MCOB 4.1 Application
Who?
This chapter applies to a firm in a category listed in column (1) of the table in MCOB 4.1.2 R in accordance with column (2) of that table.
This table belongs to MCOB 4.1.1 R
(1) Category of firm |
(2) Applicable section |
MCOB 4.1 to MCOB 4.4, and MCOB 4.8 to MCOB 4.94 43 |
|
MCOB 4.1, MCOB 4.2 and MCOB 4.10 (except MCOB 4.10.5 G to MCOB 4.10.7 G). MCOB 4.3, MCOB 4.4 and MCOB 4.8 in accordance with MCOB 4.10 |
|
MCOB 4.1, MCOB 4.2, MCOB 4.5, MCOB 4.6 and MCOB 4.10.MCOB 4.3, MCOB 4.4, MCOB 4.7 and MCOB 4.8 in accordance with MCOB 4.10 |
|
As for a home purchase adviser exceptMCOB 4.10.5 G to MCOB 4.10.7 G and MCOB 4.7 do not apply |
|
What?
This chapter applies if a firm in the course of carrying on a home finance activity4:
4- (1)
makes, or anticipates making, a personal recommendation about; or
- (2)
gives, or anticipates giving, personalised information relating to;
the customer:
- (3)
entering into a home finance transaction4; or
4 - (4)
varying the terms of a home finance transaction4 entered into by the customer.
4
- (1)
MCOB 4.4 (Initial disclosure requirements) applies only in relation to varying the terms of a regulated mortgage contract entered into by the customer in any of the following ways:
- (a)
adding or removing a party;
- (b)
taking out a further advance; or
- (c)
switching all or part of the regulated mortgage contract from one interest rate to another.1
- (a)
- (2)
Otherwise, this chapter, MCOB 4, applies in relation to any form of variation of a regulated mortgage contract.
MCOB 4.1.5 R means that this chapter, MCOB 4, deals with standard regulated mortgage contracts,5 home purchase plans and regulated sale and rent back agreements54 only and therefore firms should note that the scope of service rules in 4 this chapter do not4 apply in respect of equity release transactions4.
4If a firm is an authorised professional firm, when the firm conducts non-mainstream regulated activities with a customer, the only initial disclosure requirements that apply are those relating to the Financial Ombudsman Service and the FSCS (see MCOB 1.2.10 R (3))4.
441The FCA would not view the removal of a party to the regulated mortgage contract following the death of that party (and where no other variation is proposed) as a variation for the purposes of MCOB 4.1.4 R(1).