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MCOB 8.6 Non-advised sales

MCOB 8.6.1R

In relation to MCOB 4.8.1 R the questions used to help a customer select a regulated lifetime mortgage contract must cover the following:

  1. (1)

    the matters set out in MCOB 8.5.8 R;

  2. (2)

    whether the customer has considered alternative methods of raising the required funds, and in particular;

    1. (a)

      a home reversion scheme; and

    2. (b)

      where relevant, grant assistance from his local authority (or other provider); and

  3. (3)

    whether the customer has established whether either his entitlement to means-tested benefits or his tax position or both will be adversely affected.

MCOB 8.6.2G

In complying with MCOB 8.6.1 R(2) and (3) a firm should encourage a customer to seek advice on a regulated lifetime mortgage contract if the customer is unsure about making their own choice.In the case of MCOB 8.6.1 R(2)(b) and (3) a firm should, where relevant, encourage the customer to seek further information from an appropriate source such as their local authority or Citizens Advice Bureau (or other similar agency).

MCOB 8.6.3G

Firms are reminded that TC 2 sets out requirements for:

  1. (1)

    employees designing scripted questions for use in sales to customers of regulated lifetime mortgage contracts which do not involve personal recommendations; and

  2. (2)

    employees overseeing on a day-to-day basis the sales to customers of regulated lifetime mortgage contracts which do not involve personal recommendations.