Related provisions for MCOB 4.1.3

MCOB 3A.1.1R21/03/2016

This chapter applies to a firm:(1) communicating information to a customer in relation to a home finance transaction; or(2) communicating or approving a financial promotion of qualifying credit, a home reversion plan, a home purchase plan or a regulated sale and rent back agreement.

MCOB 7.6.21AR23/03/2018

9Where a firm proposes to vary the term of a regulated mortgage contract so that it becomes a retirement interest-only mortgage: (1) MCOB 7.6.18R to MCOB 7.6.21G apply as though references to a rate switch were references to such a contract variation; and(2) MCOB 5.4 applies as though a reference to entering into a home finance transaction included such a contract variation.

COBS 2.3.15G04/11/2016

1This table belongs to COBS 2.3.14 G.

11
	Gifts, Hospitality and Promotional Competition Prizes
1	A retail investment product provider5 giving and a firm receiving gifts, hospitality and promotional competition prizes of a reasonable value. 5
	Promotion
2	A retail investment product provider5 assisting another firm to promote its retail investment products 5 so that the quality of its service to clients is enhanced. Such assistance should not be of a kind or value that is likely to impair the recipient firm's ability to pay due regard to the interests of its clients, and to give advice on, and recommend, retail investment products 5 available from the recipient firm's whole range or ranges. 5 5 5
	Joint marketing exercises
3	A retail investment product provider5 providing generic product literature (that is, letter heading, leaflets, forms and envelopes) that is suitable for use and distribution by or on behalf of another firm if: 5
	(a)	the literature enhances the quality of the service to the client and is not primarily of promotional benefit to the retail investment product provider;5 and 5
	(b)	the total costs (for example, packaging, posting, mailing lists) of distributing such literature to its client are borne by the recipient firm.
4	A retail investment product provider5 supplying another firm with 'freepost' envelopes, for forwarding such items as completed applications, medical reports or copy client agreements. 5
5	A retail investment product provider5 supplying product specific literature (for example, key features documents, minimum information) to another firm if: 5
	(a)	the literature does not contain the name of any other firm; or
	(b)	if the name of the recipient firm is included, the literature enhances the quality of the service to the client and is not primarily of promotional benefit to the recipient firm.
6	A retail investment product provider5 supplying draft articles, news items and financial promotions for publication in another firm's magazine, only if in each case any costs paid by the product provider for placing the articles and financial promotions are not more than market rate, and exclude distribution costs. 5
	Seminars and conferences
7	A retail investment product provider5 taking part in a seminar organised by another firm or a third party and paying toward the cost of the seminar, if: 5
	(a)	its participation is for a genuine business purpose; and
	(b)	the contribution is reasonable and proportionate to its participation and by reference to the time and sessions at the seminar when its staff play an active role.
	Technical services and information technology
8	A retail investment product provider5 supplying a 'freephone' link to which it is connected. 5
9	A retail investment product provider5 supplying another firm with any of the following: 5
	(a)	quotations and projections relating to its retail investment products 5 and, in relation to specific investment transactions (or for the purpose of any scheme for review of past business), advice on the completion of forms or other documents; 5
	(b)	access to data processing facilities, or access to data, that is related to the retail investment product provider’s5 business; 5
	(c)	access to third party electronic dealing or quotation systems that are related to the retail investment product provider's5 business; and 5
	(d)	software that gives information about the retail investment product provider's retail investment products 5 or which is appropriate to its business (for example, for use in a scheme for review of past business or for producing projections or technical product information). 5
10	A retail investment product provider5 paying cash amounts or giving other assistance to a firm not in the same immediate group for the development of software or other computer facilities necessary to operate software supplied by the retail investment product provider,5 but only to the extent that by doing so it will generate equivalent cost savings to itself or clients. 5 5
11	A retail investment product provider5 supplying another firm with information about sources of mortgage finance. 5
12	A retail investment product provider5 supplying another firm with generic technical information in writing, not necessarily related to the product provider's business, when this information states clearly and prominently that it is produced by the product provider or (if different) supplying firm. 5
	Training
13	A retail investment product provider5 providing another firm with training facilities of any kind (for example, lectures, venue, written material and software). 5
	Travel and accommodation expenses
14	A retail investment product provider5 reimbursing another firm's reasonable travel and accommodation expenses when the other firm: 5
	(a)	participates in market research conducted by or for the retail investment product provider;5 5
	(b)	attends an annual national event of a United Kingdom trade association, hosted or co-hosted by the retail investment product provider;5 5
	(c)	participates in the retail investment product provider’s5 training facilities (see 13); 5
	(d)	visits the retail investment product provider’s5 United Kingdom office in order to: 5
		(i)	receive information about the retail investment product provider's5 administrative systems; or 5
		(ii)	attend a meeting with the retail investment product provider5 and an existing or prospective client of the receiving firm. 5

