Related provisions for FEES 13.2.10
61 - 80 of 605 items.
This chapter applies to a firm that:(1) (a) has a Part 4A Permission; or(b) is an incoming EEA firm with a branch in the United Kingdom; or(c) is an incoming Treaty firm with a branch in the United Kingdom; and(2) is in one of the following activity groups listed in Part 1 of FEES 4 Annex 1A: (a) A.1 Deposit acceptors;(b) A.4 Insurers — life;(c) A.7 Portfolio managers excluding Class (1)A firms;(d) A.9 Managers and depositaries of investment funds, and operators of collective
(1) Section 333R(1) of the Act requires the Secretary of State2 to notify the FCA of the amount of the Secretary of State’s2 pensions guidance costs.(2) Section 333R(2) requires the FCA to make rules requiring authorised persons to pay amounts, or amounts calculated in a specified way, to the FCA with a view to recovering the amounts notified by the Secretary of State2.(3) Under subsection 3 such amounts may include a component to cover the expenses of the FCA in collecting the
(1) The Handbook provisions relating to the pensions guidance levy are meant to follow closely the provisions relating to the payment of periodic fees payable by an authorised person under FEES 4.(2) As such, the table in FEES 10.5.4 R lists rules in FEES 4 that also apply, in a modified form, to the pensions guidance levy.
Table of rules in FEES 4 that also apply in FEES 10.
FEES 4 incorporated into FEES 10 |
Description |
Modifications |
Method of payment |
none |
|
Calculation of periodic fees and tariff base for a firm's second financial year |
none |
|
Application of FEES |
none |
|
How FEES 4.2.7 R applies to an incoming EEA firm or an incoming Treaty firm |
none |
|
Fee payers ceasing to hold relevant status or reducing the scope of their permission after start of relevant period |
Reference to column (1) of the table in FEES 4.2.11 R is a reference to FEES 10.1.2 G |
|
Groups of firms |
Reference to FEES 4.2.1 R is a reference to FEES 10.2.1 R. |
|
Firms applying to cancel or vary permission before start of period |
Reference toFEES 4.2.1 R is a reference to FEES 10.2.1 R. |
|
Reference to FEES 4.2.6 R and FEES 4.2.7 R is a reference to FEES 10.2.5 R Reference to FEES 4.2.1 R is a reference to FEES 10.2.1 R |
||
Information on which fees are calculated |
none |
(1) A firm's risk management and compliance functions should have appropriate input into setting the remuneration policy for other business areas. The procedures for setting remuneration should allow risk and compliance functions to have significant input into the setting of individual remuneration awards where those functions have concerns about the behaviour of the individuals concerned or the riskiness of the business undertaken.(2) Contravention of (1) may be relied on as
(1) Taking account of the BIPRU remuneration principles proportionality rule, the FCA does not generally consider it necessary for a firm to apply the rules in (2) where, in relation to an individual ("X"), both the following conditions are satisfied: (a) condition 1 requires that X’s variable remuneration is no more than 33% of total remuneration; and(b) condition 2 requires that X’s total remuneration is no more than 500,000.(2) The rules referred to in (1) relate to: (a) guaranteed
(1) A firm should not award, pay or provide guaranteed variable remuneration in hiring new BIPRU Remuneration Code staff (X) unless: (a) it has taken reasonable steps to ensure that the remuneration is not more generous in its amount or terms (including any deferral or retention periods) than the variable remuneration awarded or offered by X’s previous employer; and(b) it is subject to appropriate performance adjustment requirements.(2) Contravention of (1) may be relied on as
(1) A firm must ensure that a substantial portion, at least 50%, of any variable remuneration consists of an appropriate balance of: (a) shares or equivalent ownership interests, subject to the legal structure of the firm concerned, or share-linked instruments or equivalent non-cash instruments for a non-listed firm; and(b) where appropriate, capital instruments which are eligible for inclusion at stage B1 of the calculation in the capital resources table, where applicable, adequately
(1) A firm should reduce unvested deferred variable remuneration when, as a minimum: (a) there is reasonable evidence of employee misbehaviour or material error; or(b) the firm or the relevant business unit suffers a material downturn in its financial performance; or(c) the firm or the relevant business unit suffers a material failure of risk management.(2) For performance adjustment purposes, awards of deferred variable remuneration made in shares or other non-cash instruments
