in relation to business in respect of general insurance contracts if the State of the risk is the United Kingdom.

Pure protection contracts: Territorial scope of ICOB 5 and ICOB 6

ICOB 1.3.5 R

In addition to the situation in ICOB 1.3.1 R, but subject to ICOB 1.3.6 R, ICOB 5.5.20 R(4) to (15) and (22) (Directive-required information), the other rules in ICOB 5 (in so far as they relate to such information), and ICOB 6 apply to firms in relation to business in respect of non-investment insurance contracts which are pure protection contracts if the habitual residence of the customer is in the United Kingdom.

Exception to extended territorial scope of ICOB 5 and ICOB 6 for distance contracts provided from other EEA States

ICOB 1.3.6 R

The rules in ICOB 1.3.4 R and ICOB 1.3.5 R do not apply with respect to an activity exclusively concerning a distance contract with a retail customer, if the following conditions are satisfied:

  1. (1)

    the firm carries on the activity from an establishment maintained by the firm in an EEA State other than the United Kingdom;

  2. (2)

    either that EEA State:

    1. (a)

      has implemented the DMD; or

    2. (b)

      has obligations in its domestic law corresponding to those provided for by the DMD;

  3. (3)

    and, in either case, with the result that the obligations provided for by the DMD (or corresponding obligations) are applied by that EEA State when the firm carries on that activity; and

  4. (4)

    the firm is a national of an EEA State or a company or firm mentioned in article 48 of the Treaty.

ICOB 1.3.7 G

The restriction in ICOB 1.3.6 R reflects the fact that the provisions of the Distance Marketing Directive will be for the country of origin of the insurance intermediary to enforce. This is the state of the firm's establishment (head office or branch) carrying on the insurance mediation activity.

ICOB 1.3.8 R

The territorial scope of this sourcebook is modified by ECO in relation to electronic commerce activities and electronic commerce communications.

ICOB 1.3.9 G

ICOB 1.4 contains guidance on how this sourcebook is modified by ECO.

IMD passported activities1

ICOB 1.3.10 R
  1. (1)

    1In addition to ICOB 1.3.1 R, the provisions in ICOB 1.3.11 R apply to the passported activities carried on by a UK firm under the IMD from a branch elsewhere in the EEA unless the Host State regulator imposes measures which implement articles 12 and 13 of the IMD for those activities.

  2. (2)

    Notwithstanding ICOB 1.3.1 R, the provisions in ICOB which implement articles 12 and 13 of the IMD do not apply to a UK firm providing cross border services in another EEA State under the IMD, except that:

    1. (a)

      the provisions in ICOB 1.3.11 R apply if the Host State regulator does not impose minimum measures which implement articles 12 and 13 of the IMD for those activities; and

    2. (b)

      the other provisions in ICOB relating to articles 12 and 13 of the IMD apply unless the Host State regulator imposes measures of like effect for those activities.

  3. (3)

    In addition to ICOB 1.3.1 R:

    1. (a)

      the provisions in ICOB 1.3.11 R do not apply to an incoming EEA firm carrying on passported activities under the IMD from a branch in the United Kingdom if the firm's Home State regulator imposes minimum measures which implement articles 12 and 13 of the IMD for these activities;

    2. (b)

      the provisions in ICOB 1.3.11 Rapply to an incoming EEA firm providing cross border services in the United Kingdom if the firm's Home State regulator does not impose minimum measures which implement articles 12 and 13 of the IMD for those activities; and

    3. (c)

      the other provisions in ICOB relating to articles 12 and 13 of the IMD (beyond the minimum required to implement these articles)apply to an incoming EEA firm providing cross-border services in the United Kingdom, unless the firm's Home State regulator imposes measures of like effect for those activities.

ICOB 1.3.11 R

1The provisions referred to in ICOB 1.3.10 R are:

  1. (1)

    ICOB 4.2.2 R to ICOB 4.2.8 R, ICOB 4.2.11 R, ICOB 4.2.14 R and ICOB 4.2.20 R;

  2. (2)

    ICOB 4.3;

  3. (3)

    ICOB 4.4 (except ICOB 4.4.7 R); and

  4. (4)

    ICOB 4.8.1 R.

ICOB 1.3.12 G
  1. (1)

    1The provisions in ICOB 1.3.11 R are the minimum provisions required for the implementation of articles 12 and 13 of the IMD.

  2. (2)

    The effect of ICOB 1.3.10 R is to apply these minimum provisions to firms in respect of their insurance mediation activities passported under the IMD if other EEA States have not implemented articles 12 and 13 of the IMD for those activities.

  3. (3)

    Firms are reminded that insurers have passporting rights under the Insurance Directives but not under the IMD, and so ICOB 1.3.10 R does not apply to insurers.