Related provisions for MCOB 1.2.9A

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MCOB 4.10.4GRP
1The guidance on initial disclosure requirements at MCOB 4.4.2 G to MCOB 4.4.4 G may be relevant.Additional requirements for distance home purchase mediation contracts with retail customersNote: The rules regarding additional disclosure requirements for, and cancellation of, distance home purchase mediation contracts are set out in MCOB 4.5 and MCOB 4.6 respectively.
MCOB 4.10.7GRP
The guidance on suitability at MCOB 4.7.8 G to MCOB 4.7.10 G and MCOB 4.7.16 G may be relevant.
MCOB 4.10.11RRP
1A risks and features statement need not be personalised to the customer's circumstances but must:(1) include the Key facts logo in a prominent position at the top of the statement;(2) state that the FSA requires a firm to provide the statement;(3) state that mortgages are available and that the customer should think carefully about the product appropriate to his needs;(4) describe the significant features of the plan, including:(a) how the home purchase plan works;(b) the nature
MCOB 4.10.12RRP
1A firm may omit details of the charges that a customer may incur under a home purchase plan from the risks and features statement if they are included in a separate tariff of charges provided to the customer at the same time.
MCOB 6.8.1RRP
(1) 1If a firm offers to enter into a home purchase plan with a customer, it must ensure that the customer is, or has been provided with an appropriate offer document in a durable medium which includes:(a) the period for which the offer is valid;(b) an explanation of the consequences that might arise from the customer not entering into the home purchase plan including details of any fees that the customer has paid which will not be refunded;(c) an explanation of when the customer
MCOB 6.8.2RP
Although an offer document may not match information given in a financial information statement before an offer is made, an offer document should be an accurate reflection of the actual costs of the home purchase plan.
MCOB 6.8.3GRP
A firm should bear in mind its obligations under Principle 6. For example, if a firm knows that its interest in a home purchase plan will be assigned and the firm will no longer be responsible for setting rental payments and charges, the offer document should state this fact and who will become responsible after the assignment (if this is not known at the offer stage the customer should be notified as soon as it becomes known).
MCOB 6.8.5RRP
(1) A firm must communicate to a consumer2 the distance marketing information in a durable medium available and accessible to the consumer2 in good time before the consumer2 is bound by any distance contract or offer to enter into a home purchase plan.222(2) If the distance contract or offer has been concluded at the consumer's2 request using a means of distance communication2 which does not enable providing the information in accordance with (1) then it must be communicated no
MCOB 2.6A.1RRP
A firm must ensure that the interests of its customer under a home purchase plan, home reversion plan or regulated sale and rent back agreement2 are protected to a reasonable standard.
MCOB 2.6A.3GRP
The steps that a firm might take in order to protect its customer's interests will depend on a number of factors, including the nature and structure of the home purchase plan, home reversion plan or regulated sale and rent back agreement2 and the jurisdiction in which the property is situated. If it is not possible to achieve reasonable protection (for example, due to impediments under a particular legal system) then a firm should not enter into, arrange or administer the pla
MCOB 2.6A.4GRP
(1) In the FSA's view, a customer's interests will include:(a) protection of the customer's rights under the plan, in particular the right to occupy the property throughout its term;(b) protection of any interest (legal or beneficial) that the customer retains, acquires or is intended to acquire in the property, including the expectation that such interests will be unencumbered by third party interests; and(c) that, where a customer pays sums under a home purchase plan towards
MCOB 2.6A.8RRP
A firm must pay due regard to the interests of its customer and treat him fairly when drafting, amending the terms of, or imposing obligations or exercising rights or discretions under, a home purchase plan, home reversion plan or regulated sale and rent back agreement.2
MCOB 2.6A.9GRP
A firm is unlikely, for example, to be treating its customer fairly in relation to termination of a home purchase plan, home reversion plan or regulated sale and rent back agreement2if:(1) the grounds on which it may terminate all or part of a plan or agreement2 are unduly wide, or on which a customer may terminate are unduly narrow; or(2) the customer is not given appropriate notice of termination.
MCOB 2.6A.10GRP
A firm is also unlikely to be treating its customer fairly if, upon termination of an agreement under a home purchase plan, home reversion plan or regulated sale and rent back agreement,2 the customer does not receive (net of any reasonable sums payable by the customer):(1) in the case of a home reversion plan or regulated sale and rent back agreement2 where the customer retains a beneficial interest in the property, the value of that beneficial interest; or(2) in the case of
MCOB 1.2.1RRP
1(1) This sourcebook3 applies to every firm that:113(a) carries on a home finance activity3 (subject to 31the business loan application provisions3); or3(b) communicates or approves a financial promotion of qualifying credit, of a home purchase planorof a home reversion plan.33(2) Where a firm has outsourced activities to a third party processor, any rule in MCOB which requires the third party processor, when acting as such, to disclose its identity to a customer must be read
