MCOB 1 Annex 3 Summary of the application of the chapters of MCOB

This annex belongs to MCOB 1.2.8 G and summarises the application of the various chapters of MCOB to firms that carry on regulated mortgage activities and firms that communicate or approvequalifying credit promotions. For the detailed application of each chapter, see the application rule at the start of that chapter.

MCOB 2 (Conduct of business standards: general)

(1) The whole chapter applies to a mortgage lender; a mortgage administrator; a mortgage adviser and a mortgage arranger when it carries on a regulated mortgage activity;

(2) MCOB 2.5, MCOB 2.6, MCOB 2.7, and MCOB 2.8 apply to a firm that communicates or approves a qualifying credit promotion.

MCOB 3 (Financial promotion)

The whole chapter applies to a firm when it communicates or approves a qualifying credit promotion.

MCOB 4 (Advising and selling standards)

The whole chapter applies to a mortgage adviser; the whole chapter except for MCOB 4.6 and MCOB 4.7 applies to a mortgage lender and the whole chapter except for MCOB 4.7 applies to a mortgage arranger.

The application of MCOB 4 for a regulated lifetime mortgage contract is replaced by MCOB 8 (Lifetime mortgages: advising and selling standards).

MCOB 5 (Pre-application disclosure)

The whole chapter applies to a mortgage lender; mortgage administrator; mortgage adviser and mortgage arranger when it:

(1) makes a personal recommendation about a particular regulated mortgage contract to a customer; or1

(2) provides information to a customer that is specific to the amount that the customer wants to borrow on a particular regulated mortgage contract, including information provided in response to a request from a customer; or

(3) provides the means for a customer to make an application to it;

in connection with entering into or varying a regulated mortgage contract provided by a mortgage lender.

The application of MCOB 5 for a regulated lifetime mortgage contract is replaced by MCOB 9 (Lifetime mortgages: product disclosure).

The application of MCOB 5 for the variation of a regulated mortgage contract is replaced by MCOB 7 (Disclosure at start of contract and after sale).

MCOB 6 (Disclosure at the offer stage)

The whole chapter applies to a mortgage lender when it makes an offer to a customer with a view to entering into a regulated mortgage contract or to varying an existing regulated mortgage contract by adding or removing a party, making a further advance or switching all or part of the regulated mortgage contract from one type of interest rate to another.

In relation to regulated lifetime mortgage contracts, MCOB 6 is replaced by MCOB 9 (Lifetime mortgages: product disclosure).

MCOB 7 (Disclosure at start of contract and after sale)

(1) The whole chapter applies to a mortgage lender;

(2) MCOB 7.1- MCOB 7.3.3 and MCOB 7.5 - MCOB 7.7.4G apply to a mortgage administrator;

(3) MCOB 7.1 - MCOB 7.3.3R and MCOB 7.6.7R - MCOB 7.7.4G apply to a mortgage adviser; and

(4) MCOB 7.1 - MCOB 7.3.3R and MCOB 7.6.7R - MCOB 7.7.4G apply to a mortgage arranger;

In relation to regulated lifetime mortgage contracts, MCOB 7 is replaced by MCOB 9 (Lifetime mortgages: product disclosure).

MCOB 8 (Lifetime mortgages: advising and selling standards)

The whole chapter except for MCOB 8.5 applies to a mortgage lender.

The whole chapter applies to a mortgage adviser.

The whole chapter except for MCOB 8.5 applies to a mortgage arranger.

MCOB 9 (Lifetime mortgages: product disclosure)

MCOB 9.1-9.7 apply to a mortgage lender.

MCOB 9.1-9.4 and MCOB 9.8 apply to a mortgage administrator.

MCOB 9.1-9.4 apply to a mortgage adviser.

MCOB 9.1-9.4 apply to a mortgage arranger.

MCOB 10 (Annual percentage rate)

The whole chapter applies to a firm which, under rules elsewhere in MCOB, is required to calculate an annual percentage rate of charge (APR)).

MCOB 11 (Responsible lending)

The whole chapter applies to a mortgage lender when it enters into or makes a further advance on a regulated mortgage contract with a customer.

MCOB 12 (Charges)

(1) The whole chapter applies to a making arrangements with a view to deals in investments when it carries on a regulated mortgage activity;

(2) MCOB 12.1, MCOB 12.2 and MCOB 12.5.2R apply to a mortgage adviser and a mortgage arranger;

(3) MCOB 12.1, MCOB 12.2, MCOB 12.4 and MCOB 12.5.2R apply to a mortgage administrator and a firm that was a mortgage lender or mortgage administrator before the sale of a repossessed property.

MCOB 13 (Arrears and repossessions)

(1) The whole chapter applies to a mortgage administrator and a firm that was the mortgage administrator before the sale of a repossessed property.

(2) MCOB 13.1-13.3 (except MCOB 13.3.9R and MCOB 13.3.10G) apply to a mortgage lender and a firm that was the mortgage lender before the sale of a repossessed property.