Related provisions for MCOB 9.4.59
1 - 20 of 46 items.
An illustration provided to a customer must:(1) contain the material set out in the relevant annex to this chapter in the order and using the numbered section headings, sub-headings and text prescribed, except where this section provides otherwise;88(2) follow the format of the template in 8the relevant annex to this chapter8, with:(a) prominent use of the Key facts5 logo followed by the text 'about this lifetime mortgage' or 'about this home reversion plan'8;55(b) each section
(1) Further requirements regarding the use of the Key facts logo and the location of specimens are set out in GEN 5.1 and GEN 5 Annex 1 G.55(2) MCOB 9.4.2 R(3) does not prevent the use of different fonts and typefaces for headings and risk warnings. Its purpose is to prevent particular sections of the illustration from being made less prominent than other sections through the inconsistent use of font sizes and typefaces.(3) The illustration can contain the equity release provider's
A firm must include in the illustration all prescribed section headings, except that:8(1) in Section 8 of the lifetime mortgageillustration8 (What you owe and when):(a) Section 8 (A) (details of mortgage payments) is only required where the customer is required to make payments to the mortgage lender in respect of the capital or all or part of the interest charged on the lifetime mortgage;77(b) Section 8(B) (projection of roll-up of interest) is only required where all or part
As a minimum the illustration must be personalised to reflect the following:(1) the specific equity release transaction8 in which the customer is interested;8(2) the amount of the loan or equity8 required by the customer, or for drawdown mortgages and instalment reversion plans,8 the amount the customer wishes to draw down or to receive8 on a monthly (or such frequency that amounts are available) basis. Where the amount the customer can draw down is variable, the firm must agree
These are8 minimum requirements. The illustration may be personalised to a greater degree if the equity release provider or equity release intermediary8 wishes, subject to the restrictions on the information that can be obtained from the customer when he requests written information on a particular transaction (see MCOB 5.5.1 R (2)(c)).88
In relation to the price or value of the property8, in order for the firm to comply with the principle that an illustration should be clear, fair and not misleading8, an estimated valuation, where the estimated valuation is not that provided by the customer, must be a reasonable assessment based on all the facts available at the time. For example, an overstated valuation could enable a more attractive lifetime mortgage7 to be illustrated on the basis of a lower ratio of the loan
(1) In estimating the term of a lifetime mortgage or an open-ended instalment reversion plan,8 a firm must:8(a) use the following mortality table: PMA92(C=2010) and PFA92(C=2010) for males and females respectively, derivable from the Continuous Mortality Investigation Report 17, published by the Institute of Actuaries and the Faculty of Actuaries in 1999; and2(b) for the purposes of the illustration, where the table does not result in a life expectancy expressed in whole years,
If the customer requests an illustration showing a term of the customer's choice, that illustration must be issued in addition to the illustration showing the term calculated in accordance with these rules8. The term chosen should be stated in Section 4 of the illustration "What you have told us".88
The amount to be specified in the illustration and 8referred to in MCOB 9.4.6 R(2) is:(1) the amount that the customer has asked to borrow, release8 or draw down; or(2) where the lifetime mortgage7 is a revolving credit agreement such as a secured overdraft or mortgage credit card:67(a) 6(if it provides for an initial drawdown and linked borrowing facilities that would allow the customer to increase the amount of the loan without any further approval from the mortgage lender)
MCOB 9.4.13 R(3) does not require information to be obtained from the customer before providing an illustration in order to ascertain the amount the customer is eligible to borrow or to release from the property8. Instead, its purpose is to avoid a firm being in a position where it would otherwise have to provide a customer with an illustration for an amount it knew the customer would not be eligible for, based on whatever information it had obtained from the customer before providing
Where the illustration relates to a lifetime mortgage7 that is sub-divided into different parts with different types of interest rate or different rates of interest or different conditions, or a combination of these, the requirements in MCOB 9.4 may be adapted to accommodate this. The adaptations made must be limited to those that are necessary.7
The following information must be included at the head of the illustration: (1) the customer's name;(2) the date of issue of the illustration;(3) details of how long the illustration is valid for, and whether there is any date by which the equity release transaction8 covered by the illustration needs to commence (for example, where a fixed interest rate is only available if the lifetime mortgage8 commences before a certain date); and8(4) the prescribed text at the head of the
(1) Unless (2) applies, under the section heading "Which service are we providing you with?" the prescribed text in MCOB 9 Annex 1 under this heading must be included with a "check box" for each statement, one of which must be marked prominently to indicate the level of service provided to the customer:(2) If the level of service described in the illustration is provided by another firm, (1) may be replaced by the following:Under the section heading "Which service are we providing
(1) Under the section heading "What you have told us", the illustration must state the information that has been obtained from the customer under MCOB 9.4.6 R and MCOB 9.3.12 R (apart from MCOB 9.4.6 R(1) and MCOB 9.4.6 R(5) which are provided for in Section 5 of the illustration ), and can include brief details of any other information that has been obtained from the customer and used to produce the illustration.(2) Where the customer requests an additional illustration showing
At the end of Section 4 of the illustration a statement must be included making clear that changes to any of the information obtained from the customer, and where appropriate to the valuation of the property, could alter the details elsewhere in the illustration and encouraging the customer to ask for a revised illustration in this event.
Under the section heading "Description of this mortgage" the illustration must:(1) state the name of the mortgage lender providing the lifetime mortgage7 to which the illustration relates (a trading name used by the mortgage lender may also be stated in accordance with MCOB 9.4.2 R(6)), and the name, if any, used to market the lifetime mortgage;777(2) include a statement describing the lifetime mortgage;77(3) if the lifetime mortgage7 is linked to an investment, and payments required
Examples of types of statement that would satisfy MCOB 9.4.24 R(2) are as follows (more than one may apply to particular types of lifetime mortgage7):7(1) For a roll-up of interest mortgage:"You do not have to make any repayments during the life of this lifetime mortgage. The loan, all of the interest and charges due to [name of mortgage lender] will be repaid from the sale of your home. This will happen on your death [or the death of the last borrower] or if you move home (either
MCOB 9.4.27 R sets out some examples of descriptions of interest rate types and rates of interest that must be used in the illustration to comply with MCOB 9.4.24 R(4). If an interest rate is not described in MCOB 9.4.27 R, it must be presented in the illustration in a way that is consistent with the descriptions in MCOB 9.4.27 R.
