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ICOB 8.3 Disclosure requirements

ICOB 8.3.1R

An insurance intermediary must provide a retail customer with:

  1. (1)

    the information in ICOB 8.3.3 R; and

  2. (2)

    the full terms of the distance non-investment mediation contract;

in a durable medium in good time before the conclusion of the distance non-investment mediation contract, unless an exemption in ICOB 8.3.6 R applies or the information has already been provided under the rules in ICOB 4.

ICOB 8.3.2G

For the purposes of ICOB 8.3.1 R, information will be provided 'in good time' if provided in sufficient time to enable the retail customer to consider properly the services on offer.

ICOB 8.3.3R

Status disclosure requirements for distance non-investment mediation contracts

This table belongs to ICOB 8.3.1 R(1)

1.

The name and address of the insurance intermediary, and his main business.

2.

Where relevant, the name and address of the representative of the insurance intermediary established in the retail customer's EEA State of residence.

3.

Where the retail customer's dealings are with any professional other than the insurance intermediary, the name and address of the professional and the capacity in which he is acting with respect to the retail customer.

4.

The insurance intermediary's statutory status (in accordance with GEN 4 Annex 1 (Statutory status disclosure)), and that this can be checked on the FSA's Register by visiting the FSA's website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234.

5.

A description of the main characteristics of the distance non-investment mediation contract.

6.

The total price to be paid by the retail customer, including all related fees, charges and expenses, and all taxes paid via the insurance intermediary (or, where an exact price cannot be indicated, the basis for the calculation, enabling the retail customer to verify it).

7.

The possibility that other taxes, costs or both may exist which are not paid through or imposed by the insurance intermediary.

8.

Any limitations of the period for which the information provided is valid.

9.

The arrangements for payment and performance.

10.

If such an additional cost is charged, the specific additional cost of using the means of distance communication.

11.

The existence or absence of a right to cancel in accordance with ICOB 6.2.1 R, and where there is such a right:

(a)

the duration of the cancellation period in accordance with ICOB 6.2.2 R;

(b)

the conditions for exercising the right to cancel, including information on the amount which the retail customer may be required to pay, in accordance with ICOB 6.3 to ICOB 6.4;

(c)

the consequences of not exercising the right to cancel; and

(d)

how the right to cancel may be exercised, including the address to which the cancellation notice should be sent.

12.

The minimum duration of the distance non-investment mediation contract.

13.

Information on any rights which the insurance intermediary or the retail customer may have to terminate the contract early or unilaterally, including any penalties imposed by the contract in such cases.

14.

Details of:

(a)

the EEA State or States whose laws are taken by the insurance intermediary as a basis for the establishment of relations with the retail customer prior to the conclusion of the distance non-investment mediation contract;

(b)

any contractual clause on law applicable to the distance non-investment mediation contract, any competent court, or both; and

(c)

the language in which the contract is supplied, and in which the insurance intermediary will communicate during the duration of the distance non-investment mediation contract.

15.

The information contained in ICOB 4.2.8 R (8) and (9) on complaints and compensation that applies in respect of retail customers.
ICOB 8.3.4G

A description of the main characteristics of a distance non-investment mediation contract (ICOB 8.3.3 R(5)) includes the duration for which that service or services will be provided and the type of services offered. Examples include arranging a sale, advising, handling mid-term adjustments and assisting in the making of a claim.

ICOB 8.3.5R

All information provided to a retail customer in accordance with ICOB 8.3.1 R must be in English, unless the customer requests it to be, and the firm agrees to it being, in another language.

ICOB 8.3.6R

The following exemptions from ICOB 8.3.1 R apply:

  1. (1)

    Exemption: telephone sales

    1. (a)

      This exemption applies if the service is being provided on the telephone and the retail customer wishes to enter into a distance non-investment mediation contract.

    2. (b)

      Provided the retail customer gives his explicit consent to receiving only limited information, the insurance intermediary may proceed on the basis of at least the following information:1

      1. (i)

        the identity of the person in contact with the retail customer and his link with the insurance intermediary;

      2. (ii)

        the information required by ICOB 8.3.3 R(5), (6), (7) and (11); and

      3. (iii)

        that other information is available on request, and the nature of that information.

      If the retail customer does not give his explicit consent to receiving limited information, and the parties wish to proceed by telephone, the insurance intermediary must prior to the conclusion of the contract provide all of the information required by ICOB 8.3.1 R orally to the retail customer.1

    3. (c)

      Where (b) applies, the insurance intermediary must provide the information required by ICOB 8.3.1 R in a durable medium immediately after the conclusion of the distance non-investment mediation contract.

  2. (2)

    Exemption: certain other means of distance communicationThis exemption applies if the contract is concluded at the retail customer's request using a means of distance communication (other than telephone) which does not enable provision of the information referred to in ICOB 8.3.1 R in a durable medium before the conclusion of the contract. In that case, the insurance intermediary does not need to provide the information in ICOB 8.3.1 R before conclusion of the contract but must provide it to the retail customer in a durable medium immediately after the conclusion of the distance non-investment mediation contract.

  3. (3)

    Exemption: successive operations or separate operations of the same nature under an initial service agreementThis exemption applies if the insurance intermediary has an initial service agreement with the retail customer and the contract is in relation to a successive operation or a separate operation of the same nature under that agreement. In this case, the information referred to in ICOB 8.3.1 R applies to the initial service agreement and not to the successive operations or separate operations of the same nature.

  4. (4)

    Exemption: other successive or separate operationsThis exemption applies if:

    1. (a)

      the insurance intermediary has no initial service agreement with the retail customer; and

    2. (b)

      the insurance intermediary has performed an operation with the retail customer within the last year; and

    3. (c)

      the distance non-investment mediation contract is in relation to a successive operation or separate operation of the same nature.