COBS 7.6 COBS 7.6 Disclosure of Costs and Remuneration
An Insurer, Insurance Intermediary or Insurance Manager must provide details of the costs of each Contract of Insurance or Insurance Intermediation service or Insurance Management service offered to a Client. The disclosure required by this Rule must include any premiums, fees, charges or taxes payable by the Client, whether or not these are payable to the Authorised Person. The disclosure must be made in terms readily understandable by the Client, taking into account the knowledge held by that Client in relation to the type of insurance in question.
An Insurer or Insurance Intermediary must, where any premium is payable through a Credit Facility made available to a Retail Client, disclose any interest, profit rate or charges payable by the Client for using that facility.
An Insurer, Insurance Intermediary or Insurance Manager must ensure that it does not impose any new costs, fees or charges without first disclosing the amount and the purpose of those charges to the Client.
An Insurer, Insurance Intermediary or Insurance Manager must, on the request of any Client, disclose to that Client all commissions and other economic benefits accruing to the Authorised Person or any member of the same Group from:(a) any Insurance Intermediation business;(b) any Insurance Management business; or(c) any other business connected to or related to the provision of such business;
transacted by the Authorised Person on behalf of that Client.
The requirement to disclose the information under Rule 7.6.4 does not apply where an Insurance Intermediary acts solely on behalf of a single insurer, and this fact has been disclosed to the Client.