MCOB TP 1 Transitional Provisions

1

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2

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3

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5

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7

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82

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59

[FCA]

MCOB 5.6.9 R and MCOB 9.4.13 R

R

Expired11

410

[FCA]

MCOB 4 Annex 1, MCOB 4 Annex 2, MCOB 5 Annex 1, MCOB 8 Annex 1 and MCOB 9 Annex 1

R

Expired11

711

[FCA]

MCOB 4.4.1 R, MCOB 4.4.7 R and MCOB 4.10.2 R

R

Expired11

812

[FCA]

MCOB 5.6.2 R, MCOB 5.6.5 R, MCOB 5.6.65 R, MCOB 5.6.121 R, MCOB 5.6.145 R and MCOB 5 Annex 1

R

Expired11

913

[FCA]

MCOB 13.3.9 R

R

Expired11

1014

[FCA]

MCOB 5.6.2 R, MCOB 5.6.65 R, MCOB 5.6.145 R and MCOB 5 Annex 1

R

Expired11

1015

[FCA]

MCOB 9.4.2 R, MCOB 9 Annex 1 and MCOB 9 Annex 2

R

Expired11

1016

[FCA]

MCOB 13.4.1 R (1)

R

Expired11

2317

MCOB 4.4.1 R, MCOB 4.10.2 R

R

Expired13

2318

MCOB 4.4.1 R, MCOB 4.10.2 R

R

Expired13

1219

MCOB 4.8A

R

Expired13

1420

MCOB TPs 22, 24, 26, 28, 30, 32, 34, 36, 38, 40, 53 and 5516

G

The purpose of TPs 22, 24, 26, 28, 30, 32, 34, 36, 38, 40, 53 and 55 16is to allow firms to apply certain sets of provisions that implement MCD requirements early. A firm may adopt any set of provisions, it need not adopt all of the sets at the same time.

21 September 2015 to 20 March 2016

21 March 2016

1421

MCOB TPs 22, 24, 26, 28, 30, 32, 34, 36, 38, 40, 53 and 5516

R

An election to apply any of TP 22, 24, 26, 28, 30, 32, 34, 36, 38, 40, 53 and 55 16does not imply an election to apply any other of TP 22, 24, 26, 28, 30, 32, 34, 36, 38, 40, 53 and 55.16

21 September 2015 to 20 March 2016

21 March 2016

1422

MCOB 2A.1

R

A firm to which MCOB 2A.1 will apply from 21 March 2016 may elect to comply with MCOB 2A.1 from 21 September 2015. If the firm elects to comply with MCOB 2A.1, it must comply with MCOB 2A.1 and any related provisions in full.

21 September 2015 to 20 March 2016

21 March 2016

1423

MCOB TP 22

G

TP 22 allows a firm to apply the MCD requirements relating to remuneration early.

1424

MCOB 2A.3, MCOB 7A.4 MCOB 5A, MCOB 6A, MCOB 7B and MCOB 10A

R

A firm to which these provisions will apply from 21 March 2016 may elect to comply with them all, in full, and any related provisions, from 21 September 2015. As such, the rules and other provisions in MCOB 5, MCOB 6, MCOB 7.6.7R to MCOB 7.6.17R and MCOB 10, as in force prior to 21 March 2016, will cease to apply from the date of the election.

21 September 2015 to 20 March 2016

21 March 2016

1425

MCOB TP 24

G

TP 24 allows a firm to apply the MCD requirements relating foreign currency early.

1426

MCOB 3A and MCOB 10A

A firm to which these provisions will apply from 21 March 2016 may elect to comply with them all, in full, and any related provisions, from 21 September 2015. As such, the rules and other provisions in MCOB 3 and MCOB 10, as in force prior to 21 March 2016, will cease to apply from the date of the election.

21 September 2015 to 20 March 2016

21 March 2016

1427

MCOB TP 26

G

TP 26 allows a firm to apply the MCD requirements relating to advertising early.

1428

MCOB 3B

R

A firm to which MCOB 3B will apply from 21 March 2016 may elect to comply with MCOB 3B from 21 September 2015. If the firm elects to comply with MCOB 3B, it must comply with MCOB 3B and any related provisions in full.

