If your firm has sold pure protection insurance then you should have received the FSA’s ‘Dear Compliance Officer’ letter dated 29th November 2010.
This requires all firms selling pure protection contracts to undertake a review of their processes and confirm in writing to the FSA that they are meeting the oral disclosure requirements of ICOBS.
A deadline of six months was given to complete this check – which will expire at the end of May.
The FSA published a post implementation review (PIR) of the Insurance Conduct of Business Sourcebook (ICOBS) that came into effect on 6 January 2008. The review found significant failures by firms concerning oral disclosure in sales of protection
products, in particular Critical Illness Cover (CIC).
The FSA have therefore written to all firms that sell protection products to reiterate the ICOBS requirements for all firms:
Firms should:
- make appropriate oral disclosures when selling a protection product to a consumer by phone or face-to-face
- provide product information in a way which is clear, fair and not misleading; and
- be clear about the status and scope of service the firm is providing and that any advicegiven must be suitable.
All firms selling protection products are required to establish, implement and maintain
adequate policies and procedures sufficient to ensure compliance with the rules in ICOBS.
If you are unsure on the requirements and need support in this area please contact us