MCOB 1.2.2GRP
3(1) This sourcebook applies to activities carried out in respect of four5 types of product: regulated mortgage contracts (which includes lifetime mortgages), home purchase plans, home reversion plans and regulated sale and rent back agreements.5 Together, these products are referred to as home finance transactions.355(2) Lifetime mortgages and home reversion plans are together referred to as equity release transactions.3(3) The application of most of this sourcebook is expressed
MCOB 13.6.3RRP
A firm must ensure that, as soon as possible after the sale of a repossessed property, if the proceeds of sale are less than the amount due under the regulated mortgage contract or home purchase plan1, the customer is informed in a durable medium of:1(1) the sale shortfall; and(2) where relevant, the fact that the sale shortfall1may be pursued by another company (for example, a mortgage indemnity insurer).1
MCOB 13.6.4RRP
(1) If the decision is made to recover the sale shortfall,1 the firm must ensure that the customer is notified of this intention.1(2) The notification referred to in (1) must take place within five years of the date of the sale (if the regulated mortgage contract or home purchase plan1is subject to Scottish law) or within six years (in all other cases).
MCOB 13.6.6RRP
A firm must ensure that, on the sale of a repossessed property, if the proceeds of sale are more than the amount due under the regulated mortgage contract or home purchase plan1, reasonable steps are taken, as soon as possible after the sale, to inform the customer in a durable medium of the surplus and, subject to the rights of any subsequent mortgage or charge holders, to pay it to him.1
MCOB 13.3.1RRP
(1) A firm must deal fairly with any customer who:(a) is in arrears on a regulated mortgage contract or home purchase plan;11(b) has a sale shortfall; or11(c) is otherwise in breach of a home purchase plan.(2) A firm must put in place, and operate in accordance with, a written policy (agreed by its respective governing body) and procedures for complying with (1).
MCOB 4.5.1GRP
(1) There are certain additional disclosure requirements laid down by the Distance Marketing Directive that will have to be provided by a mortgage intermediary and a home purchase intermediary4 to a consumer5 prior to the conclusion of a distance mortgage mediation contract or a distance home purchase mediation contract4. The purpose of this section, MCOB 4.5, is to set out those additional requirements. MCOB 4.6 sets out the cancellation rights that apply in relation to such
MCOB 4.5.2RRP
If the initial contact of a kind in MCOB 4.4.1 R (1) is with a consumer5 with a view to concluding a distance mortgage mediation contract or a distance home purchase mediation contract,4 a firm must:54(1) in addition to initial disclosure information and any other required information, provide the consumer5 with the information in MCOB 4 Annex 3 in a durable medium in good time before the conclusion of the distance mortgage mediation contractor distance home purchase mediation
MCOB 4.5.3GRP
(1) The information in MCOB 4 Annex 3 will be provided in 'good time' for the purposes of MCOB 4.5.2 R (1), if provided in sufficient time to enable the customer to consider properly the services on offer.(2) An example of the circumstances in which MCOB 4.5.2 R (4) or (5) may apply is given in MCOB 4.4.4 G. If the initial disclosure document and accompanying information (including that in MCOB 4 Annex 3) was previously provided to a customer and continues to be appropriate, there
MCOB 4.6.1GRP
A consumer2 has no right to cancel a home finance transaction1 concluded with a firm but may have a right to cancel a distance contract concluded with a mortgage intermediaryor a home purchase intermediary1for the provision of his services. Whether a mortgage intermediary or a home purchase intermediary1 concludes a distance mortgage mediation contract or a distance home purchase mediation contract1 with a consumer2 will depend on the circumstances. For example, an intermediary
MCOB 4.6.4RRP
(1) A consumer2 has a right to cancel a distance mortgage mediation contractor a distance home purchase mediation contract1 in accordance with this section.2(2) The right to cancel must be exercised within 14 days beginning on the later of:(a) the day of the conclusion of the contract; or(b) the day on which the consumer2 receives the contractual terms and conditions and other information required by MCOB 4.4 and MCOB 4.5.2
MCOB 4.6.5RRP
A consumer2 who has a right to cancel a distance mortgage mediation contract or a distance home purchase mediation contract1 may, without giving any reason, cancel the contract by serving notice on the firm, before the expiry of the cancellation period in MCOB 4.6.4 R either:2(1) by serving on, or otherwise sending by post, notice to the firm's last known address, addressed to the firm, its appointed representative or on any agent of the firm with authority to accept notice on
MCOB 13.1.4RRP
The requirements in this chapter1will continue to apply to a firm after a regulated mortgage contract or home purchase plan1has come to an end following the sale of a repossessed property. References in this chapter to "customer" will include references to a former customer as appropriate.1
MCOB 13.1.7GRP
If a firm has entered into more than one regulated mortgage contract or home purchase plan1with the same customer relating to1the same property, the firm may treat them1 all as one for the purposes of this chapter1.111
MCOB 2.1.2RRP