21 September 2015 to 20 March 2016

21 March 2016

1429

MCOB TP 28

G

MCOB TP 28 allows a firm to apply the MCD requirements relating to general information early.

1430

MCOB 4.4A.4R (1)(a) and (3), MCOB 4.4A.8R (1)(c) and (d), MCOB 4.4A.8R (2)(e) and MCOB 4A.1

R

A firm to which these provisions will apply from 21 March 2016 may elect to comply with them all, in full, and any related provisions, from 21 September 2015. As such, the rules and other provisions in MCOB 4.4A.8 R, MCOB 4.4A.9 R, MCOB 4.4A.12 R, MCOB 4.4A.18 R and MCOB 4.4A.21 R, as in force prior to 21 March 2016, will cease to apply from the date of the election.

21 September 2015 to 20 March 2016

21 March 2016

1431

MCOB TP 30

G

MCOB TP 30 allows a firm to apply the MCD requirements relating to intermediary disclosure early.

1432

MCOB 4.7A.15 R, MCOB 4.7A.21 G, MCOB 4.8A.7 R and MCOB 11A

R

A firm to which these provisions will apply from 21 March 2016 may elect to comply with them all, in full, and any related provisions, from 21 September 2015. As such, the rules and other provisions in MCOB 4.7A.21 G, and MCOB 4.8A.7 R, as in force prior to 21 March 2016, will cease to apply from the date of the election.

21 September 2015 to 20 March 2016

21 March 2016

1433

MCOB TP 32

G

MCOB TP 32 allows a firm to apply the MCD requirements relating to creditworthiness early.

1434

MCOB 4A.2

R

A firm to which MCOB 4A.2 will apply from 21 March 2016 may elect to comply with MCOB 4A.2 from 21 September 2015. If the firm elects to comply with MCOB 4A.2 early, it must comply with MCOB 4A.2 and any related provisions in full from the date of election.

21 September 2015 to 20 March 2016

21 March 2016

1435

MCOB TP 34

G

MCOB TP 34 allows a firm to apply the MCD requirements relating to adequate explanations early.

1436

MCOB 4.4A.4R (3) and MCOB 4A.2

R

A firm to which these provisions will apply from 21 March 2016 may elect to comply with them all, in full, and any related provisions, from 21 September 2015. As such, the rules and other provisions in MCOB 4.4A.4R (3), as in force prior to 21 March 2016, will cease to apply from the date of the election.

21 September 2015 to 20 March 2016

21 March 2016

1437

MCOB TP 36

G

MCOB TP 36 allows a firm to apply the MCD requirements relating to advice early.

1438

MCOB 5A, MCOB 6A and MCOB 10A

R

A firm to which these provisions will apply from 21 March 2016 may elect to comply with them all, in full, and any related provisions, from 21 September 2015. As such, the rules and other provisions in MCOB 5, MCOB 6 and MCOB 10, as in force prior to 21 March 2016, will cease to apply from the date of the election.

21 September 2015 to 20 March 2016

21 March 2016

1439

MCOB TP 39

G

MCOB TP 38 allows a firm to apply the MCD requirements relating to pre-contractual information early.

1440

MCOB 5A, MCOB 6A, MCOB 7B, MCOB 7.6.18R to MCOB 7.6.26G, MCOB 7.6.31R to MCOB 7.6.36G and MCOB 10A

R

(1) A firm to which these new or amended provisions will apply from 21 March 2016 may elect to comply with them all, in full, and any related provisions, from 21 September 2015. As such, the rules and other provisions listed in paragraph (2) below, as in force prior to 21 March 2016, will cease to apply from the date of the election. However, MCOB 7.6.7R to MCOB 7.6.17R will continue to apply, after such an election, to regulated mortgage contracts other than MCD regulated mortgage contracts.

(2) The rules and provisions referred to in paragraph (1) above are those in MCOB 5, MCOB 6, MCOB 7.6.7R to MCOB 7.6.17R (in relation to MCD regulated mortgage contracts), MCOB 7.6.18R to MCOB 7.6.26G, MCOB 7.6.31R to MCOB 7.6.36G and MCOB 10.

