Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

ICOBS 4.2 Additional requirements for protection policies for insurance intermediaries and insurers

Application: what?


This section applies in relation to a pure protection contract or a payment protection contract for a consumer.

Ensuring customers can make an informed decision





Disclosing the limits of the service provided

  1. (1)

    In a sale that does not involve a personal recommendation, a firm must take reasonable steps to ensure a customer (C) understands that C is2 responsible for deciding whether a policy meets C’s2 demands and needs.

  2. (2)


  3. (3)

    If a firm anticipates providing, or provides, information on any main characteristic of a policy orally during a non-advised sale, taking reasonable steps includes explaining the customer's responsibility orally.

  4. (4)

    A policy's main characteristics include its significant benefits, its significant exclusions and limitations, its duration and price information.

Status disclosure for insurers

  1. (1)

    Prior to the conclusion of an initial contract and, if necessary, on its amendment or renewal, an insurer must disclose to the customer at least:

    1. (a)

      the statutory status disclosure statement (see GEN 4);

    2. (b)

      whose policies it offers; and

    3. (c)

      whether it is providing a personal recommendation or information.

  2. (2)



Insurers are reminded that they are not permitted to carry out business which does not directly arise from their insurance business2 (see the restriction of business in INSPRU 1.5.13R and rule 9 of the PRA Rulebook2: Solvency II firms: Conditions Governing Business).