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  • COB 7.5 COB 7.5 Authorised Firm's Duty of Disclosure

    • COB 7.5 Guidance

      If an Authorised Firm is required to provide information to a Client or potential Client under this section or any other section in this Chapter before providing a service or doing anything, then the information should be provided in good time before providing the service or doing the thing so that the Client has sufficient time to make an informed decision.

      Derived from DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

    • COB 7.5.1

      (1) An Insurer, Insurance Intermediary or Insurance Manager must, subject to (3), disclose to a Client:
      (a) the name and address of the insurer or insurers effecting the Contract of Insurance;
      (b) its own name and address where different; and
      (c) contact details of the Person to whom a claim is to be notified.
      (2) The disclosures in (1) must be made before effecting or placing the Contract of Insurance, or as soon as reasonably practicable thereafter.
      (3) An Insurance Manager is not required to make the disclosure under (1) to an insurer to whom it provides Insurance Management services.
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
      [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

    • COB 7.5.2 COB 7.5.2

      (1) An Insurance Intermediary or Insurance Manager must, subject to (3), disclose to a Clientif:
      (a) it has a direct or indirect holding representing 10% or more of the voting rights or capital in an insurer; or
      (b) an insurer, or its parent undertaking, has a direct or indirect holding representing 10% or more of the voting rights or capital in the Insurance Intermediary or Insurance Manager.
      (2) The disclosures in (1) must be made before providing Insurance Intermediation or Insurance Management services to the Client.
      (3) An Insurance Manager is not required to make a disclosure under (1) to an insurer to whom it provides Insurance Management services.
      Derived from DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

      • COB 7.5.2 Guidance

        An Insurance Intermediary or Insurance Manager is required to disclose the information under COB Rule 7.5.1(1) and COB Rule 7.5.2(1) to any Policyholder with whom it interacts when carrying out its Insurance Intermediation or Insurance Management activities.

        Derived from DFSA DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

    • COB 7.5.3 COB 7.5.3

      (1) An Insurance Intermediary must, before providing any Insurance Intermediation service to a Person as a Retail Client, disclose whether any advice or information is or will:
      (a) be provided on the basis of a fair analysis of the market;
      (b) not be provided on the basis of a fair analysis of the market because of any contractual agreement it has with any particular insurer or insurers to deal with only their products; or
      (c) even if there are no contractual agreements of the type referred to in (b), not be provided on the basis of a fair analysis of the market.
      (2) If (1) (b) or (c) applies, the Insurance Intermediary must, if requested by the Retail Client, provide to that Client a list of insurers with whom it deals or may deal in relation to the relevant Contracts of Insurance.
      (3) An Insurance Intermediary must, before providing any Insurance Intermediation service to a Client, disclose to that Client whether it acts on behalf of an insurer or any other Person or acts independently on behalf of Clients.
      Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
      [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

      • COB 7.5.3 Guidance

        1. An Insurance Intermediary should not represent itself as providing advice or information on the basis of a fair analysis of the market under COB Rule 7.5.3(1) unless it has considered a sufficiently broad range of Contracts of Insurance and based its decision on an adequate analysis of those contracts.
        2. Insurance Brokers act for Clients who are Policyholders. In doing so, they may claim under COB Rule 7.5.3(3) that they act 'independently' for the Clients.
        3. The DFSA expects an Insurance Broker which holds itself out to a Client as acting 'independently' for the Client to be able to demonstrate its independence to the DFSA. Factors that the DFSA would take into account when assessing if an Insurance Broker has acted independently include whether that broker:
        (a) has assessed a sufficiently large number of insurance products available on the market, and those products are sufficiently diverse in terms of their types and the issuers, to be able to suit the Client's needs and objectives;
        (b) is free to select insurance products from a sufficiently large number of insurers — for example, if a broker has close links with insurers, or exclusivity clauses in arrangements with insurers whose products they can select, the broker may not be able to claim it is independent; and
        (c) has disclosed clearly to the Client all commissions and other economic benefits it or a Group member receives from insurers with whom it places insurance.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
        [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]