This table belongs to MCOB 2.1.1 R

(1) Category of firm

(2) Applicable section

mortgage lender

mortgage administrator

mortgage adviser

mortgage arranger

whole chapter except MCOB 2.2.6A R, MCOB 2.2.8A R, MCOB 2.2.8B G. MCOB 2.6A and MCOB 2.8.6 G1

1home purchase provider

MCOB 2.1, MCOB 2.2.1 G, MCOB 2.2.6 R to MCOB 2.2.9 G, MCOB 2.5, MCOB 2.6, MCOB 2.6A.1 R to MCOB 2.6A.4 G, MCOB 2.6A.7 G to MCOB 2.6A.10 G, MCOB 2.7.4 R to MCOB 2.7.6 R, MCOB 2.7A2 and MCOB 2.8.6 G

1home purchase administrator

As for a home purchase provider but MCOB 2.6A.1 R to MCOB 2.6A.4 G and MCOB 2.6A.7 G do not apply

1home purchase adviser

home purchase arranger

As for a home purchase provider but MCOB 2.6A does not apply

1reversion provider

whole chapter except MCOB 2.2.6A R, MCOB 2.2.8A R and MCOB 2.2.8B G, MCOB 2.6A.7 G, MCOB 2.7.4 R to MCOB 2.7.6 R and MCOB 2.8.6 G

1reversion administrator

reversion arranger

As for a reversion provider but the relevant provisions of MCOB 2.6A apply only when arranging for a home reversion plan to be entered into by a reversion occupier with, or administering a home reversion plan provided by, an unauthorised reversion provider.

1reversion adviser

As for a reversion provider but MCOB 2.6A does not apply

3SRB administrator

SRB arranger

As for a SRB agreement provider together with MCOB 2.6A.17A R and MCOB 2.6A.18 G(which do apply) but the relevant provisions of MCOB 2.6A only apply when making arrangements for a regulated sale and rent back agreement to be entered into by a SRB agreement seller with, or administering a regulated sale and rent back agreement provided by, an unauthorised SRB agreement provider.

3SRB adviser

As for a SRB agreement provider but MCOB 2.6A does not apply

3SRB agreement provider

MCOB 2.1, MCOB 2.2.6 R to MCOB 2.2.7 G, MCOB 2.4.1 G to MCOB 2.4.3 G, MCOB 2.6A.1 R to MCOB 2.6A.4 G, MCOB 2.6A.5A R, MCOB 2.6A.8 R to MCOB 2.6A.12 R, MCOB 2.6A.13E (1) and (4) and MCOB 2.6A.15 R to MCOB 2.6A.16 G.

a firm that communicates or approves a financial promotion of qualifying credit or of a home reversion plan1