MCOB 4.8A.1G26/04/2014

1This section sets out the conditions which must be satisfied for a firm to enter into or vary a regulated mortgage contract with a customer, or arrange such a transaction for a customer, without giving advice, or where the advice given by the firm has been rejected. As explained in MCOB 4.7A.1 G, it does not prohibit the giving of pre-contract or preliminary information which does not amount to advice to the particular customer. If a firm intends (where permitted under this

PERG 4.13.1G21/03/2016

Certain named persons are exempted by the Exemption Order from the need to obtain authorisation. The following bodies have exemptions (which are explained in more detail in this section)3 in relation to carrying on by them of the regulated mortgage activities:33(1) [deleted]22(2) registered social landlords in England and Wales within the meaning of Part I of the Housing Act 1996 (paragraph 48(2)1(a) of the Schedule to the Exemption Order) but not their subsidiaries;(3) registered

MCOB 4A.2.3G21/03/2016

The explanations given to a consumer for the purposes of complying with MCOB 4A.2.1 R do not amount to advice to that consumer. Firms may wish to refer to PERG (particularly PERG 4.6) for guidance on the regulatory perimeter in relation to advising on a home finance transaction.

PERG 5.11.5G01/01/2007

Insurance undertakings are referred to 1MIPRU 51 (Insurance undertakings and mortgage lenders using insurance or mortgage mediation services) as regards their obligations relating to the use of intermediaries generally.

MCOB 3A.2.3G21/03/2016

Where:(1) there are two or more customers or prospective customers in relation to the same home finance transaction;(2) a rule in MCOB requires the provision of information to such customers; and(3) the customers have different addressesa firm should send the information to each address. If the customers share the same address, it will be sufficient to send a single copy of the information addressed to each of the customers.

TC App 2.1.1R03/01/2018

	1 UK domestic firm	Incoming EEA firm	Overseas firm (other than an incoming EEA firm)
MiFID business and equivalent third country business	TC applies in respect of employees who carry on activities from an establishment maintained by the firm (or its appointed representative) in the United Kingdom and if4an activity is carried on from an establishment maintained by the firm (or its appointed representative or, where applicable, its tied agent) in, and within the territory of, another EEA State, TC applies although matters which would otherwise be covered by SYSC 5.1.5ABR are matters reserved for the Host State regulator 4	TC does not apply	TC applies in respect of employees who carry on activities from an establishment maintained by the firm (or its appointed representative) in the United Kingdom
Insurance mediation activities	TC applies in respect of employees who carry on activities from an establishment maintained by the firm (or its appointed representative) in the United Kingdom and TC also applies in respect of employees who engage in or oversee activities from a branch established in another EEA state	TC does not apply	TC does not apply
Mortgage activities and reversion activities numbers 20, 20A, 21, 21A, 21B, 22 and 23 in TC App 1.1.1R; and MCD credit agreement activities numbers 23A to 23E in TC App 1.1.1R3	TC applies if the customer is resident in the United Kingdom at the time the activity3 is carried on and TC also applies if the customer is resident in another EEA State (at the time that the activity is carried on) but only if the activity is carried on from an establishment maintained by the firm or its appointed representative in the United Kingdom	Same as for UK domestic firm except that: (1) if the firm carries on the activity from an establishment maintained by the firm or its appointed representative in the United Kingdom and the customer is resident in another EEA State when the activity is carried on, TC does not apply; and (2) if the firm carries on the activity from an establishment maintained by the firm in another EEA State (and the customer is resident in the United Kingdom when the activity is carried on), the following provisions of TC apply: TC 2.1.5AR; TC 2.1.5BR(2), (3), (5) and (6); TC 2.1.5CR; TC 2.1.5DG; TC 2.1.5ER; and TC 2.1.5FG. [Note: article 9(3) of the MCD]3	Same as for UK domestic firm
Any other activity in Appendix 1	TC applies in respect of employees who carry on these activities from an establishment maintained by the firm (or its appointed representative) in the United Kingdom and TC also applies in respect of employees who carry on activities with or for a client in the United Kingdom	TC applies in respect of its employees who carry on activities from an establishment maintained by the firm (or its appointed representative) in the United Kingdom 3 2	TC applies in respect of its employees who carry on activities from an establishment maintained by the firm (or its appointed representative) in the United Kingdom

MIPRU 4.2BA.1R26/04/2015

1This section applies to a firm carrying on any home financing connected to regulated mortgage contracts or home financing and home financing administration connected to regulated mortgage contracts (see MIPRU 4.2.23 R).