Where the loan under the lifetime mortgage7 is divided into more than one part (for example where part of the loan is a fixed interest rate and part of the loan is a discounted variable interest rate) and the firm displays this in a tabular format in the illustration:7(1) the following text must be used to introduce the table "As this lifetime mortgage is made up of more than one part, these parts are summarised below:";(2) each part must be numbered for ease of reference in the
Under the section heading "Benefits", the illustration must include:(1) a description of the monetary amount(s), and in a box aligned to the right of the document, the monetary amount(s) that the customer will receive as a lump sum and/or as a monthly [or such other frequency as is applicable] payment;(2) where the lifetime mortgage7 is linked to an investment and the payments required on the lifetime mortgage7 will be deducted from the income from the investment, the monetary
Examples of text that would satisfy MCOB 9.4.31 R(1), depending on the nature of the7lifetime mortgage,7 are:(1) "This lifetime mortgage will provide a lump sum of £[x].";(2) "The amount you are borrowing will automatically be used to purchase a [name of linked investment product] from [name of provider]. The amount is £[x]."; and(3) "You will receive a monthly [or such other frequency as is applicable] payment from the start of your lifetime mortgage. This will be £ [state a
The illustration must include under the heading "Risks - important things you must consider" statements and warnings on the following:(1) a brief statement of the specific circumstances in which the mortgage lender is able to repossess the property;(2) a statement of how the mortgage lender will treat any negative equity arising during the life of the lifetime mortgage7 and at the time the amount borrowed under the lifetime mortgage7 is due to be repaid in full;77(3) a statement
Under the heading "Risks - important things you must consider" the illustration must also include the following if they apply:(1) for drawdown mortgages where there is a monthly (or such other frequency as may apply) cash sum payable, a statement that inflation can erode the value of the cash sum over time; (2) where:(a) the lifetime mortgage7 is linked to an investment; and7(b) the payments required on the lifetime mortgage7 will be deducted from the income from the investment;
The section headed "What you will owe and when" (A) 'Details of mortgage payments' will apply only where the customer is required to make payments to the mortgage lender during the life of the lifetime mortgage7 in respect of all or part of the interest, or part of the capital, charged on the lifetime mortgage.777 This will include those cases where the interest payment is deducted from the income provided by a linked investment product (such as an annuity) such that the customer
The heading of the column on the right-hand side of Section 8 of the illustration must state the frequency with which payments must be made by the customer. (For example, if payments are to be made on a monthly basis, the heading for this section must be "What you will owe and when" and the column must be headed "Monthly payments".1
Section 8 of the illustration must contain the following information:(1) the loan amount on which the illustration is based. This figure should include all fees, charges and insurance premiums that have been added to the loan in accordance with MCOB 9.4.21 R(3) and MCOB 9.4.21 R(4), and the following text must follow the loan amount:"which include[s] the [fees] [and] [insurance premiums] that are shown in [Section 11] [and] [Section 12] as being added to your lifetime mortgage.";(2)
MCOB 9.4.39 R(3) applies to each interest rate charged on the lifetime mortgage7 covered by the illustration. This means that it applies to different interest rates charged at different times, for example, where the interest rate changes at the end of any initial discounted, fixed or other special interest rate period.7
The following information must be included in the description of the interest rate required by MCOB 9.4.39 R(3)(c) except where MCOB 9.4.47 R applies:(1) where the interest rate can change, the word "currently" must be used to illustrate the current interest rate payable; and(2) where the interest rate changes after a given period the words "followed by" should be used to indicate this.
An example of how the information required by MCOB 9.4.39 R(3) and MCOB 9.4.43 R may be presented when there is an example term of fifteen years, and an initial fixed interest rate for a period of 22 months followed by the mortgage lender's standard variable interest rate for a period of 158 months, is as follows:"22 payments at a fixed rate of [...]%followed by158 payments at a variable rate, currently [...]%.".
Where the loan under the lifetime mortgage7 is divided into more than one part (for example, where part of the loan is on a fixed interest rate and part on a discounted variable interest rate) and the firm displays the initial cost of all parts, and the total cost, in a tabular format in the illustration, MCOB 9.4.39 R(3) and MCOB 9.4.43 R do not apply; instead:7(1) each part must be numbered for ease of reference in the illustration;(2) the loan amounts must be totalled;(3) the
Section 8 headed "What you will owe and when" (B) "Projection of roll-up of interest" applies only where all or part of the interest due over the life of the lifetime mortgage7 is added to the loan and paid to the mortgage lender on repayment of the loan. The projection should be based on the term of the lifetime mortgage7 estimated in accordance with MCOB 9.4.10 R (and if required, MCOB 9.4.12 R).77
The table showing the projection in the section headed "Projection of roll-up of interest" should show annual details in columns under the following headings:(1) "Year": this should list the years as 1,2,3... etc. The start date for year one must be an assumed date of completion of thelifetime mortgage.7 The table must show each year of the term estimated in accordance with MCOB 9.4.10 R (or if required, MCOB 9.4.12 R).7(2) "Balance at start of year": this must show the estimated
Where the customer is required to make payments to the mortgage lender on thelifetime mortgage,7 the illustration must include the following under the section heading "Will the interest rate change?":7(1) if the interest rate is fixed throughout the life of thelifetime mortgage,7 an explanation that the payments will not vary because the interest rate is fixed;7(2) if the interest rate is fixed for part of the life of thelifetime mortgage,7 an explanation of when or how increases
(1) Except where (3) applies, where the customer is required to make payments to the mortgage lender on thelifetime mortgage,7 and the customer's payments can vary with changes in interest rates at any time during the life of thelifetime mortgage,7 Section 9: "Will the interest rate change?" must also contain the following text:"The [frequency of payments from MCOB 9.4.37 R] payments shown in this illustration could be considerably different if interest rates change. For example,
The amount by which the customer's payments would increase in accordance with MCOB 9.4.54 R(1) must be calculated as follows:(1) the firm must use the total amount borrowed, or assume that all payments due on the lifetime mortgage7 have actually been paid, all additional fees and payments due have been paid, and no underpayments or overpayments have been made; and7(2) the interest rate from which the increase is calculated must be the variable interest rate charged on the lifetime
Where the customer is not required to make payments to the mortgage lender on the lifetime mortgage7 and therefore all or part of the interest is rolled up, the following information must be included under the section heading "Will the interest rate change?":7(1) if the interest rate is fixed throughout the life of thelifetime mortgage,7 an explanation that the estimated debt shown in accordance with MCOB 9.4.51 R(6) will not vary because the interest rate is fixed;7(2) if the
Where the customer is not required to make payments to the mortgage lender on the lifetime mortgage7 and therefore all or part of the interest is rolled up, Section 9: "Will the interest rate change?" must also contain (if applicable):7(1) if the interest rate is variable, the following text:"If the interest rate increases, the amount you owe will also increase. If the interest rate was [one percentage point higher than shown MCOB 9.4.51 R(4)(b)] throughout the example term of
Where the customer is required to make payments to the mortgage lender on the lifetime mortgage7 in respect of the interest payable, and therefore the amount outstanding on the lifetime mortgage7 will broadly remain unchanged, Section 10: "How the value of your home could change" must contain the following text:"The amount you owe will usually stay the same over the life of the mortgage so the amount due to [name of mortgage lender] when the mortgage is repaid will be [amount
Where the customer is not required to make payments to the mortgage lender on the lifetime mortgage7 and therefore all or part of the interest is rolled up, Section 10: "How the value of your home could change" must contain the following text:"When you look at how the amount you owe goes up, remember also that property prices can go up or down, and this can affect the amount of money left over for you or your estate after the mortgage is repaid to [name of mortgage lender].".
