Transitional Provisions and Schedules

Part

ICOBS Insurance: Conduct of Business sourcebook

Chapter

Transitional Provisions and Schedules

Printed on: 11/05/2025

Rulebook at: 01/01/2013

Transitional Provisions and Schedules

ICOBS TP 1

Transitional Provisions

Consolidated Motor Insurance Directive

In relation to a claim by an injured party received by a motor vehicle liability insurer or its claims representative on or before 10 June 2007, the motor vehicle liability claims handling rules (see ICOBS 8.2.6 R to ICOBS 8.2.11 G) only apply if the claim results from an accident occurring in an EEA State other than the injured party's EEA State of residence which was caused by the use of a vehicle insured through an establishment in, and normally based in, an EEA State other than the injured party's EEA State of residence.

Initial disclosure document

Expired

Series of events

If, for a connected travel insurance intermediary, the application of any provision in this sourcebook is dependent on the occurrence of a series of events, the provision applies with respect to the events that occur on or after 1 January 2009.

Employers' liability insurance: disclosure by insurers

Expired

For the purposes of the report prepared by an auditor required under ICOBS 8.4.4R (1)(c):

(1)

a firm will not be regarded as having breached ICOBS 8.4.4R (1)(c) if the firm has obtained and submitted to the FSA an independent assurance report addressing the accuracy and completeness of the employers' liability register following discussions with its auditors as to the form and content of the report, even if that report does not comply with ICOBS 8.4.4C R;

(2)

notwithstanding (1), a firm will be deemed to have complied with ICOBS 8.4.4R (1)(c) to the extent that the report obtained and submitted includes a detailed account of the procedures performed and the results of those procedures including, as a minimum:

(a)

a description of the underlying records from which the register is extracted;

(b)

a description, and the results, of the tests aimed at addressing the risk that the register is not completely and accurately compiled from data held on the firm's underlying records, and of the method of selecting the sample and the rationale for its being representative, including the following:

(i)

a reconciliation of the number of, and the identity of, policies for which information is included in the register against the number of, and the identity of, relevant policies for which details are contained in the underlying records and testing reconciliations to ensure that reconciling items are explained and appropriate;

(ii)

analysis of a representative sample of relevant employers liability claims made to the firm to ensure claims made have been entered onto the register; and

(iii)

analysis of a representative sample of policies in relation to which information appears on the register to ensure that all required information is included and that the included information is accurate compared to the information contained in the underlying records;

(c)

for the purposes of (b)(ii) and (iii), unless (d) applies, the firm must adopt the following approach to determining a representative sample in relation to each set of claims made, or policies, for which the same systems and controls are used in producing information for the register:

(i)

for each set of claims made or policies, a sample may be regarded as representative if the ratio of the minimum number in the sample to 25 is equal to the ratio of the square root of the total number of claims made or policies within the set to the square root of 1000, subject to a minimum of 10 policies or claims made; and

(ii)

for sets where the information required to be placed on the register relates to fewer than 10 policies, the sample may be regarded as representative if it includes all of those policies;

(d)

where the firm and the auditor consider that the approach to determining a representative sample set out in (c)(i) to (iii) are inappropriate having regard to the firm's particular circumstances, the report must set out the reasons for selecting a different representative sample by reference to the methods set out in (c); and

(e)

any other procedures agreed between the firm and the auditor as deemed necessary to be carried out by the auditor to test the extraction of information from underlying records by the firm for the purposes of ICOBS 8.4.4R (1)(a) tailored as appropriate to correspond to the firm's particular circumstances and the results of those procedures.

TP 8BR(1) applies until 1 August 2012.
TP 8BR(2) applies until 1 August 2012 for all firms, and thereafter until 1 August 2014 or, if earlier, the date upon which the firm first obtains a director's certificate which is not a qualified director's certificate.

The requirement set out in 8BR(2) is for what is commonly referred to by auditors as 'agreed upon procedures' under which the auditor is not required to provide an opinion or express assurance. All firms will be able to provide reports based on 'agreed upon procedures', instead of a limited assurance engagement, up until 1 August 2012. After that only firms which obtain qualified director's certificates will be able to use agreed upon procedures, and only until (and including) 1 August 2014, or, if earlier, the date upon which they first obtained a non-qualified director's certificate.

