Saturday 10th October 2015 8:39pm
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Not only will the new system deliver all of the required compliance elements for GAP sales, it also sees the start of the seamless integration with our Consumer Credit platform. Two big wins for ITC Network members!
On the 1st of September the FCA rules around the sale of GAP Insurance are changing.
Whilst the new rules are unlikely to have a significant impact on sales it will alter the way in which you sell GAP. With the introduction of prescribed information early in the sales process and an enforced delay after this information has been given...
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6A.1.4 R (1) Before a GAP contract is concluded, a firm must give the customer the following information:
(a) the total premium of the GAP contract, separate from any other prices;
(b) the significant features and benefits, significant and unusual exclusions or limitations, and cross-references to the relevant policy document provisions;
(c) whether or not the GAP contract is sold in connection with vehicle finance, that GAP contracts are sold by other distributors;
(d) the duration of the policy;
(e) whether the GAP contract is optional or compulsory;
(f) when the GAP contract can be concluded by the firm, as described in ICOBS 6A.1.6R and ICOBS 6A.1.7R; and
(g) the date the information in (a) to (f) is provided to the customer.
(2) This information must be communicated in a clear and accurate manner and in writing or another durable medium, and made available and accessible to the customer.
(3) This information must be drawn to the customer's attention and must be clearly identifiable as key information that the customer should read.
ICOBS 6A.1.6R - Except as specified below a GAP contract cannot be concluded by a firm until at least 2 clear days have passed since the firm complied with all of the above requirements
6A.1.7 R A firm can conclude a GAP contract the day after providing the information above to a customer if the customer:
(1) initiates the conclusion of the GAP contract; and
(2) consents to the firm concluding the GAP contract earlier than provided for in ICOBS 6A.1.6R, and confirms that they understand the restriction in ICOBS 6A.1.6R.