Section 10: "How the value of your home could change" must contain the following text in addition to the text in accordance with MCOB 9.4.62 R or MCOB 9.4.63 R:"Based on the estimated value of your home now of [insert amount from MCOB 9.4.6 R(3)] this example shows what the value of your home would be after [insert term from MCOB 9.4.10 R or MCOB 9.4.12 R] years if the value went up by 1% each year or went down by 1% each year. Remember also that the mortgage may run for more
Under the section heading "What fees must you pay?" the illustration must:(1) itemise all the fees that are included in the calculation of the APR in accordance with MCOB 10 (Annual Percentage Rate), excluding any charges for insurance set out in Section 12 in accordance with MCOB 9.4.72 R; and1(2) include a statement at the end of the section using the following text:"You may have to pay other taxes or costs in addition to any fees shown here.".
An example of a fee that would be included in Section 11 would be an administrative charge to redeem thelifetime mortgage.7 An example of a fee that would not be included would be a fee payable by the customer to insure their property elsewhere (however this would need to be stated in the separate "Insurance" section as required by MCOB 9.4.72 R). Where fees are payable only on early repayment of thelifetime mortgage.7 they should not be stated here (however these fees would need
The fees included in this section in accordance with MCOB 9.4.65 R must be itemised under the relevant sub-headings as follows:(1) the fees that are payable by the customer to the mortgage lender must be itemised under the sub-heading "Fees payable to [name of mortgage lender]";(2) the remaining fees must be itemised under the sub-heading: "Other fees"; and(3) (a) if there are no fees to be itemised in accordance with (1), the sub-heading must be retained and a statement must
The following information must be provided for each fee included in this section of the illustration in accordance with MCOB 9.4.65 R(1):(1) a description of the fee;(2) the amount payable by the customer recorded in a column headed "Fee amount" on the right-hand side of this section;(3) for fees included under the sub-heading "Other fees", to whom the fee is payable;(4) when the fee is payable;(5) whether or not the fee is refundable, and if so, the extent to which it is refundable;(6)
(1) If a higher lending charge is payable by the customer, the following text must be used to describe such a charge for the purposes of MCOB 9.4.68 R:"A higher lending charge is payable because you are borrowing [insert the ratio of the mortgage amount (from MCOB 9.4.13 R) to the property's price or value (from MCOB 9.4.6 R(3))] of the property's [estimated] [price/value]."(2) If the customer has asked for any fees to be added to the loan, this must be stated alongside each fee.2(3)
(1) Under the section heading "Insurance" the illustration must include details of:(a) insurance which is a tied product and(b) insurance which is required as a condition of the lifetime mortgage7 which is not a tied product7(2) Under this section heading a firm may also provide details of insurance which is optional for the customer to take out.(3) It must be clear to the customer which products he is required to purchase under which circumstances (for example, where both a tied
The following information must be included under the sub-heading "Insurance you must take out as a condition of this mortgage but that you do not have to take out through [insert name of mortgage lender or where relevant the name of the mortgage intermediary, or both]":(1) if the lifetime mortgage7 requires the customer to take out an insurance policy (other than that which is a tied product which the customer is obliged to purchase through the mortgage lender or where relevant
Under the sub-heading "Insurance you must take out as a condition of this mortgage but that you do not have to take out through [insert name of mortgage lender or where relevant the name of the mortgage intermediary, or both]", the illustration should not include any insurance policy that may be taken out by a mortgage lender itself to protect its own interests rather than the customer's interests, for example, because of the ratio of the loan amount to the property value.1
If the cost of any insurance that the mortgage lender might take out to protect its own interests because of the ratio of the loan to the property value is passed on to the customer, it will be shown elsewhere in the illustration, for example as a higher lending charge or in the interest rate charged.
A firm may include in the illustration, under the sub-heading "Optional insurance", quotations (estimated where necessary) for any insurance products (other than the insurance products covered elsewhere in the illustration in accordance with MCOB 9.4.72 R and MCOB 9.4.76 R) that the firm issuing the illustration wishes to sell to the customer.
(1) If any quotations for insurance are included in the illustration in accordance with MCOB 9.4.73 R(3), MCOB 9.4.76 R(1) or MCOB 9.4.79 R, the illustration:(a) must include a brief description only of the type of insurance (full details of the insurance cover may however be provided separately); and(b) (i) must include the total price to be paid by the customer in a column on the right hand side of the illustration under the heading "[insert frequency of payments quoted] payments";
The purpose of the illustration is to provide the customer with details of the cost of borrowing the amount required over the example term from MCOB 9.4.6 R and MCOB 9.4.10 R (or MCOB 9.4.12 R). Section 14 has been designed specifically to allow examples of the effect of any additional features of the lifetime mortgage7 such as a linked current account. Examples of these features should therefore be shown in Section 14 and not in Section 15 or Section 8 of the illustration.7
Where the illustration is issued to a customer by, or on behalf of, a mortgage intermediary, Section 16 "Using a mortgage intermediary" must be included in the illustration and must include the following:(1) unless MCOB 9.4.120 R applies, a clear statement of the amount payable (either directly or indirectly) by the mortgage lender to the mortgage intermediary, or to any third parties; and(2) the name of the mortgage lender who will make the payment, the name of the mortgage intermediary
8The heading of the right-hand column of Section 8 of the illustration must state the frequency with which payments must be made by the customer. (For example, if payments are to be made on a monthly basis, the heading for this section must be "What you will have to pay and when" and the column must be headed "Monthly payments").
