What distinguishes COBS from ICOBS rules in financial regulation?

The distinction between COBS (Conduct of Business Sourcebook) and ICOBS (Insurance Conduct of Business Sourcebook) is important in understanding the regulatory framework for different types of financial products. COBS specifically addresses conduct rules governing investment products, including shares, bonds, and other financial instruments. This body of rules is designed to ensure that the treatment and conduct of businesses that sell investment products are fair, transparent, and suitable for consumers' needs.

In contrast, ICOBS focuses exclusively on insurance products, particularly their conduct of business regulations. While ICOBS encompasses protection policies, such as life insurance and income protection, it does not cover investment products that fall under COBS. This clear delineation enables regulatory authorities to apply appropriate standards and requirements to different types of financial offerings, ensuring that consumers receive suitable products and services based on their specific categories.

Therefore, the correct choice highlights this distinction, emphasizing that COBS is relevant to investment products while ICOBS caters specifically to insurance products.