21 September 2015 to 20 March 2016

21 September 2015 to 20 March 2016

1441

MCOB TP 40

G

MCOB TP 40 allows a firm to apply the new and amended requirements relating to further advances, rate switches and the addition and removal of parties early.

1442

MCOB (all)

R

Where article 31(2) of the Mortgage Credit Directive Order 2015 applies, a relevant firm:18

(1) must comply with all the provisions of MCOB that will apply to that firm in respect of the agreement from 21 March 2016;

(2) except as provided in (3), need not comply with the provisions of CONC or MCOB18 that would otherwise apply in respect of the agreement.

(3) must, if the firm has interim permission, continue to comply with the other provisions of the FCA Handbook as modified by CONC 12.18

In this rule, a “relevant firm” means a second charge lender and a firm carrying on a regulated activity of a kind specified in article 36A(1)(a) to (c) of the Regulated Activities Order (disregarding the effect of paragraph (2) of that article).18

21 September 2015 to 20 March 2016

21 September 2015 to 20 March 2016

1443

MCOB TP 42

G

The restrictions on firms with interim permission in article 59 of SI 2013/1881 continue to apply to a firm using MCOB TP 42.

1444

MCOB TP 42

G

Article 31 of the Mortgage Credit Directive Order 2015 applies to agreements which, if entered into before 21 March 2016, would be a regulated credit agreement but which, if entered after 20 March 2016, would be a regulated mortgage contract, where neither the lender nor any credit broker has complied with CCA requirements in respect of the agreement and both the lender and any credit broker comply with MCOB (as it will apply from 21 March 2016). The effect of article 31(2) is that the agreement is treated as a regulated mortgage contract rather than as a regulated credit agreement. MCOB TP 42 allows a second charge lender and a credit broker to comply, before 21 March 2016, with MCOB as it will apply from that date without at the same time needing to comply with CONC or with pre-21 March 2016 provisions of MCOB.18

1445

MCOB 5A, MCOB 6A and MCOB 7B

R

A firm that is an MCD mortgage lender or MCD mortgage credit intermediary may provide an illustration instead of an ESIS for an MCD regulated mortgage contract that is not a second charge regulated mortgage contract.

[Note: article 14(5) of the MCD]

From 21 March 2016 until 21 March 2019

21 March 2016

1446

MCOB 5A, MCOB 6A and MCOB 7B

R

A firm that applies TP 45 must also provide the information in (1), (2) and either (3)(a) or (3)(b) 15below:

(1) 15for a foreign currency loan, the warning and illustrative example required by section 6 of MCOB 5A Annex 1 and MCOB 5A Annex 2, 8.6R;

(2) 15the reflection period required by MCOB 6A.3.4R(1) and (2), section 11 of MCOB 5A Annex 1 and MCOB 5A Annex 2, 13.1R; and15

(3) where the borrowing rate is variable: 15

(a) the warning and the additional APRC required by section 4 of MCOB 5A Annex 1R24 and MCOB 5A Annex 2, 6.2R to 6.8R, and the maximum instalment illustration required by section 6 of MCOB 5A Annex 1R and MCOB 5A Annex 2, 8.5R24; or15

(b) the information set out in (a), but reading references to “APRC” as references to “APR”15

From 21 March 2016 until 21 March 2019

21 March 2016

1447

MCOB 5A, MCOB 6A and MCOB 7B

R

A firm must provide the information required by TP 46 no later than when it provides the illustration.

From 21 March 2016 until 21 March 2019

21 March 2016

1448

MCOB 5A, MCOB 6A and MCOB 7B

R

A firm may provide the information required by MCOB TP 46 either within the illustration or separately in a durable medium. Where a firm provides that information within the illustration, it should either add the information within the most relevant section of the illustration or it should add a new section which should be marked "[number of the preceding section]A" to identify the additional information.

From 21 March 2016 until 21 March 2019

21 March 2016

1449

MCOB 5A, MCOB 6A and MCOB 7B

R

Where a firm provides an additional APRC in accordance with TP 46R(3)21 above, the firm is not required to comply with MCOB 5.6.59 R (1)(g) and MCOB 5.6.59 R (1)(h).