8Section 8 of the illustration must contain the following information:(1) a statement at the beginning of the section regarding rent and charges using the following text: "A home reversion plan is not a loan. Once you have paid the fees shown in section 9, you will only have to pay the charges shown below.";(2) the amount and frequency of annual rent, if any, to be paid by the customer; and(3) a description and the amount of other periodic charges to be paid by the customer.
8The fees included in this section must be itemised under the relevant sub-headings as follows:(1) the fees that are payable by the customer to the reversion provider must be itemised under the sub-heading "Fees payable to [name of reversion provider]";(2) the remaining fees must be itemised under the sub-heading: "Other fees"; and(3) (a) if there are no fees to be itemised in accordance with (1), the sub-heading must be retained and a statement must be included that no fees apply;(b)
8The following information must be provided for each fee included in this section of the illustration:(1) a description of the fee;(2) the amount payable by the customer specified in the column on the right-hand side of the section;(3) for fees included under the sub-heading "Other fees", to whom the fee is payable;(4) when the fee is payable;(5) whether or not the fee is refundable, and if so, the extent to which it is refundable;(6) which fees (if any) are estimated and based
(1) 8If any fees are to be deducted from the amount to be released, this must be stated alongside each fee.(2) If the customer has the option of deducting from the amount to be released any of the fees included in this section, the following text must be included: "If you wish you can deduct [this/these/the {type of fee}] fee(s) from the amount to be released under this home reversion plan. This will reduce the amount you get to £ [insert amount of the amount to be released minus
(1) 8Under the section heading "Insurance" the illustration must include details of:(a) insurance which is a tied product; and(b) insurance which is required as a condition of the home reversion plan which is not a tied product.(2) Under this section heading a firm may also provide details of insurance which is optional for the customer to take out.(3) It must be clear to the customer which products he is required to purchase under which circumstances (for example, where both
8The following information must be included if the home reversion plan requires the customer to take out insurance that is a tied product either through the reversion provider or the reversion intermediary:(1) details of which insurance is a tied product;(2) the name of the firm imposing the requirement for the insurance;(3) for how long the customer is obliged to purchase the insurance;(4) an accurate quotation or a reasonable estimate of any payments the customer needs to make
8The following information must be included if the insurance required, as a condition of the home reversion plan, is not a tied product:(1) a brief statement of the type of insurance the firm requires; a quotation for such insurance may be included in the illustration, estimated where necessary; and(2) if a charge is made if the customer does not arrange insurance through the reversion provider or the reversion intermediary, this must be stated, together with the amount of the
(1) 8If any quotations for insurance are included in the illustration it:(a) must include a brief description of the type of insurance; (b) must include the total price to be paid by the customer in a column on the right hand side of the illustration under the heading "[insert frequency of payments quoted] payments"; and(c) may refer the customer to the relevant insurance product disclosure documentation.(2) If the customer has asked to deduct any insurance premiums or insurance-related
8Where the illustration is issued to a customer by, or on behalf of, a reversion intermediary Section 12 "Using a home reversion intermediary" must be included in the illustration and must include the following:(1) a clear statement of the amount payable (either directly or indirectly) by the reversion provider to the reversion intermediary, or to any third parties; and(2) the name of the reversion provider who will make the payment, the name of the reversion intermediary and
8Any material inducements provided by a reversion provider, whether directly or indirectly, to a reversion intermediary or third party (unless the payment only reflects the cost of outsourcing work relating to the processing of home reversion applications by a firm unconnected to the reversion intermediary) must be quantified in cash terms (see MCOB 2.3.7 R). This enables the cash values to be included in the illustration.
8This section must: (1) follow Section 11 "What happens if you do not want this home reversion plan any more?", unless the illustration is issued by a reversion intermediary, in which case it must follow Section 12 "Using a home reversion intermediary"; and(2) include the name, address and contact point of the firm providing the illustration.
Before a customer submits an application to a firm for a further advance on an existing regulated mortgage contract or for a further advance that is a new regulated mortgage contract, if the further advance requires the approval of the mortgage lender, the firm must provide the customer with an illustration that complies with the requirements of MCOB 5 (Pre-application disclosure) and MCOB 7.6.9 R to MCOB 7.6.17 R for the further advance, unless an illustration has already been
The illustration provided in accordance with MCOB 7.6.7 R must:(1) be based on the amount of the further advance only;(2) use the term 'additional borrowing' in place of the term 'mortgage' where appropriate throughout the titles and text of the illustration;(3) include an additional section headed: 'Total borrowing' and numbered '7a' after Section 7, including the following text:(a) "This section gives you information about how your mortgage will be affected by taking out this
(1) (In the case of a business illustration), MCOB 5.6.16 R is replaced with the following: "Section 1: 'About this illustration' Under the section heading 'About this illustration', the following text must be included:'We are required by the Financial Services Authority (FSA) - the independent watchdog that regulates financial services - to provide you with this illustration.' "(2) (In all other cases), MCOB 5.6.16 R is replaced with the following; "Section 1: 'About this illustration'
(1) Where the further advance for which the customer has applied is in the form of an annual insurance premium secured by a first legal charge, a firm:(a) may, instead of providing an illustration in accordance with MCOB 7.6.7 R, provide confirmation of the matters required by MCOB 7.6.5 R; and(b) where (a) applies use the following text:"Your annual insurance premium has been/will be added to your mortgage account [unless you pay it by dd/mm/yy]. If you choose to pay it in full
Before a customer submits an application to a firm to change all or part of a regulated mortgage contract from one interest rate to another (for example, a transfer from a variable rate regulated mortgage contract to a fixed rate regulated mortgage contract, or from one fixed rate regulated mortgage contract to another fixed rate regulated mortgage contract), the firm must provide the customer with an illustration for the whole loan that complies with the requirements of MCOB
If a number of different firms are involved in relation to the transaction referred to in MCOB 7.6.18 R, having regard to MCOB 2.5.4 R(2), those firms should take reasonable steps to establish which one of them is responsible for providing the customer with the illustration required by MCOB 7.6.18 R.
MCOB 7.6.20 R allows a firm to make changes to wording and to add, remove or alter information that would otherwise be misleading to the customer. For example, a firm could replace the statement in Section 3 of the illustration, explaining that if information provided by the customer changes, the illustration may be affected, with a statement explaining that the illustration is based on information gathered in the past, which may no longer be accurate.