(1) This rule sets out how the calculations under BIPRU 5.6.11 R (Using the supervisory volatility adjustments or the own estimates volatility adjustments approaches to master netting agreements covering repurchase transactions and/or securities or commodities lending or borrowing transactions and/or other capital market driven transactions) must be modified under the IRB approach.(2) Where risk weighted exposure amounts and expected loss amounts are calculated under the IRB approach,
(1) This rule sets out how the calculations under BIPRU 5.6.24 R (Using the internal models approach to master netting agreements covering repurchase transactions and/or securities or commodities lending or borrowing transactions and/or other capital market driven transactions) must be modified under the IRB approach.(2) Where risk weighted exposure amounts and expected loss amounts are calculated under the IRB approach E is the exposure value for each separate exposure under
(1) This rule sets out how the calculations under BIPRU 5.6.29 R (Calculating risk-weighted exposure amounts and expected loss amounts for master netting agreements covering repurchase transactions and/or securities or commodities lending or borrowing transactions and/or other capital market driven transactions) must be modified under the IRB approach.(2) E* must be taken as the exposure value of the exposure to the counterparty arising from the transactions subject to the master
(1) This rule sets out how the calculations under BIPRU 5.4.28 R (Calculating adjusted values under the financial collateral comprehensive method) must be modified under the IRB approach.(2) E as referred to in the provisions listed in (1) is the exposure value as would be determined under the IRB approach if the exposure was not collateralised. For this purpose, where a firm calculates risk weighted exposure amounts under the IRB approach, the exposure value of the items listed
(1) This rule relates to the calculation of risk-weighted exposure amounts and expected loss amounts in the case of unfunded credit protection.(2) BIPRU 5.7.21 R (Tranching) applies for the purpose in (1).(3) The provisions in (4) replace those in BIPRU 5.7.22 R to BIPRU 5.7.25 R (Calculating risk weighted exposure amounts under the standardised approach in the case of unfunded credit protection).(4) For the covered portion of the exposure value E3 (based on the adjusted value
Under section 63F of the Act, in assessing if a person is fit and proper to perform an FCA-specified significant-harm function, a firm must have regard, in particular, to whether that person:(1) has obtained a qualification;(2) has undergone, or is undergoing, training;(3) possesses a level of competence; or(4) has the personal characteristics,required by general rules made by the FCA.
If, after having considered whether a person is fit and proper to perform an FCA-specified significant-harm function, a firm decides not to issue a certificate to that person, it should consider if the circumstances warrant making a notification to the FCA for a breach of the rules in COCON pursuant to SUP 15.3.11R (Breaches of rules and other requirements in or under the Act or the CCA)4.
(1) If:(a) a firm appoints an individual to perform a function which, but for this rule, would be an FCA-specified significant-harm function;(b) the appointment is to provide cover for a certification employee whose absence is reasonably unforeseen; and(c) the appointment is for less than four weeks;then the performance by that individual of such function does not constitute an FCA-specified significant-harm function.(2) This rule does not apply to FCA-specified significant-harm
(1) 3None of the FCA-specified significant-harm functions extend to an individual (“P”) in relation to a firm if:(a) P is based outside the United Kingdom for the firm; and(b) in a 12-month period, P spends no more than 30 days performing what would otherwise be an FCA-specified significant-harm function for that firm within the territorial scope of this section as described in SYSC 5.2.19R.(2) Paragraph (1) only applies to the extent that P is appropriately supervised by: (a)
(1) 3The FCA would expect an individual from overseas using the temporary UK role rule in SYSC 5.2.28AR to be accompanied on a visit to a customer in the United Kingdom.(2) An individual benefiting from the temporary UK role rule in SYSC 5.2.28AR may still be subject to the requirements of TC (Training and competence). However, TC 2.1.9R gives an exemption from certain qualification requirements in TC to an individual benefiting from the temporary UK role rule.