From 21 March 2016 until 21 March 2019

21 March 2016

1450

MCOB 5A, MCOB 6A and MCOB 7B

R

Where a firm applies MCOB TP 45, MCOB 5.6.34 R (3) has effect with the following amendment: “ ‘The overall cost for comparison is [insert the APR]% APR]’ or ‘The APRC applicable to your loan is [APRC]’.“

From 21 March 2016 until 21 March 2019

21 March 2016

1451

MCOB 5A, MCOB 6A and MCOB 7B

R

A firm may cease to apply MCOB TP 45 at any time,

From 21 March 2016 until 21 March 2019

21 March 2016

1452

R

MCOB 2A.6.1 R does not apply to information provided for a contract entered into before 21 March 2016 that would be an MCD regulated mortgage contract if it were entered into on, or after, 21 March 2016

From 21 March 2016 indefinitely

21 March 2016

1653

MCOB 14

R

A firm to which MCOB 14 will apply from 21 March 2016 may elect to comply with MCOB 14 from 21 September 2015. If so, from the date of that election:

(i) the rules and other provisions in CONC will cease to apply to the firm with respect to the conduct governed by MCOB 14, except for CONC 1.2.8R, the rules applied by CONC 1.2.8R, and any related provisions (for example, CONC 1.2.10R); and

(ii) the firm must comply with MCOB 14 with respect to its lending under MCD article 3(1)(b) credit agreements or, as the case may be, its MCD article (3)(1)(b) credit intermediation activity.

21 September 2015 to 20 March 2016

21 March 2016

1654

MCOB TP 1.53

G

(1)

MCOB TP 1.53 allows a firm to apply the MCD requirements relating to lending under MCD article 3(1)(b) credit agreements and MCD article (3)(1)(b) credit intermediation activity early.

21 September 2015 to 20 March 2016

21 March 2016

(2)

A firm should generally make one election under MCOB TP 1.53 for all of its MCD article (3)(1)(b) credit intermediation activity, or all of its lending under MCD article 3(1)(b) credit agreements, at any given time.

(3)

Where a firm wishes to make different elections for different types of MCD article (3)(1)(b) credit intermediation activity or lending under MCD article 3(1)(b) credit agreements, it should maintain processes to ensure that the rules applicable to each type of activity and each agreement or customer are clearly identifiable to its staff and, on request, to customers and the FCA. Its processes should also ensure that each agreement or customer is dealt with in compliance with the rules applicable to it or them.

1655

MCOB TP 1.20 to TP 1.53

R

If a firm elects under MCOB TP 1.20 to TP 1.53 to comply with provisions of the FCA Handbook which, but for this section, would not be in force before 21 March 2016, those provisions, and any other provisions in the Handbook which they apply or on which they depend, are to apply in respect of the firm from the date of the election but in the form in which they will appear in the Handbook on 21 March 2016.

21 September 2015 to 20 March 2016

21 March 2016

1956

MCOB 5 Annex 1R

R

A firm to which MCOB 5.6 applies (pursuant to MCOB 5.1) may elect from 4 December 2015 to use the text in the section of MCOB 5 Annex 1R headed “Where can you get more information about mortgages?” as it will be in force from 21 March 2016.

4 December 2015 to 20 March 2016

21 March 2016

1957

MCOB 5 Annex 1R

R

A firm to which MCOB 5.6 applies (pursuant to MCOB 5.1) may elect to use the text in the section of MCOB 5 Annex 1R headed “Where can you get more information about mortgages?” as in force immediately prior to 21 March 2016.

21 March 2016 to 3 December 2016

21 March 2016

1958

MCOB 5 Annex 1R

G

MCOB 5.6 sets out the required content of an illustration to be provided to a customer by a firm, where required by MCOB 5.5. MCOB 5 Annex 1R, which sets out the format for that illustration, is amended on 21 March 2016. TP 56 and TP 57 allow a firm to elect the time at which to begin using the wording in the section of the illustration headed “Where can you get more information about mortgages?”, as amended from 21 March 2016, as long as the firm begins to use the new wording within the period 4 December 2015 to 3 December 2016.