The FSA would not view: (1) a simple notification of the death of a party to the regulated mortgage contract as an application for the purposes of MCOB 7.6.22 R; or1(2) a guarantor as a party to a regulated mortgage contract;1so MCOB 7.6.22 R does not mean that someone becoming a surviving joint borrower on or a guarantor to the regulated mortgage contract should receive an illustration.1
If a number of different firms are involved in relation to the transaction referred to in MCOB 7.6.22 R, having regard to MCOB 2.5.4 R(2), those firms should take reasonable steps to establish which one of them is responsible for providing the customer with the illustration required by MCOB 7.6.22 R.
MCOB 7.6.25 R allows the firm to make changes to wording and to add, remove or alter information that would otherwise be misleading to the customer. For example, a firm may choose not to include a property valuation in the 'What you have told us' section of the illustration if the property value does not have a bearing on the terms of the regulated mortgage contract.
Where MCOB 7.6.28 R applies and the customer simultaneously requests a rate switch or the addition or removal of a party to the contract, a firm will not be required to provide the information in accordance with MCOB 7.6.28 R where it is provided as part of an illustration issued in accordance with MCOB 7.6.18 R or MCOB 7.6.22 R.
Where a customer simultaneously requests a rate switch and the addition or removal of a party to the loan, a firm will not be required to provide the customer with a separate illustration for each in accordance with MCOB 7.6.18 R and MCOB 7.6.22 R. The firm may provide the customer with a single illustration that complies with the requirements of MCOB 5 (Pre-application disclosure) for both.1
In general terms, simply giving information, without making any comment or value judgement on its relevance to decisions which a person may make, is not advice. In this respect, it is irrelevant that a person may be providing information on a single contract of insurance or on two or more. This means that a person may provide information on a single contract of insurance without necessarily being regarded as giving advice on it. PERG 5.8.11 G has guidance on the circumstances
In the case of article 53, information relating to buying or sellingcontracts of insurance may often involve one or more of the following:(1) an explanation of the terms and conditions of a contract of insurance whether given orally or in writing or by providing leaflets and brochures;(2) a comparison of the features and benefits of one contract of insurance compared to another;(3) the production of pre-purchase questions for a person to use in order to exclude options that would
In the FSA's opinion, however, such information is likely to take on the nature of advice if the circumstances in which it is provided give it the force of a recommendation. Examples of situations where information provided by a person (P) might take the form of advice are given below.(1) P may provide information on a selected, rather than balanced and neutral, basis that would tend to influence the decision of a person. This may arise where P offers to provide information about
A key issue for those firms proposing to use pre-purchase questioning is whether the specific questioning used may amount to advice. There are two main aspects:(1) advice must relate to a particular contract of insurance (see PERG 5.8.4 G (Advice must relate to a particular contract of insurance)); and(2) the distinction between information and advice (see PERG 5.8.8 G to PERG 5.8.11 G (Advice or information)).Whether or not pre-purchase questioning in any particular case is advising
The potential for variation in the form, content and manner of pre-purchase questioning is considerable, but there are two broad types. The first type involves providing questions and answers which are confined to factual matters (for example, the amount of the cover). In the FSA's view, this does not itself amount to advising on contracts of insurance, if it involves the provision of information rather than advice. There are various possible scenarios, including the following:(1)
The second type of pre-purchase questioning involves providing questions and answers incorporating opinion, judgement or recommendation. There are various possible scenarios, including the following:(1) the pre-purchase questioning may not lead to the identification of any particular contract of insurance; in this case, the questioner has provided advice, but it is generic advice and does not amount to advising on contracts of insurance; and(2) the pre-purchase questioning may
In the case of PERG 5.8.18G (2) and similar scenarios, the FSA considers that it is necessary to look at the process and outcome of pre-purchase questioning as a whole. It may be that the element of advice incorporated in the questioning can properly be viewed as generic advice if it were considered in isolation. But although the actual advice may be generic, the process has ended in identifying one or more particular contracts of insurance. The combination of the generic advice
An important exclusion from advising on contracts of insurance relates to advice given in periodical publications, regularly updated news and information services and broadcasts (article 54 of the Regulated Activities Order (Advice given in newspapers etc)). The exclusion applies if the principal purpose of the publication or service taken as a whole (including any advertising content) is neither to give advice of a kind mentioned in article 53 (Advising on investments) or article
(1) If a firm offers to entering into a regulated mortgage contract with a customer, it must provide the customer with an offer document containing an illustration.(2) The firm's offer in the offer document must be on the basis of the information set out in the illustration provided in accordance with (1).
The illustration provided as part of the offer document in accordance with MCOB 6.4.1 R (1) must meet the requirements of MCOB 5.6 (Content of illustrations) with the following modifications:(1) the illustration must be suitably adapted and revised to reflect the fact that the firm is making an offer to a customer and updated to reflect changes to, for example, the interest rate, charges, the exchange rate or the APR required by MCOB 10 (Annual Percentage Rate), at the date the
In adapting and revising the illustration that is part of the offer document in accordance with MCOB 6.4.4 R(1) a firm must:(1) avoid amending the format of the information required by MCOB 5.6 (Content of illustrations) where possible, since this could result in the illustration in the offer document being difficult to compare with the illustration originally provided to the customer in accordance with MCOB 5.5.1 R;(2) use, where possible, the same headings, ordering of information,
In adapting and revising the illustration in accordance with MCOB 6.4.4 R(1), a firm may:(1) add extra information at the beginning and end of the illustration, such as conditions which are not covered by the illustration;(2) include greater detail within each of the specified sections than that included in an illustration provided in accordance with MCOB 5 (Pre-application disclosure); and(3) leave blank, except for the text 'not applicable', sections that are irrelevant, such
In complying with MCOB 6.4.11 R (6) the firm is not required to repeat in this section of the offer document the cash amounts of the early repayment charges set out in the illustration provided as part of the offer document. The firm may instead insert a reference to the relevant section of that illustration.