Expired

(1)

For the purposes of ICOBS 8.4.4R (1)(a), to the extent that a firm is unable to include information required under ICOBS 8.4.4R (2)(b)(ii) solely because of a failure by a third party outside the firm's control, then provided that the firm has used, and continues to use, best endeavours to obtain that information, other than refusing to provide cover to an employer solely because it has not provided the information requested, the firm will be deemed to comply with the requirements in ICOBS 8.4.4R (2)(b)(ii) and the corresponding parts of ICOBS 8 Annex 1.

(2)

For the purposes of ICOBS 8.4.4R (1)(b) and (1)(c), a firm must treat references to compliance with ICOBS 8.4.4R (1)(a), ICOBS 8.4.4R (2) and ICOBS 8 Annex 1 as if TP 9AR did not apply.

The effect of TP 9AR(1) is that a firm will not be in breach of the requirements to include relevant information on its register to the extent that it is unable to obtain that information from third parties over which it does not exercise control. However, in order to be able to rely on this provision the firm will need to be able to demonstrate that it has used its best endeavours to obtain the information from the third party over the relevant time period and continues to do so, other than by refusing to provide cover to that employer solely for failure to provide relevant information. The effect of TP 9AR(2) is that even though the firm may not be regarded as being in breach of the underlying requirements in ICOBS 8.4.4R (1)(a), the director's certificate and report prepared by an auditor will need to be addressed at the level of compliance of the register as if TP 9AR(1) did not provide any transitional relief from the firm being in breach.

TP 9AR(1) and (2) and 9BG apply until 1 April2013.

Expired

10A

Expired

For the purposes of ICOBS 8.4.11R (2)(a), ICOBS 8.4.11R (2)(b), ICOBS 8.4.12A R, ICOBS 8 Annex 1, TP 8,TP 8B and TP 9, in relation to references to claims made in relation to policies:

(1)

for claims received by a firm prior to 1 April 2011 which have not been settled as at 1 April 2011, those claims must be treated, for the purposes of the above rules, as having been made on or after 1 April 2011, and for the purposes of the above rules, the firm must include information in the form in ICOBS 8 Annex 1.1.2 R, in accordance with and including the notes, held by the firm (with the exception of information within TP 8R(1)(d) until 1 April 2012) within three months of the date upon which the claim was settled, on or after 1 April 2011; and

(2)

if, as at 1 April 2011, a firm's systems record claims by reference to the date the claim was created in the firm's systems or the date upon which it was settled, then, notwithstanding ICOBS 8.4.12A R, that firm may treat references to the date that a claim was made as a reference to the date that the claim was created in the firm's systems, or if applicable to the firm, the date that the claim was settled.

TP 13R(2) applies until 1 April 2013.

01/10/2012

ICOBS Sch 1

Record keeping requirements

06/01/2008

Notes

The aim of the guidance in the following table is to give the reader a quick overall view of the relevant record keeping requirements.

It is not a complete statement of those requirements and should not be relied on as if it were.

06/01/2008

Handbook reference

Subject of record

Contents of record

When record must be made

Retention period

ICOBS 1 Annex 1 G, Part 2 3.1R(3)

Record of election to comply with COBS rules for pure protection policies (including amendment or reversal)

Date of election and precise description of parts of the firm's business that will comply with COBS provisions

Not specified

Indefinitely

06/01/2008

ICOBS Sch 2

Notification requirements

06/01/2008

ICOBS Sch 2.1

Handbook reference

Matters to be notified

Contents of notification

Trigger event

Time allowed

ICOBS 8.4.4 R (1)(b), ICOBS 8.4.4 R (3), ICOBS 8.4.11 R (2)(d)

A statement satisfying the requirements of ICOBS 8.4.4 R (1)(b)

Obtaining a statement satisfying the requirements of ICOBS 8.4.4 R (1)(b)

Four months from the date of the version of the register being commented on in accordance with ICOBS 8.4.4 R (3) or ICOBS 8.4.11 R (2)(d)

ICOBS 8.4.4 R (1)(c), ICOBS 8.4.4C R, ICOBS 8.4.4 R (3), ICOBS 8.4.11 R (2)(e)

A report satisfying the requirements of ICOBS 8.4.4C R

Obtaining a report satisfying the requirements of ICOBS 8.4.4C R

Four months from the date of the version of the register being reported on in accordance with ICOBS 8.4.4 R (3) or ICOBS 8.4.11 R (2)(e)

ICOBS 8.4.6 R

Whether or not business falling within ICOBS 8.4.4 R (1) is being carried out

Statement by director that, to the best of the director's knowledge, content is true and accurate, and if relevant details of the internet address at which the employers' liability register is made available, the firm's contact details and the period over which the firm or syndicate member provided cover under relevant policies.

