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  1. Point in time
    2008-10-01

MCOB 8.6 Non-advised sales

MCOB 8.6.1R

The1 questions used to help a customer select an equity release transaction1 must cover the following:

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  1. (1)

    the matters regarding eligibility criteria, customer's preferences for his estate, customer's health and life expectancy, customer's future plans and needs, customer's preference or need for stability in the amount of payments, and whether the customer has a preference or need for any other features, 1set 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)

      an equity release transaction from the other market sector1; and

      1
    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

A1 firm should encourage a customer to seek advice on an equity release transaction1 if the customer is unsure about making their own choice.In relation to grant assistance, means-tested benefits and the customer's tax position,1 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).

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MCOB 8.6.3G

Firms are reminded that 1the Training and Competence sourcebook1 sets out requirements for:

  1. (1)

    employees designing scripted questions for use with customers in non-advised sales2 of equity release transactions 1; and

    212
  2. (2)

    employees overseeing on a day-to-day basis the non-advised 2sales to customers of equity release transactions 1.

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