(1) If a function falls into more than one of the FCA-specified significant-harm functions in the table in SYSC 5.2.30R, all of those FCA-specified significant-harm functions apply to it.(2) For example, if a person's job involves both FCA-specified significant-harm function (5) (functions requiring qualifications) and (7) (material risk takers), the emergency appointments rule (SYSC 5.2.27R) does not apply to that job.(3) Another example is the rule about the territorial scope
The following numbers, if used by firms, would comply with the call charges rule:(1) geographic numbers or numbers which are always set at the same rate, which usually begin with the prefix 01, 02 or 03;(2) calls which can be free of charge to call, for example 0800 and 0808 numbers; and(3) standard mobile numbers, which usually begin with the prefix 07, provided that the firm ordinarily uses a mobile number to receive telephone calls.
The following numbers, if used by firms, would not comply with the call charges rule:(1) premium rate numbers that begin with the prefix 09;(2) other revenue sharing numbers in which a portion of the call charge can be used to either provide a service or make a small payment to the firm, such as telephone numbers that begin with the prefix 084 or 0871, 0872 or 0873; and(3) telephone numbers that begin with the prefix 0870 as the cost of making a telephone call on such numbers
1Auditors and actuaries fulfil a vital role in the management and conduct of firms,
AUTs and ACSs. Provisions of the Act,
rules made under the Act and the OEIC Regulations 2000 impose various duties on auditors and actuaries. These duties and the FCA's power to disqualify auditors and actuaries if they breach them assist the FCA in pursuing its statutory objectives. The FCA's power to disqualify auditors in breach of duties imposed by trust
1The FCA also has the power under section 345 to impose a financial penalty and a public censure on an auditor or actuary in respect of a failure to comply with a duty imposed on the auditor or actuary by rules made by the FCA, or a failure to comply with a duty imposed under the Act to communicate information to the FCA. The FCA has the power under section 249 to impose a financial penalty and a public censure on an auditor in respect of a failure to comply with a duty imposed
The extent to which a person can rely on individual guidance given to him will depend on many factors. These could include, for example, the degree of formality of the original query and the guidance given, and whether all relevant information was submitted with the request. Individual guidance is usually given in relation to a set of particular circumstances which exist when the guidance is given. If the circumstances later change, for example, because of a change in the circumstances
Rights conferred on third parties (such as a firm'sclients) cannot be affected by guidance given by the FCA. Guidance on rules, the Act or other legislation represents the FCA view, and does not bind the courts, for example in relation to an action for damages brought by a private person for breach of a rule (section 138D of the Act (Actions for damages)) or in relation to enforceability of a contract if the general prohibition is breached (sections 26 and 27 of the Act (Enforceability
(1) The steps that a relevant authorised person must take to secure that its conduct rules staff understand how the rules in COCON apply to them include the provision of suitable training.(2) Suitable training should always ensure that those who are subject to the rules in COCON have an awareness and broad understanding of all of the rules in COCON, and that they also have a deeper understanding of the practical application of the specific rules which are relevant to their work.(3)
If a firm in relation to an exposure covered by BIPRU 13:(1) has an exposure of a non-standard type; or(2) an exposure that is part of a non-standard arrangement; or(3) has an exposure that, taken together with other exposures (whether or not they are subject to BIPRU 13), gives rise to a non-standard counterparty credit risk; or(4) is subject to the rule in BIPRU 13.2.1 R;it must notify the appropriate regulator as soon as practicable of that fact, the counterparty involved,
A firm must judge the question of what is non-standard for the purposes of BIPRU 13.2.2 R by reference to the standards:(1) prevailing at the time the rule is being applied; and(2) of firms generally who carry on business which might give rise to exposures covered by BIPRU 13 rather than merely by reference to the firm's own business.
The methodologies which have been developed assume instruments with standard characteristics. There are many examples, however, of instruments which, although based on a standard contract, contain structural features which make the rules, as stated, inappropriate. In such circumstances a firm should consult the appropriate regulator.
