Reset to Today

To access the FCA Handbook Archive choose a date between 1 January 2001 and 31 December 2004.

Content Options:

Add to favourites

View Options:

More Resources:

External link Handbook Publications

Alternative versions

  2. Point in time
    2012-03-31

MCOB 2.5 Reliance on others

Purpose

MCOB 2.5.1GRP

Principle 2 requires a firm to conduct its business with due skill, care and diligence. MCOB 2.5 indicates the extent to which firms that carry on home finance activities1 and that communicate or approve a financial promotion1 can meet this requirement by relying on others.

11

When firms can rely on others

MCOB 2.5.2RRP

A firm will be taken to be in compliance with any rule in MCOB that requires a firm to obtain information to the extent that the firm can show that it was reasonable for it to rely on information provided to it by another person.

MCOB 2.5.3ERP
  1. (1)

    In relying on MCOB 2.5.2 R, a firm should take reasonable steps to establish that the other person providing the information is:

    1. (a)

      not connected with the firm; and

    2. (b)

      competent to provide the information.

  2. (2)

    Compliance with (1) may be relied on as tending to establish compliance with MCOB 2.5.2 R.

  3. (3)

    Contravention of (1) may be relied on as tending to establish contravention of MCOB 2.5.2 R.

MCOB 2.5.4RRP
  1. (1)

    Any information which a rule in MCOB requires to be sent to a customer may be sent to another person on the instruction of the customer, so long as the recipient is not connected with the firm.

  2. (2)

    There is no need for a firm to send information to a customer where it has taken reasonable steps to establish that this has been or will be supplied by another person.