Table of rules in MCOB 5 replaced by rules in MCOB 9: This table belongs to MCOB 9.3.1R
Subject |
Rule(s) or guidance |
Rule(s) or guidance replaced by: |
Accuracy of the illustration |
||
Information that is not an illustration |
MCOB 5.4.14R |
MCOB 9.3.11R |
Providing anillustration |
MCOB 5.5.15R - |
MCOB 9.3.12R - |
Content ofillustration |
MCOB 5.6 |
MCOB 9.4 |
A mortgage intermediary must take reasonable steps to ensure that an illustration which it issues, or which is issued on its behalf, other than that provided by a mortgage lender:(1) is accurate within the following tolerances:(a) no more than one percent or £1, whichever is the greater, below the actual figures charged by the mortgage lender for the following:(i) the total amount payable in Section 15 of the illustration;(ii) the amounts that the customer must pay by regular
It is the responsibility of an equity release intermediary3 to ensure an illustration is accurate.3 However, where a firm can show that it was reasonable for it to rely on information provided to it by another person, other than the equity release provider, he may be able to rely on that person (see MCOB 2.5.2 R).33
An offer document may not always exactly match the illustration provided before application even when the equity release3 requirements have not changed. For example, where a fixed rate has a defined end date, the total amount payable may be different because the number of payments at the fixed rate has reduced, or the estimated amount of interest to be charged has changed, assuming a later date at which the lifetime mortgage3will start.33
In meeting a request for written information specific to the customer's requirements on a particular equity release transaction (see MCOB 5.5.1 R (2)(c))3, the firm must not delay the provision of the illustration by requesting information other than:3(1) the information necessary to personalise the illustration, if the firm does not already know it;3(2) where the firm is uncertain whether the transaction will be an equity release transaction,3 such information as is necessary
A firm is not required to prepare:(1) a document, if another firm has agreed to prepare it; or(2) a key features document for:(a) a unit in a UCITS scheme or3 a simplified prospectus scheme; or(b) a unit in an EEA UCITS scheme which is a recognised scheme; or33(c) a unit in a key features scheme, if it prepares a simplified prospectus, or the information appears with due prominence in another document, instead; or(d) a stakeholder pension scheme, or personal pension scheme that
1A firm that agrees to start facilitating the payment of an adviser charge or consultancy charge, or an increase in such a charge, from an in-force packaged product, must prepare sufficient information for the retail client to be able to understand the likely effect of that facilitation, in good time before that information has to be provided.
Table
A key features document for a packaged product must: |
||
(1) |
Include the title: ‘key features of the [name of product]’; |
|
(2) |
describe the product in the order of the following headings, and by giving the following information under those headings: |
|
Heading |
Information to be given |
|
‘Its aims’ |
A brief description of the product’s aims |
|
‘Your commitment’ or ‘Your investment’ |
What a retail client is committing to or investing in and any consequences of failing to maintain the commitment or investment |
|
‘Risks’ |
The material risks associated with the product, including a description of the factors that may have an adverse effect on performance or are material to the decision to invest |
|
‘Questions and Answers’ |
(in the form of questions and answers) the principle terms of the product, what it will do for a retail client and any other information necessary to enable a retail client to make an informed decision. |
|
3A key features document for a short-term money market fund, a money market fund or a qualifying money market fund must include a statement identifying it as such a fund and a statement that the authorised fund's investment objectives and policies will meet the conditions of the definition of short-term money market fund, money market fund or qualifying money market fund, as appropriate.
4A key features document for a feeder NURS must include:(1) a statement identifying it as such a scheme;(2) information specific to the feeder NURS and its qualifying master scheme which enables investors to understand the qualifying master scheme's key particulars; and(3) a description and explanation of any material differences between the risk profile of the feeder NURS and that of the qualifying master scheme.
An operator of an unregulated collective investment scheme must not accept a retail client asa participant in the scheme unless it has taken reasonable steps to offer and, if requested, provide to the potential participant scheme documents which adequately describe how the operation of the scheme is governed.
An operator's scheme documents may consist of any number of documents provided that it is clear that collectively they constitute the scheme documents and provided the use of several documents in no way diminishes the significance of any of the statements which are required to be given to the potential participant.
The scheme documents of an unregulated collective investment scheme (if they exist) should make it clear that if a participant is reclassified as a retail client, this reclassification will not affect certain scheme management activities of the operator of the scheme. In particular, despite such a reclassification, the operator will not be required to comply with the best execution provisions applying to an operator of a collective investment scheme. It should be noted that there
Where the scheme is an unregulated collective investment scheme and no current participant in the scheme was a retail client on joining the scheme as a participant, the scheme documents must include a statement that:(1) explains that if a participant is reclassified as a retail client subsequent to joining the scheme as a participant, then the operator may continue to treat all participants in the scheme as though they were not retail clients; (2) explains that if a participant
- (1)
In order to provide adequate information to describe how the operation of the scheme is governed, an operator of an unregulated collective investment scheme should include in the scheme documents a provision about each of the items of relevant information set out in the following table (Content of scheme documents).
- (2)
Compliance with (1) may be relied on as tending to establish compliance with COBS 18.5.5 R.
- (3)
Contravention of (1) may be relied on as tending to establish contravention of COBS 18.5.5 R.
Table: Content of scheme documents
Content of scheme documents
The scheme documents should include provision about: |
|||
(1) |
Regulator The firm statutory status in accordance with GEN 4 Annex 1 R (Statutory status disclosure); |
||
(2) |
Services the nature of the services that the operator will provide in relation to the scheme; |
||
(3) |
Payments for services details of any payment for services payable by the scheme or from the property of the scheme or participants in the scheme to the operator, including where appropriate: |
||
(a) |
the basis of calculation; |
||
(b) |
how it is to be paid and collected; |
||
(c) |
how frequently it is to be paid; and |
||
(d) |
whether or not any other payment is receivable by the operator (or to its knowledge by any of its associates) in connection with any transactions effected by the operator with or for the scheme, in addition to or in lieu of any fees; |
||
(4) |
Commencement when and how the operator is appointed; |
||
(5) |
Accounting the arrangements for accounting to the scheme or participants in the scheme for any transaction effected; |
||
(6) |
Termination method how the appointment of the operator may be terminated; |
||
(7) |
Complaints procedure how to complain to the operator and a statement that the participants in the scheme may subsequently complain direct to the Financial Ombudsman Service; |
||
(8) |