1

MCOB 2.5, MCOB 2.6, MCOB 2.7 (except, when the financial promotion relates to a home reversion plan, MCOB 2.7.4 R to MCOB 2.7.6 R), MCOB 2.7A2 and MCOB 2.8 (except MCOB 2.8.6 G)1

1a firm that communicates or approves a financial promotion of a home purchase plan

MCOB 2.2.6 R to MCOB 2.2.9 G, MCOB 2.5, MCOB 2.6, MCOB 2.7, MCOB 2.7A2 and MCOB 2.8.6 G

MCOB 2.1.3RRP
This chapter applies in relation to:(1) home finance activities;11(1A) the extent specified in MCOB 2.1.2 R Table, regulated sale and rent back activity;3(2) those activities in MCOB 12 and MCOB 13 that are carried on after a regulated mortgage contract or home purchase plan1 has come to an end following the sale of a repossessed property, and those activities in MCOB 12 that are carried on after a home reversion plan has ended for any reason1; and(3) the communication or approval
MCOB 1.3.4RRP
(1) The rules in (2) do not apply to a firm with respect to a regulated mortgage activity or a home purchase activity2 exclusively concerning a distance contract if the following conditions are satisfied:2(a) the firm carries on the activity from an establishment maintained by the firm in an EEA State other than the United Kingdom; and(b) either the EEA State:(i) has implemented the Distance Marketing Directive3; or3(ii) has obligations in its domestic law corresponding to those
MCOB 1.3.5GRP
Parts of MCOB relate to distance contracts (or distance mortgage mediation contracts and distance home purchase mediation contracts2) with consumers3. These expressions are derived from the Distance Marketing Directive, and the following paragraphs provide some guidance to firms on their meaning:3(1) consumer3The Distance Marketing Directive applies for distance contracts with 'any natural person who is acting for purposes which are outside his trade, business or profession',
MCOB 6.2.1GRP
(1) MCOB 6 amplifies Principle 6 and Principle 7. The purpose of MCOB 6 is to ensure that a customer receives a clear offer document to enable him to check the features and price of thehome finance transaction1 before he enters into it. The offer document should include an updated and suitably adapted illustration (for a regulated mortgage contract) or financial information statement (for a home purchase plan)1 so that the customer can compare it with the one1 he received before
MCOB 4.2.1GRP
(1) This chapter amplifies Principle 6 (Customers' interests), Principle 7 (Communications with clients) and Principle 9 (Customers: relationships of trust). 1(2) The purpose of this chapter is to ensure that:(a) customers are adequately informed about the nature of the service which they may receive from a firm in relation to home finance transactions1. In particular firms need to make clear to customers the scope of home finance transactions available from them; and11(b) where
MCOB 2.8.6GRP
1This sourcebook does not specify detailed record keeping requirements for a firm that carries on a home purchase activity or that communicates or approves a financial promotion of a home purchase plan (but note the high-level record-keeping provisions in the Senior Management Arrangements, Systems and Controls sourcebook).
PERG 7.3.1CGRP
1Under article 53C of the Regulated Activities Order (Advising on regulated home purchase plans), advising a person is a specified kind of activity if:(1) the advice is given to the person in his capacity as a home purchaser or potential home purchaser; and(2) it is advice on the merits of his doing any of the following:(a) entering into a particular home purchase plan; or(b) varying the terms of a home purchase plan entered into by him on or after 6 April 2007 in such a way as
PERG 7.3.2GRP
Articles 53,1 53A, 53B and 53C1of the Regulated Activities Order contain a number of elements, all of which must be present before a person will require authorisation. For guidance on whether a person is carrying on these regulated activities, see PERG 8 (Financial promotion and related activities),1PERG 4 (Guidance on regulated activities connected with mortgages), and PERG 14.3 and PERG 14.4 (Guidance on home reversion and home purchase activities)1.11
MCOB 2.7.4RRP
During the course of a distance contract with a consumer4, the making or performance of which constitutes or is part of a regulated mortgage contract or home purchase plan:343(1) the firm must, at the consumer's4 request, provide a paper copy of the contractual terms and conditions of the regulated mortgage contract, home purchase plan or services being provided by the firm; and 433(2) the firm must comply with the customer's request to change the means of distance communication4