This section, unless otherwise stated in or in relation to a rule: (1) applies to a firm with respect to consumer credit lending;(2) applies to a firm with respect to credit broking where the firm has or takes on responsibility for providing the disclosures and explanations to customers required by this section;(3) does not apply to an agreement under which the lender provides the customer with credit which exceeds £60,260, unless the agreement is a residential renovation agreement5;(4)
(1) Before making a regulated credit agreement the firm must:(a) provide the customer with an adequate explanation of the matters referred to in (2) in order to place the customer in a position to assess whether the agreement is adapted to the customer's needs and financial situation;(b) advise the customer:(i) to consider the information which is required to be disclosed under section 55 of the CCA; and(ii) where the information is disclosed in person, that the customer is able
(1) 4This rule applies if:(a) a firm is to enter into a regulated credit agreement; and(b) an individual other than the borrower (in this rule referred to as “the guarantor”) is to provide a guarantee or an indemnity (or both) in relation to the regulated credit agreement.(2) The firm must, before making the regulated credit agreement, provide the guarantor with an adequate explanation of the matters in (3) in order to place the guarantor in a position to make an informed decision
(1) 4CONC 4.2.22R does not apply to a lender if a credit broker, a solicitor, a barrister, (in Scotland) an advocate, or a relevant person has complied with that rule in respect of the agreement.(2) Before a lender concludes that CONC 4.2.22R does not apply to it in relation to a regulated credit agreement by virtue of (1), the lender must take reasonable steps to satisfy itself that: (a) an explanation complying with CONC 4.2.22R(2) has been provided to the guarantor; and(b)
4CONC 4.2.23R permits the explanation required by CONC 4.2.22R to be given by a credit broker. It also permits the explanation to be given by a solicitor, a barrister, a Scottish advocate or another “relevant person” (for example, in the course of giving independent legal advice to the guarantor). The explanation may only be given by such a person if the information and documents listed in that rule had been provided to that person.
(1) The winding up of an ICVC may be carried out under this section instead of by the court provided the ICVC is solvent and the steps required under regulation 21 the OEIC Regulations (The Authority's approval for certain changes in respect of a company) are fulfilled. This section lays down the procedures to be followed and the obligations of the ACD and any other directors of the ICVC. (2) The termination of a sub-fund may be carried out4 under this section, instead of by the
This table belongs to COLL 7.3.1 G (4) (Explanation of COLL 7.3)3
3Summary of the main steps in winding up a solvent ICVC or terminating a sub-fund3 under FCArules, assuming FCA approval. Notes: N = Notice to be given to the FCA under regulation 21 of OEIC Regulations E = commencement of winding up or termination W/U = winding up FAP = final accounting period (COLL 7.3.8 R(4)) |
|||
Step number |
Explanation |
When |
COLL rule (unless stated otherwise) |
1 |
Commence preparation of solvency statement |
N-28 days |
7.3.5 (2) |
2 |
Send audited solvency statement to the FCA with copy to depositary |
By N + 21 days |
7.3.5 (4) and (5) |
3 |
Receive the FCA approval |
N + one month |
Regulation 21 of OEIC Regulations |
4 |
Normal business ceases; notify unitholders3 3 |
E |
7.3.6 |
5 |
Realise proceeds, wind up, instruct depositary accordingly |
ASAP after E |
7.3.7 |
6 |
Prepare final account or termination account & have account audited |
On completion of W/U or termination |
7.3.8 |
7 |
Send final account or termination account and auditor's report to the FCA & unitholders |
3 | 7.3.8(6) |
8 |
Request FCA to revoke relevant authorisation order or update its records4 |
On completion of W/U or termination4 |
7.3.7(9) |
(1) Winding up or termination must commence once the conditions referred to in COLL 7.3.4 R (3) are both satisfied or, if later, once the events in COLL 7.3.4 R (4) have occurred. (2) Once winding up or termination has commenced: (a) COLL 6.2 (Dealing), COLL 6.3 (Valuation and pricing) and COLL 5 (Investment and borrowing powers) cease to apply to the ICVC or to the units and scheme property in the case of a sub-fund; (b) the ICVC must cease to issue and cancel3units, except
(1) Except to the extent that the ACD can show that it has complied with COLL 7.3.9 R (Duty to ascertain liabilities), the ACD is personally liable to meet any liability of an ICVC or a sub-fund, of which it is the ACD, wound up or terminated under this section (whether or not the ICVC has been dissolved or, in the case of the sub-fund, termination has been completed) that was not discharged before the completion of the winding up or termination.44(2) Where winding up an ICVC,