Firms or syndicate members carry out contracts of insurance which are general insurance contracts

One month

ICOBS 8.4.6A R

That the firm has potential liability under an excess policy and satisfies the requirements and relies on the provisions in ICOBS 8 Annex 1.1.1BR

A statement that the firm has potential liability under an excess policy; satisfies the requirements and relies on the provisions in ICOBS 8 Annex 1.1.1BR

Firm relies on ICOBS 8 Annex 1.1.1BR

Prior to reliance on ICOBS 8 Annex 1.1.1BR

ICOBS 8.4.11 R

Changes to the accuracy of the contents of the notification in ICOBS 8.4.6 R (1) or ICOBS 8.4.6A R

Details of the change and of the new position

Changes to the accuracy of a notification made under ICOBS 8.4.6 R or ICOBS 8.4.6A R

Within one month of the change

01/04/2012

ICOBS Sch 3

Fees and other required payments requirements

06/01/2008

ICOBS Sch 3.1

There are no requirements for fees or other payments in ICOBS.

06/05/2008

ICOBS Sch 4

Powers exercised

06/01/2008

ICOBS Sch 4.1

The following powers and related provisions in or under the Act have been exercised by the FSA to make the rules in ICOBS:

Section 138 (General rule-making power)
Section 139(4) (Miscellaneous ancillary matters)
Section 145 (Financial promotion rules)
Section 149 (Evidential provisions)
Section 156 (General supplementary powers)
Regulation 2 of the Financial Services and Markets Act 2000 (Fourth Motor Insurance Directive) Regulations 2002 (SI 2002/2706)

06/01/2008

ICOBS Sch 4.2

The following powers in the Act have been exercised by the FSA to give the guidance in ICOBS:

Section 157(1) (Guidance)

06/01/2008

ICOBS Sch 5

Rights of action for damages

06/01/2008

ICOBS Sch 5.1

The table below sets out the rules in ICOBS contravention of which by an authorised person may be actionable under section 150 of the Act (Actions for damages) by a person who suffers loss as a result of the contravention.

06/05/2008

ICOBS Sch 5.2

If a "Yes" appears in the column headed "For private person?", the rule may be actionable by a private person under section 150 (or, in certain circumstances, his fiduciary or representative; see article 6(2) and (3)(c) of the Financial Services and Markets Act 2000 (Rights of Action) Regulations 2001 (SI 2001/2256)). A "Yes" in the column headed "Removed" indicates that the FSA has removed the right of action under section 150(2) of the Act. If so, a reference to the rule in which it is removed is also given.

06/05/2008

ICOBS Sch 5.3

The column headed "For other person?" indicates whether the rule may be actionable by a person other than a private person (or his fiduciary or representative) under article 6(2) and (3) of those Regulations. If so, an indication of the type of person by whom the rule may be actionable is given.

06/05/2008

ICOBS Sch 5.4

Rule

Right of action under section 150

For private person?

Removed?

For other person?

All rules in ICOBS with the status letter "E"

Any rule in ICOBS which prohibits an authorised person from seeking to make provision excluding or restricting any duty or liability

Yes

Any other person

ICOBS 8.2.9 R

Yes

Any other person

All other rules in ICOBS

Yes

06/05/2008

ICOBS Sch 6

Rules that can be waived

06/01/2008

ICOBS Sch 6.1

As a result of regulation 10 of the Regulatory Reform (Financial Services and Markets Act 2000) Order 2007 (SI 2007/1973) the FSA has power to waive all its rules. However, if the rules incorporate requirements laid down in European directives, it will not be possible for the FSA to grant a waiver that would be incompatible with the United Kingdom's responsibilities under those directives.

06/05/2008