Compensation whether or not compensation may be available from the compensation scheme should the operator be unable to meet its liabilities, and information about any other applicable compensation scheme; and, for each applicable scheme, the extent and level of cover and how further information can be obtained; |
||
(9) |
Investment objectives the investment objectives for the portfolio of the scheme; |
||
(10) |
Restrictions |
||
(a) |
any restrictions on: |
||
(i) |
the types of investments or property which may be included in the portfolio of the scheme; |
||
(ii) |
the markets on which investments or property may be acquired for the portfolio of the scheme; |
||
(iii) |
the amount or value of any one investment or asset, or on the proportion of the portfolio of the scheme which any one investment or asset or any particular kind of investment or asset may constitute; or |
||
(b) |
that there are no such restrictions; |
||
(11) |
Holding scheme assets |
||
(a) |
if it is the case, that the operator will: |
||
(i) |
hold money on behalf of the scheme or be the custodian of investments or other property of the scheme; or |
||
(ii) |
arrange for some other person to act in either capacity and, if so, whether that person is an associate of the operator identifying that person and describing the nature of any association; and |
||
(b) |
in either case: |
||
(i) |
how any money is to be deposited; |
||
(ii) |
the arrangements for recording and separately identifying registrable investments of the scheme and, where the registered holder is the operator's own nominee, that the operator will be responsible for the acts and omissions of that person; |
||
(iii) |
the extent to which the operator accepts liability for any loss of the investment of the scheme; |
||
(iv) |
the extent to which the operator or any other person mentioned in (11)(a)(ii), may hold a lien or security interest over investments of the scheme; |
||
(v) |
where investments of the scheme will be registered collectively in the same name, a statement that the entitlements of the scheme may not be identifiable by separate certificates or other physical documents of title, and that, should the operator default, any shortfall in investments of the scheme registered in that name may be shared proportionately among all schemes and any other customers of the operator whose investments are so registered; |
||
(vi) |
whether or not investments or other property of the scheme can be lent to, or deposited by way of collateral with, a third party and whether or not money can be borrowed on behalf of the scheme against the security of those investments or property and, if so, the terms upon which they may be lent or deposited; |
||
(vii) |
the arrangements for accounting to the scheme for investments of the scheme, for income received (including any interest on money and any income earned by lending investments or other property) of the scheme, and for rights conferred in respect of investments or other property of the scheme; |
||
(viii) |
the arrangements for determining the exercise of any voting rights conferred by investments of the scheme; and |
||
(ix) |
where investments of the scheme may be held by an eligible custodian outside the United Kingdom, a general statement that different settlement, legal and regulatory requirements, and different practices relating to the segregation of those investments, may apply; |
||
(12) |
Clients' money outside the United Kingdom if it is the case, that the operator may hold the money of the scheme in a client bank account outside the United Kingdom; |
||
(13) |
Exchange rates if a liability of the scheme in one currency is to be matched by an asset in a different currency, or if the services to be provided to the operator for the scheme may relate to an investment denominated in a currency other than the currency in which the investments of the scheme are valued, a warning that a movement of exchange rates may have a separate effect, unfavourable or favourable, on the gain or loss otherwise made on the investments of the scheme; |
||
(14) |
Stabilised investments if it is the case, that the operator is to have the right under the schemedocuments to effect transactions in investments the prices of which may be the subject of stabilisation; |
||
(15) |
Conflict of interest and material interest if it is the case, that the operator is to have the right under the agreement or instrument constituting the scheme to effect transactions on behalf of the scheme in which the operator has directly or indirectly a material interest (except for an interest arising solely from the participation of the operator as agent for the scheme), or a relationship of any description with another party which may involve a conflict with the operator's duty to the scheme, together with a disclosure of the nature of the interest or relationship; |
||
(16) |
Use of dealing commission if the operator receives goods or services in addition to the execution of its customer orders in accordance with the section on the use of dealing commission, the prior disclosure required by the rule on prior disclosure (see COBS 11.6.2 R); |
||
(17) |
Acting as principal if it is the case, that the operator may act as principal in a transaction with the scheme; |
||
(18) |
Stock lending if it is the case, that the operator may undertake stock lending activity with or for the scheme specifying the type of assets of the scheme to be lent, the type and value of relevant collateral from the borrower and the method and amount of payment due to the scheme in respect of the lending; |
||
(19) |
Transactions involving contingent liability investments |
||
(a) |
if it is the case, that the agreement or instrument constituting the scheme allows the operator to effect transactions involving contingent liability investments for the account of the portfolio of the scheme; |
||
(b) |
if applicable, whether there are any limits on the amount to be committed by way of margin and, if so, what those limits are; and |
||
(c) |
if applicable, that the operator has the authority to effect transactions involving contingent liability investments otherwise than under the rules of a recognised investment exchange or designated investment exchange and in a contract traded thereon; |
||
(20) |
Periodic statements |
||
(a) |
the frequency of any periodic statement (this should not be less than once every 12 months) except where a periodic statement is not required (see COBS 18.5.13R); and |
||
(b) |
whether those statements will include some measure of performance, and, if so, what the basis of that measurement will be; |
||
(21) |
Valuation the bases on which assets comprised in the portfolio of the scheme are to be valued; |
||
(22) |
Borrowings if it is the case, that the operator may supplement the funds in the portfolio of the scheme and, if it may do so: |
||
(a) |
the circumstances in which the operator may do so; |
||
(b) |
whether there are any limits on the extent to which the operator may do so and, if so, what those limits are; and |
||
(c) |
any circumstances in which such limits may be exceeded; |
||
(23) |
Underwriting commitments if it is the case, that the operator may for the account of the portfolio of the scheme underwrite or sub-underwrite any issue or offer for sale of securities, and: |
||
(a) |
whether there are any restrictions on the categories of securities which may be underwritten and, if so, what these restrictions are; and |
||
(b) |
whether there are any financial limits on the extent of the underwriting and, if so, what these limits are; |
||
(24) |
Investments in other collective investment schemes whether or not the portfolio may contain units in a collective investment scheme either operated or advised by the operator or by an associate of the operator or in a collective investment scheme which is not a regulated collective investment scheme; |
||
(25) |
Investments in securities underwritten by the operator whether or not the portfolio may contain securities of which any issue or offer for sale was underwritten, managed or arranged by the operator or by an associate of the operator during the preceding 12 months. |
||
Table of modified cross-references to other rules:
This table belongs to MCOB 9.5.1 R.
