The Financial Services Regulations 2004

Financial contracts

The Financial Services Regulations cover the sale of most financial services that take place at a distance, such as online or over the phone. 

It doesn't matter whether the sale or contract was made directly with the financial services provider or made through an intermediary, such as an insurance broker. Both will be covered by the Financial Services Regulations. 

Cancelling a financial contract

For most services the regulations give consumers 14 days to cancel the contract starting from the date of purchase. 

There are a few exceptions though. 

For pension products, you get 30 days from when you entered into the contract, and for life insurance you have 30 days from when you're told the provider has agreed to accept you for cover. 

If you want to cancel, you can do so in writing, by fax, by email, to a website address or portal that the provider has given, or verbally if the provider has said cancellation can be made in that way. 

You should get a refund within 30 calendar days of cancelling.

If you agreed with the provider that the service could start then the provider can make a deduction for any services it has provided you with up to the point that you cancel. 

Exceptions to cancelling

There are some financial products where the right to cancel doesn't apply. 

Examples of this include financial services where the price of that service depends on fluctuations in the financial markets beyond the control of the product provider, and where you have used the service in full before you cancelled.