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  1. Point in time
    2012-07-27

MCOB 6.7 Business loans

MCOB 6.7.1RRP
  1. (1)

    Where the regulated mortgage contract is for a business purpose, a firm may choose to provide a customer with a business offer document instead of the offer document referred to in MCOB 6.4.1 R.

  2. (2)

    If a firm provides a customer with a business offer document in accordance with (1), it must ensure that:

    1. (a)

      an updated business illustration, as required by MCOB 5.7 (Pre-application disclosure for business loans), forms part of the business offer document; and

    2. (b)

      subject to the tailoring required by MCOB 5.7 (Pre-application disclosure for business loans), the business offer document complies with MCOB 6.4 (Content of the offer document).

MCOB 6.7.1AGRP

1 Firms are reminded that in accordance with MCOB 1.2.3 R, they should either comply in full with MCOB or comply with all tailored provisions in MCOB that relate to business loans. Therefore, a firm may only follow the tailored provisions in MCOB 6.7 if it also follows all other tailored provisions in MCOB.

MCOB 6.7.2GRP

MCOB 6.7.1 R (2) means, for example, that the required text in MCOB 6.4.4 R (7) should be replaced by text that satisfies the requirements for business illustrations in MCOB 5.7.5 R

MCOB 6.7.3GRP

A firm may supplement the first paragraph of text prescribed in MCOB 6.4.4 R (5)(a) to clarify that, while the regulated mortgage contract is not binding until the relevant mortgage document has been signed and funds have been released, the business offer document may form part of a wider set of negotiated facilities and that the customer is separately bound by these.