Subject |
Rule or guidance |
Reference in rule or guidance |
To be read as a reference to: |
Application: What? |
MCOB 6.1.5R |
MCOB 6 |
|
Content of offer document |
MCOB 6.1.6G |
MCOB 5.6 |
MCOB 9.4 |
Purpose |
MCOB 6.2.1G |
MCOB 6 |
|
General |
MCOB 6.3.2R |
||
Records |
MCOB 6.4.3R |
||
Modifications to the illustration |
MCOB 6.4.5G |
MCOB 6.4.4R(5)(b) |
MCOB 9.5.4R(6)(b) |
Modifications to the illustration |
MCOB 6.4.6R |
MCOB 6.4.4(1) |
MCOB 9.5.4R(1) |
Modifications to the illustration |
MCOB 6.4.6R(1) and (2) |
MCOB 5.6 |
MCOB 9.4 |
Modifications to the illustration |
MCOB 6.4.7R |
MCOB 6.4.4R(1) |
MCOB 9.5.4R(1) |
Modifications to the illustration |
MCOB 6.4.7R(2) |
MCOB 5 |
MCOB 9 |
Modifications to the illustration |
MCOB 6.4.7R(3) |
||
Modifications to the illustration |
MCOB 6.4.7R(3) |
||
Other information contained in the offer document |
MCOB 6.4.13R |
MCOB 5.6.122R |
MCOB 9.4.126R |
Offer documents in place of illustrations |
MCOB 6.6.1R |
Table of rules in MCOB 6 replaced by rules in MCOB 9:
This table belongs to MCOB 9.5.1 R
Subject |
Rule |
Rule replaced by |
Modifications to the illustration |
MCOB 6.4.4R |
MCOB 9.5.4R |
The illustration provided as part of the offer document in accordance with MCOB 6.4.1 R(1) must meet the requirements of MCOB 9.4, with the following modifications:(1) the illustration must be suitably adapted and revised to reflect the fact that the firm is making an offer to a customer and updated to reflect changes to, for example, for a lifetime mortgage3 the interest rate, charges, the exchange rate or the APR required by MCOB 10 (Annual Percentage Rate) at the date the illustration
(1) The information to be provided in accordance with the rules in this section must be provided in good time before a firm carries on designated investment business or ancillary services with or for a retail client.(2) A firm may provide that information immediately after it begins to carry on that business if:(a) the firm was unable to comply with (1) because, at the request of the client, the agreement was concluded using a means of distance communication which prevented the
A firm must notify a client in good time about any material change to the information provided under the rules in this section which is relevant to a service that the firm is providing to that client. That notification must be given in a durable medium if the information to which it relates is given in a durable medium. [Note: article 29(6) of the MiFID implementing Directive]
(1) The operator of a recognised scheme must maintain facilities in the United Kingdom for any person, for inspection (free of charge) and for the obtaining (free of charge, in the case of the documents at (c) and (d), and otherwise at no more than a reasonable charge) of copies in English of: (a) the instrument constituting the scheme;(b) any instrument amending the instrument constituting the scheme; (c) the latest prospectus (which must include the address where the facilities
(1) The operator must maintain facilities in the United Kingdom for any person where: (a) information in English can be obtained about prices of units in the scheme; and(b) a participant may redeem or arrange for redemption of units in the scheme and obtain payment. (2) An operator is treated as complying with paragraph (1) if it ensures participants may sell their units on an investment exchange at a price not significantly different from net asset value; and if so, must inform
(1) The operator must maintain facilities in the United Kingdom at which the unitholder of a bearer certificate may obtain free of charge: (a) payment of dividends; and(b) details or copies of any notices which have been given or sent to participants in the scheme. (2) The operator must state:(a) the nature of the right represented by the units in the scheme; and(b) whether persons other than unitholders can vote at meetings of unitholders and, if so, who those persons are.
(1) The address of the facilities maintained by the operator in accordance with this section and the details of the facilities so maintained must be stated in the prospectus of the scheme.(2) The address of the facilities referred to in (1) must be the address of the operator's principal place of business in the United Kingdom, or, if there is no such address,, the alternative address in paragraph (3).(3) The alternative address is such convenient address as the operator determines,
A key features document and a key features illustration2must also:(1) (if it is a key features document) 2be produced and presented to at least the same quality and standard as the sales or marketing material used to promote the relevant product;(2) (if it is a key features document) 2display the firm's brand at least as prominently as any other;(3) (if it is a key features document or a key features illustration which does not form an integral part of the key features document)
(1) Where the regulated mortgage contract is for a business purpose, a firm may choose to provide a customer with a business offer document instead of the offer document referred to in MCOB 6.4.1 R.(2) If a firm provides a customer with a business offer document in accordance with (1), it must ensure that:(a) an updated business illustration, as required by MCOB 5.7 (Pre-application disclosure for business loans), forms part of the business offer document; and(b) subject to the
The illustration provided in accordance with MCOB 7.6.7 R must;(1) be based on the amount of the further advance only;(2) use the term 'additional borrowing' in place of the term 'lifetime mortgage' where appropriate throughout the titles and text of the illustration;(3) include an additional section headed: 'Total borrowing' and numbered '9' after Section 8, (with subsequent sections of the illustration renumbered accordingly) including the following text:(a) "This section gives
MCOB 9.4.18 R is replaced with the following: "Section 1: 'About this information' Under the section heading 'About this information', the following text must be included:"We are required by the Financial Services Authority (FSA) - the independent watchdog that regulates financial services - to provide you with this illustration. All firms selling lifetime mortgages are required to give illustrations, like this one, that contain similar information presented in the same way."
If a customer requests, or agrees to, a change to a lifetime mortgage3 (other than a change as described in MCOB 7.6.7 R to MCOB 7.6.27 R (as modified by MCOB 9)) that changes the amount of each payment due (where payments are required), a firm must provide the customer with the following information, in a single communication, before the change takes effect:3(1) the amount outstanding on the lifetime mortgage3 at the date the change is requested;3(2) the payment due and the frequency
For the purposes of calculating the unit price in the trade confirmation information or periodic information, where the order is executed in tranches, the firm may supply the client with information about the price of each tranche or the average price. If the average price is provided, the firm must supply the retail client with information about the price of each tranche upon request. [Note: article 40(4) of the MiFID implementing Directive]
When providing a periodic statement to a retail client, a firm should consider whether to include:(1) the collateral value in respect of any contingent liability transaction in the client's portfolio during the relevant period; and(2) option account valuations in respect of each open option written by the client in the client's portfolio at the end of the relevant period; stating:(a) the share, future, index or other investment involved;(b) the trade price and date for the opening
In relation to business that is not MiFID or equivalent third country business, a firm need not provide a periodic statement:(1) to a client habitually resident outside the United Kingdom if the client concerned has so requested or the firm has taken reasonable steps to establish that he does not wish to receive it;(2) in respect of a CTF, if the statement provided under the CTF Regulations contains the periodic information.2
There are other pre-contract information requirements outside this chapter, including:(1) for financial promotions, inthe financial promotion rules;55(2) for designated investment business, inCOBS 8 (Client agreements), COBS 5 (Distance Communications), COBS 6 (Information about the firm, its services and remuneration), COBS 13 and 14 (which relate to product information)5 and CASS (Client assets);5(3) for non-investment insurance contracts3, distance communication requirements