MCOB 1.3 General application: where?

Except as set out in this section, MCOB applies if the customer of a firm carrying on home finance activities2 is resident in:

1. (1)

   the United Kingdom; or

2. (2)

   another EEA State where7 the activity is carried on from an establishment maintained by the firm (or its appointed representative) in the United Kingdom;

at the time that the home finance activity2 is carried on.

1. (1)

   7The provisions of MCOB listed in MCOB 1.3.1AR(2) apply to a UK firm where it carries on MCD credit intermediation activity for a customer who is resident in another EEA State through an establishment maintained by the firm in that State.

2. (2)

   The provisions mentioned in MCOB 1.3.1AR(1) are:

   1. (a)

      MCOB 2A.1.1R(2);

   2. (b)

      MCOB 2A.1.4R;

   3. (c)

      MCOB 2A.2.1R and 2A.2.2G; and

   4. (d)

      MCOB 7.6.28R.

[Note: article 34(2) of the MCD]

1. (1)

   7The application of MCOB to an incoming EEA firm that is an MCD credit intermediary is modified to the extent necessary to be compatible with European law.

2. (2)

   MCOB 1.3.1BR(1) overrides every other rule in this sourcebook.

[Note: article 34 of the MCD]

The territorial scope of MCOB 3A Financial promotions and communications with customers) is set out in MCOB 3A.1.13R to MCOB 3A.1.16R (Territorial scope and Exceptions to territorial scope),6 rather than in this section.

This sourcebook does not apply to an incoming ECA provider acting as such.3

1. (1)

   The rules in (2) do not apply to a firm with respect to a regulated mortgage activity or a home purchase activity2 exclusively concerning a distance contract if the following conditions are satisfied:

   2
   1. (a)

      the firm carries on the activity from an establishment maintained by the firm in an EEA State other than the United Kingdom; and

   2. (b)

      either the EEA State:

      1. (i)

         has implemented the Distance Marketing Directive3; or

         3
      2. (ii)

         has obligations in its domestic law corresponding to those provided for by the Distance Marketing Directive3;

         3

      and, in either case, with the result that the obligations provided for by the Distance Marketing Directive3 (or corresponding obligations) are applied by that State when the firm carries on that activity; and

   3. (c)

      the firm is a national of an EEA State or a company or firm mentioned in article 544 of the Treaty.

      4
2. (2)

   The rules which do not apply are:

   1. (a)

      initial disclosure requirements in MCOB 4.4A5 (in respect of regulated mortgage contracts) and MCOB 4.10 (in respect of home purchase plans);2

      525
   2. (b)

      MCOB 4.5 (Additional disclosure for distance mortgage mediation contracts and distance home purchase mediation contracts 2with consumers3);

      3
   3. (c)

      MCOB 4.6 (Cancellation of distance mortgage mediation contracts) and distance home purchase mediation contracts)2;

   4. (d)

      MCOB 5 (Pre-application disclosure);

   5. (e)

      MCOB 6 (Disclosure at offer stage);

   6. (f)

      MCOB 7.6.7 R to MCOB 7.6.17 R (Further advances);

   7. (g)

      MCOB 8.3 (Application of rules in MCOB 4) to the extent that it applies 5MCOB 4.4A5 to MCOB 4.6;

   8. (h)

      [deleted]2

      2
   9. (i)

      MCOB 9.3 (Pre-application disclosure);

   10. (j)

       MCOB 9.4 (Content of illustrations); and

   11. (k)

       MCOB 9.5 (Disclosure at offer stage for equity release transactions).2

       2