What are the new high-level standards?
These are new rules reflecting our Principles for Businesses and, in the case of product disclosure and claims handling, they set out what we think particular principles mean for insurance. They replace the previous, more-detailed rules, so you have more flexibility over how you meet our requirements, although the overall standard remains the same. There are three high-level standards: Suitability – in ICOBS 5.3.1R. This says a firm must take reasonable care to ensure the suitability of its advice for any customer who is entitled to rely upon its judgment, and reflects the wording of Principle 9. Detail, in the form of guidance, applies only to the sale of pure protection contracts and PPI. Product disclosure – in ICOBS 6.1.5R. This explains what we think Principle 6 (treating customers fairly) and Principle 7 (clear, fair and not misleading information) require for product disclosure. It says a firm must take reasonable steps to ensure a customer is given appropriate information about
