MCOB 4.5 Additional disclosure for distance mortgage mediation contracts with retail customers

If the initial contact of a kind in MCOB 4.4.1 R (1) is with a retail customer with a view to concluding a distance mortgage mediation contract.2, a firm must:

1. (1)

   in addition to the initial disclosure informationrequired by MCOB 4.4.1 R (1)(c) and any other required information, provide the retail customer with the information in MCOB 4 Annex 3 in a durable medium in good time before the conclusion of the distance mortgage mediation contract

   with that customer unless an exemption in (2), (3), (4) or (5) applies.

2. (2)

   Exemption: telephone sales

   1. (a)

      This exemption applies if the service is being provided on the telephone and the customer wishes to enter into a contract with the firm. Provided the customer gives his explicit consent to receiving only limited information, the firm may proceed on the basis of at least the following information:2

      1. (i)

         the name of the person in contact with the customer and his link with the firm;

      2. (ii)

         the total price to be paid by the customer to the firm for the services, including all related fees, charges and expenses, and all taxes paid through the firm or, where an exact price cannot be indicated, the basis for the calculation of the price, enabling the customer to verify it;

      3. (iii)

         notice of the possibility that other taxes or costs may exist that are not paid through the firm or imposed by it;

      4. (iv)

         the information about cancellation rights set out in MCOB 4 Annex 3(5); and

      5. (v)

         that other information is available on request, and the nature of that information.

   2. (aa)

      If the customer does not give his explicit consent to receiving limited information, and the parties wish to proceed by telephone, the firm must, prior to the conclusion of the contract, provide orally to the customer all of the information required by (1).2

   3. (b)

      Where (a) or (aa) applies, the firm must send the retail customer without delay and, at the latest immediately after a contract is concluded, the information required by (1), in a durable medium.2

3. (3)

   Exemption: certain other means of distance communication. This exemption applies if the contract is concluded at the retail customer's request using a means of distance communication (other than telephone) which does not enable provision of the information referred to in MCOB 4 Annex 3 in a durable medium before the conclusion of the contract. In that case, the firm must provide the retail customer with the information in a durable medium immediately after conclusion of the distance mortgage mediation contract.

4. (4)

   Exemption: successive operations or separate operations under an initial service agreement. This exemption applies if the firm has an initial service agreement with the retail customer and the contract is in relation to a successive operation or a separate operation of the same nature under that agreement.

5. (5)

   Exemption: other successive or separate operations This exemption applies if:

   1. (a)

      the firm has no initial service agreement with the retail customer; and

   2. (b)

      the firm has performed an operation with the retail customer within the last year; and

   3. (c)

      the contract is in relation to a successive operation or separate operation of the same nature.