(1) If: (a) during the course, or as a result, of the enquiry referred to in COLL 7.3.5 R (1) (Solvency statement), the directors become of the opinion that it will not be possible to provide the confirmation referred to in (2)(a) of that rule; or(b) after winding up or termination has commenced, the ACD becomes of the opinion that the ICVC or the sub-fund4 will be unable to meet all its liabilities within twelve months of the date of the statement provided under (a) of COLL 7.3.5
An EEA UCITS management company that manages a UCITS scheme must comply with the rules of the FCAHandbook which relate to the constitution and functioning of the UCITS scheme (the fund application rules), as follows:(1) the setting up and authorisation of the UCITS scheme (COLL 1 (Introduction), COLL 2 (Authorised fund applications), COLL 3 (Constitution), COLL 6.5 (Appointment and replacement of the authorised fund manager and the depositary), COLL 6.6 (Powers and duties of
An EEA UCITS management company that operates a UCITS scheme is advised that in particular it needs to comply with:(1) COLL 6.6.3 R (Functions of the authorised fund manager) requiring it to fulfil the obligations placed on it by the instrument constituting the fund2 and the prospectus of that scheme;2(2) Dispute resolution: Complaints sourcebook (DISP - see DISP 1 Annex 2 G for a summary of the relevant requirements that apply, which include the complaints handling rules (under
(1) In addition to the requirements of this section, an EEA UCITS management company that provides collective portfolio management services from a branch in the United Kingdom must comply with the following rules that implement the requirements of article 14(1) of the UCITS Directive:(a) COLL 6.6A.2 R (Duties of AFMs of UCITS schemes and EEA UCITS schemes to act in the best interests of the scheme and its Unitholders);(b) COLL 6.6A.4 R (Due diligence requirements of AFMs of UCITS
(1) Firms are reminded that, in the light of the rules and guidance in SYSC, they should have adequate systems and controls in place to ensure that the disclosure they make to a customer about their service reflects the service the customer is actually offered.(2) Firms are also reminded that Principle 7 (Communications with clients) and MCOB 3A.2.1R (Fair, clear2 and not misleading communications) are also relevant to how they describe their services, including in any business
(1) The information about the basis of remuneration required by MCOB 4.4A.1R (2) must include all relevant information, including the following details:(a) any fees which the firm will charge to the customer;(b) when any such fees will be payable and, if applicable, reimbursable; and(c) whether the firm will receive commission from the mortgage lender or another third party and, if applicable, whether any commission will be offset against any fees charged and the arrangements
A firm may demonstrate compliance with MCOB 4.4A.9R(2)8 by, for example, undertaking one or more of the following: building a requirement for oral communication of the relevant information into its training of staff as evidenced by its training and compliance manuals; inserting appropriate prompts into paper-based or automated sales systems; and having procedures in place to monitor compliance by staff with that rule. What is required in each case will depend on all the circu
(1) In many cases, MCOB 4.4A.12 R means that information will be given at the time of the first contact between the firm and the customer. However, there may be circumstances, for example in relation to a loan for a business purpose, where the possibility of the customer entering into, or varying the terms of, a regulated mortgage contract is only identified after preliminary discussions. The relevant disclosure is only required once this possibility is identified.(2) MCOB 4.4A.12
(1) MCOB 4.4A.18 R contains the additional disclosure requirements for firms providing mortgage mediation activities to a consumer by way of a distance contract. MCOB 4.5 and MCOB 4.6 contain further rules and guidance applicable where firms enter into a distance contract in respect of their home finance mediation activities independent of any contractual arrangement with a consumer relating to a particular home finance transaction or transactions.(2) There is guidance on distance
This chapter sets out:(1) guidance on the type of event or change in condition which a firm should consider notifying in accordance with Principle 11; the purpose of this guidance is to set out examples and not to give comprehensive advice to firms on what they should notify in order to be in compliance with Principle 11;(2) rules on events and changes in condition that a firm must notify; these are the types of event that the FCA2 must be informed about, usually as soon as possible,
3SUP 15.11 (Notification of COCON breaches and disciplinary action) provides rules and guidance on notifications to the FCA by a relevant authorised person where the relevant authorised person4 takes disciplinary action in relation to any conduct rules staff and the reason for taking that action is a reason specified in rules made by the FCA. This is a requirement imposed4 under section4 64C of the Act.
