Which FCA sourcebook is applicable to a whole of life policy?

The correct answer is COBS, which stands for the Conduct of Business Sourcebook. This sourcebook provides rules and guidance for firms conducting regulated activities, ensuring that they treat customers fairly and provide sufficient transparency and information. Whole of life policies fall under the insurance products that require firms to comply with these conduct of business rules to ensure customers are adequately informed about their policies, including their features, benefits, and any associated risks.

COBS specifically addresses issues such as clarity of communication with policyholders, suitability assessments, and the handling of complaints, which are crucial when offering complex products like whole of life insurance. This regulation helps to maintain high standards in the financial services industry, protecting consumers and enhancing trust.

The other sourcebooks mentioned serve different purposes. GENPRU relates to capital resources and prudential standards, SYSC focuses on systems and controls that firms must maintain, and APER deals with serious breaches of conduct by individuals within the firms. While important, these other sourcebooks do not directly address the specifics of managing conduct around selling whole of life policies to customers.