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 requirements if the sale of pure protection is ‘associated with’ investment advice.
What do I need to do?
You will need to decide whether a particular sale is ‘associated with’ investment advice. We included guidance on this in 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.