MCOB TP 2 Transitional Provisions

1(1)

(2) Material to which the transitional provision applies

(3)

(4) Transitional provision

(5) Transitional provision: dates in force

(6) Handbook provision: coming into force

1

Every rule in MCOB unless the context otherwise requires and subject to any more specific transitional provision relating to the matter.

R

(1) If, in relation to home purchase activities, home reversion activities, or the communication of a financial promotion of a home purchase plan or home reversion plan, the application of any provision in MCOB is dependent on the occurrence of a series of events, the provision applies with respect to the events that occur on or after 6 April 2007.

From 6 April 2007 for six months.

6 April 2007

2

G

(1) For example, if a customer submits an application for a home purchase plan or a home reversion plan before 6 April 2007, a firm responding to that application on or after 6 April 2007 will not be required to comply with the relevant disclosure requirements in MCOB 5. However, the firm will have to comply with the requirements in MCOB when taking any further action (such as issuing an offer) regarding the application on or after 6 April 2007.(2) In relation to a home reversion plan, an offer document may have to be issued under transitional provision 1R even though no illustration has been given out (because that part of the transaction occurred before 6 April 2007). In such cases, the suitably adapted illustration required as part of an offer document would need to omit:(a) the required text regarding comparing the offer document with the illustration previously given to the customer (see MCOB 6.4.4 R (4)(b)); and(b) Section 2 of the illustration entirely.

3

G

MCOB applies to home purchase plans and home reversion plans entered into on or after 6 April 2007. PERG 14 contains guidance on the variation of plans entered into before 6 April 2007.

4

MCOB 3.8A.3 R (1)

R

(1) A non-real time financial promotion of a home reversion plan communicated:(a) in a directory (or similar publication) that is updated annually;(b) otherwise than in (a); on or after 6 April 2007 where the deadline for submission for communication was before that date does not need to describe a home reversion plan as a 'home reversion plan'.

(1)(a) from the later of 6 April 2007 or the date of first communication, for one year; (1)(b) from 6 April 2007 for three months.

6 April 2007