COBS 15 cancellation rules updated

The Financial Conduct Authority updated the COBS 15 Cancellation chapter of its Handbook on 6 April 2026, including the table of cancellable contracts and cancellation periods¹. The chapter states: "COBS 15 Cancellation was last updated on 06/04/2026"¹. A future version is listed for 25/10/2027¹. The FCA has not reported what changed in the text, so the amendments themselves have not been described.

Under COBS 15.2.1 R, dated 6 April 2026, a consumer has a right to cancel the following contracts with a firm²:

Contract	Cancellation period
Life and pensions: life policy (including pension annuity, pension policy or within a wrapper); contract to join a personal pension scheme or stakeholder pension scheme; pension contract; contract for a pension transfer; contract to vary an existing personal or stakeholder pension scheme by first exercising an income withdrawal option	30 calendar days
Lifetime ISA (advised but not at a distance): non-distance contract to open or transfer a lifetime ISA	30 calendar days
Cash deposit ISA	14 calendar days
Non-life/pensions (advised but not at a distance): non-distance contract to buy units in a regulated collective investment scheme, open or transfer a child trust fund, open or transfer an ISA other than a lifetime ISA, or for an Enterprise Investment Scheme	14 calendar days
Non-life/pensions (at a distance): distance contract relating to accepting deposits, designated investment business or issuing electronic money	14 calendar days

The lifetime ISA and advised non-distance rights arise only following a personal recommendation or ready-made suggestion of the contract, by the firm or any other person². For a life policy effected when opening or transferring a wrapper, the 30 calendar day right applies to the entire arrangement; for a unit bought when opening or transferring a wrapper or pension wrapper, the 14 calendar day right applies to the entire arrangement². Where the same transaction attracts more than one right to cancel, the firm should apply the longest period applicable¹.

The cancellation period begins either from the day of the conclusion of the contract, except for life policies where it begins when the consumer is informed the contract has been concluded, or from the day the consumer receives the contractual terms and conditions and any other required pre-contractual information, if later¹. A consumer need not give any reason for cancelling¹. If a firm does not give the required information about the right to cancel, the contract remains cancellable and the consumer will not be liable for any shortfall¹.

"If the same transaction attracts more than one right to cancel, the firm should apply the longest cancellation period applicable."

FCA Handbook, COBS 15.2.2 G¹

The exemptions annex, also updated on 6 April 2026, sets out where no right to cancel applies³. These include non-distance life policies or pension contracts that are pension fund management policies, relate to securing benefits under a defined benefits pension scheme, run for six months or less, or are effected by trustees or an employer in certain circumstances; contracts where the consumer is habitually resident outside the UK and not present in the UK when signing³. There is no right to cancel a contract to join a SIPP whose performance has been fully completed by both parties at the consumer's express request before cancellation is exercised³. For pension transfers, certain pension annuities and first income withdrawals, the right to cancel is replaced with a pre-contract right to withdraw the consumer's offer of at least 14 calendar days, with the combined period at least 30 calendar days³. For an EIS or ISA that is not a lifetime ISA, the right to cancel is replaced with a seven calendar day pre-contract right to withdraw; for a lifetime ISA, 14 calendar days³.

Why it matters for households

The chapter governs when people can back out of life policies, pensions, ISAs and other retail investments, and how long they have to do so. The periods run from the conclusion of the contract or from receipt of the terms and pre-contractual information, whichever is later, so the deadline can depend on when paperwork arrives¹. Firms must disclose the existence of the right, its duration and the conditions for exercising it, including amounts the consumer may be required to pay, in good time before or immediately after the consumer is bound, in a durable medium². Where a firm facilitates adviser charges or consultancy charges, it must say whether any refund will include them and that the consumer may be liable for outstanding charges². On cancellation, the firm must return sums received within 30 calendar days, and the consumer may have to pay for the service actually provided and for losses caused by market movements¹. Record keeping runs indefinitely for pension transfers, pension opt-outs and FSAVCs, at least five years for life policies, pension contracts, personal pension schemes, stakeholder pension schemes and lifetime ISAs, and at least three years otherwise¹.