FS14/1: Feedback Statement on FSA CP12/13 Solvency II – COBS rule changes

In this Feedback Statement we report on the main conduct issues arising from FSA Consultation Paper 12/13: Transposition of Solvency II part 2.

Why are we publishing this paper?

The Solvency II Directive is primarily about ensuring adequate protection for policyholders and beneficiaries. The Omnibus II agreement in Europe now means that Solvency II will need to be transposed into UK rules/regulations by March 2015 and firms will need to comply from 1 January 2016.

The FCA is following through on the changes proposed by the FSA to With-Profits (COBS 20) and Unit Linked (COBS 21) business in CP12/13.

FS14/1 Feedback Statement on FSA CP12/13 Solvency II – COBS rule changes

Who should read this paper?

The paper will be of primary interest to all insurance firms within the scope of Solvency II. It will also be of some interest to non-directive firms, and otherwise out-of-scope Solvency II firms. It may be of interest to investment firms, representative trade bodies, business and financial advisers, and consultants.

Retail and other insurance policyholders with savings business may wish to take note of the general content of this paper.

Next steps

The FCA intends to make all the rule changes it is required to make in connection with Solvency II early in 2015. The changes to the rules will come into force from 1 January 2016. The PRA will be handling feedback and making rules in due course on prudential aspects.

Please send any enquiries or comments on this paper to fca-fs14-1@fca.org.uk.

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