1The guidance on initial disclosure requirements in MCOB 4.4A3 may be relevant; in this context, that guidance should be read using home purchase plan terminology instead of the equivalent regulated mortgage contract terminology, where appropriate3.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
3For the purposes of MCOB 4.10.5A R:(1) a home purchase plan will not be suitable for a customer unless the home purchase plan is appropriate to the needs and circumstances of the customer;(2) a firm must base its determination of whether a home purchase plan is appropriate to a customer's needs and circumstances on the facts disclosed by the customer and other relevant facts about the customer of which the firm is or should reasonably be aware;(3) no advice must be given to a
3Firms may wish to consider the following provisions:3(1) the rule at MCOB 4.7A.6 R on the customer's needs and circumstances, as if it were guidance and to the extent applicable to home purchase plans; and(2) the guidance at MCOB 4.7A.1G (2), MCOB 4.7A.21 G and MCOB 4.7A.23 G (Other considerations when advising);in each case using home purchase plan terminology instead of the equivalent regulated mortgage contract terminology, where appropriate.
(1) 3(a) MCOB 7.1 to MCOB 7.3, MCOB 7.5 and MCOB 7.6 (as modified by this section) apply to a firm where the home finance transaction is a lifetime mortgage.3(b) MCOB 7.1 to MCOB 7.3 (as modified by this section) apply to a firm where the home finance transaction is a home reversion plan, except that those provisions that by their nature are only relevant to regulated mortgage contracts do not apply to home reversion plans (see MCOB 9.1.2A G).3(2) The table in MCOB 9.6.2 R shows
Table of modified cross-references to other rules:
This table belongs to MCOB 9.6.1R.
Subject |
Rule or guidance |
Reference in rule or guidance |
To be read as a reference to: |
Application |
MCOB 7.1.4R |
MCOB 7.6.7R - MCOB 7.6.33G as modified by MCOB 9.8.5R - 9.8.9R |
|
Application |
MCOB 7.1.5R |
||
Information in more than one document |
MCOB 7.3.3R |
MCOB 7 |
|
Frequency of statements |
MCOB 7.5.6G |
MCOB 7.5.3R(2) |
MCOB 9.8.1R(2) |
Annual statement - additional content |
MCOB 7.5.9G |
MCOB 7.5.3R(2)(b) |
MCOB 9.8.1R |
Further advances |
MCOB 7.6.7R |
MCOB 5 |
MCOB 9.4 |
Further advances |
MCOB 7.6.10G |
MCOB 7.6.9R(10 |
MCOB 9.8.5R(1) |
Further advances |
MCOB 7.6.10G |
MCOB 5.6.34 |
MCOB 9.4.114R |
Further advances |
MCOB 7.6.11G |
MCOB 7.6.9R(3) and (4) |
MCOB 9.8.5R(3) |
Further advances |
MCOB 7.6.11G(2) |
MCOB 5.6.40R |
MCOB 9.4.37R |
Further advances |
MCOB 7.6.12G |
MCOB 7.6.9R(3) |
MCOB 9.8.5R(3) |
Further advances |
MCOB 7.6.13R |
MCOB 5.6.25R(2)(a) |
MCOB 9.4.24R(4)(a) |
Further advances |
MCOB 7.6.13R |
MCOB 7.6.9R(3)(b) |
MCOB 9.8.5R(3)(b) |
Further advances |
MCOB 7.6.14R |
MCOB 5 |
MCOB 9 |
Rate switches |
MCOB 7.6.20R |
MCOB 5 |
MCOB 9 |
Rate switches |
MCOB 7.6.20R |
MCOB 5 |
MCOB 9 |
Addition or removal of party to contract |
MCOB 7.6.22R |
MCOB 5 |
MCOB 9 |
Addition or removal of party to contract |
MCOB 7.6.25R |
MCOB 5 |
MCOB 9 |
Changes to payments |
MCOB 7.6.29R |
MCOB 7.6.28R |
|
Changes to payments |
MCOB 7.6.30R |
MCOB 7.6.28R |
MCOB 9.8.9R or MCOB 9.8.10R |
Use of illustrations |
MCOB 7.6.31R |
MCOB 7.6.28R |
|
Use of illustrations |
MCOB 7.6.31R |
MCOB 5 |
MCOB 9 |
Use of illustrations |
MCOB 7.6.32R |
MCOB 7.6.28R |
|
Use of illustrations |
MCOB 7.6.32R |
||
Simultaneous requests |
MCOB 7.6.33G |
||
Simultaneous requests |
MCOB 7.6.33G |
MCOB 5 |
MCOB 9 |
Table of rules in MCOB 7 replaced by rules in this chapter:
This table belongs to MCOB 9.6.1R.
