Pure Protection - Financial Conduct Authority

Pure Protection

Published: 28/03/2013

Sales of pure protection under the Conduct of Business sourcebook


Do the RDR rules affect you if you sell  pure protection under COBS?
  • The RDR adviser charging rules don’t apply directly to your sales, so commission isn’t banned for advised sales.
  • But there are new requirements if the sale of pure protection is ‘associated with’ investment advice.
When will these new requirements come into force?
  • They come into force on 31 December 2012, at the same time as the main RDR rules.
What new things will I have to do in future?
  • You will need to decide whether a particular sale is ‘associated with’ investment advice.  We included guidance on this in the new section 4.6 of the Insurance Conduct of Business sourcebook.  You may also find it helpful to look at PS10/13
  • If you decide that a sale of pure protection is associated with investment advice, you need to tell the customer how you’re being paid for the pure protection sale and also the amount of commission you will get from the provider.


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