Subject |
Rule or guidance |
Rule replaced by: |
Information at start of contract |
MCOB 7.4 |
MCOB 9.7 |
Content of statement |
MCOB 5.3R |
MCOB 9.8.1R |
Frequency of statements |
MCOB 7.5.5R |
MCOB 9.8.2R |
Event-driven information |
MCOB 7.6.1R |
MCOB 9.8.3R |
Release of additional borrowing |
MCOB 7.6.6G |
MCOB 9.8.4G |
Further advances |
MCOB 7.6.9R |
MCOB 9.8.5G |
Further advances |
MCOB 7.6.16R |
MCOB 9.8.7R |
Addition or removal of party to contract |
MCOB 7.6.27R |
MCOB 9.8.8R |
Changes to payments |
MCOB 7.6.28R |
(1) 3This rule applies if the lender, or the prospective lender, under a P2P agreement is, or would be, carrying on by way of business the regulated activity of entering into a regulated credit agreement as lender by entering into the agreement.(2) Any fee to be paid by the borrower to the operator of an electronic system in relation to lending must be agreed between the borrower and the operator, and that agreement must be recorded in writing or other durable medium before the
(1) Before a P2P agreement is made, the firm must:(a) provide the prospective borrower with an adequate explanation of the matters referred to in (2) in order to place the borrower in a position to assess whether the agreement is adapted to the borrower's needs and financial situation;(b) where the P2P agreement is not a non-commercial agreement, advise the prospective borrower:(i) to consider the information which is required to be disclosed under section 55(1) of the CCA; and(ii)
Where CONC 4.3.4 R applies to a firm, the firm must comply with the rules, and observe the guidance, in CONC 4.2 to the same extent as if it were the lender under an agreement to which those rules apply.[Note: Until the end of 30 September 2014, transitional provisions apply to CONC 4.3.5 R: see CONC TP 4.1]
(1) 1This rule applies if:(a) a firm with permission to carry on the activity of operating an electronic system in relation to lending is to facilitate the entry into a P2P agreement; (b) the prospective borrower is an individual; and(c) an individual other than the borrower (in this rule referred to as “the guarantor”) is to provide a guarantee or an indemnity (or both) in relation to the P2P agreement.(2) The firm must, before the P2P agreement is made, provide the guarantor
Section 137B(1) of the Act (Miscellaneous ancillary matters) provides that rules may make provision which results in client money being held by a firm on trust (England and Wales and Northern
Ireland) or as agent (Scotland only). CASS 5.3.2 R creates a fiduciary relationship
between the firm and its client under which client
money is in the legal ownership of the firm but
remains in the beneficial ownership of the client.
In the event of failure of the firm,
costs relating to
A firm (other
than a firm acting in accordance
with CASS
5.4) receives and holds client money as
trustee (or in Scotland as agent) on the following terms:(1) for
the purposes of and on the terms of CASS
5.3, CASS
5.5 and
the client money (insurance) distribution
rules;(2) subject
to (4),1 for the clients (other than clients which
are insurance undertakings when
acting as such)1 for whom that money is
held, according to their respective interests in it;(3) after
all valid claims
(1) A
firm which holds client money can discharge its obligation
to ensure adequate protection for its clients in
respect of such money by complying
with CASS
5.3 which provides for such money to
be held by the firm on the terms
of a trust imposed by the rules.(2) The
trust imposed by CASS
5.3 is limited to a trust in respect of client money which a firm receives
and holds. The consequential and supplementary requirements in CASS
5.5 are
designed to secure the proper segregation