PERG 2.10.15G06/04/2007

In addition, there are restrictions on carrying on (or agreeing to carry on) certain other regulated activities. These relate to managing investments, advising on investments, advising on a home finance transaction,2advising on syndicate participation at Lloyd's, entering into a home finance transaction or administering a home finance transaction.222

SUP 12.6.8G21/03/2016

(1) Some of the controlled functions, as set out in SUP 10A.4.1 R22, apply to an appointed representative of a firm, other than an introducer appointed representative, just as they apply to a firm (see SUP 10A.1.15 R22). These are the governing functions and the customer function5. In the case of an appointed representative that also has a limited permission, an FCA required function may apply to it.9 As explained in SUP 10A.1.16 R22 and SUP 10A.3.2 G22 respectively:22222522522(a)

MCOB 9.1.4R06/04/2007

This table belongs to MCOB 9.1.3 R

Section of MCOB 9	Applies in relation to an equity release transaction as set out in the following rules:2 2
MCOB 9.1, MCOB 9.2	all of the rules below in this column2
MCOB 9.3, MCOB 9.4	MCOB 5.1.3 R
MCOB 9.5	MCOB 6.1.3 R
2MCOB 9.62	MCOB 7.1.3 R

CREDS 10.1.3G29/06/2018

Module	Relevance to Credit Unions
The Principles for Businesses (PRIN)	The Principles for Businesses (PRIN) set out 3high-level requirements 3imposed by the FCA 3. They provide a general statement of regulatory requirements. The Principles apply to all12 credit unions. In applying the Principles to credit unions, the FCA 3 will be mindful of proportionality. In practice, the implications are likely to vary according to the size and complexity 3of the credit union. 12 12 12 12 12
Senior Management Arrangements, Systems and Controls (SYSC)	SYSC 1,3SYSC 4 to 10 and SYSC 213 apply to all credit unions in respect of the carrying on of their regulated activities and unregulated activities in a prudential context. SYSC 4.5 (Management responsibilities maps for relevant authorised persons), SYSC 4.7 (Senior management responsibilities for relevant authorised persons: allocation of responsibilities), SYSC 4.9 (Handover procedures and material), SYSC 5.2 (Certification regime) and SYSC 18 apply3 to all credit unions in respect of both their regulated activities and their unregulated activities3.
3Code of Conduct (COCON)	This contains rules and guidance that are directly applicable to a credit union’s SMF managers, certification employees and (from 2017) other conduct rules staff. There is also guidance for credit unions on giving their staff training about COCON.
Threshold Conditions (COND)	In order to become authorised under the Act all firms must meet the threshold conditions. The threshold conditions must be met on a continuing basis by credit unions. Failure to meet one of the conditions is sufficient grounds for the exercise by the FCA 3 of its powers. 12 12 12
3	3 12 3 12
The Fit and Proper test for Approved Persons (FIT)	The purpose of FIT is to set out and describe the criteria that a firm should3 consider when assessing the fitness and propriety of a person (1)3 in respect of whom an application is being made for approval to undertake a controlled function under the approved persons regime, (2)3 who has already been approved, (3) who is a certification employee or (4) whom a firm is considering appointing to be a certification employee 3. It also sets out and describes criteria that the FCA will consider when assessing the fitness and propriety of a candidate for a controlled function position and that it may consider when assessing the continuing fitness and propriety of approved persons.3 12 3 12
General Provisions (GEN)	GEN contains rules and guidance on general matters, including interpreting the Handbook, statutory status disclosure, the FCA's 3 logo and insurance against financial penalties. 12
Fees manual (FEES)	This manual sets out the fees applying to credit unions.
3Prudential sourcebook for Mortgage and Home Finance Firms, and Insurance Intermediaries (MIPRU)	MIPRU applies to any credit union carrying out insurance mediation activity or home finance mediation activity, or using these services. In particular, it sets out requirements for allocation of responsibility for the credit union’s insurance mediation activity (MIPRU 2), for the use of home finance intermediaries (MIPRU 5) and for professional indemnity insurance (MIPRU 3).
Conduct of Business sourcebook (COBS)	A credit union which acts as a CTF provider or provides a cash-deposit ISA will need to be aware of the relevant requirements in COBS. COBS 4.6 (Past, simulated past and future performance), COBS 4.7.1 R (Direct offer financial promotions), COBS 4.10 (Systems and controls and approving and communicating financial promotions), COBS 13 (Preparing product information) and COBS 14 (Providing product information to clients) apply with respect to accepting deposits as set out in those provisions, COBS 4.1 and BCOBS. A credit union that communicates with clients, including in a financial promotion, in relation to the promotion of deferred shares and credit union subordinated debt will need to be aware of the requirements of COBS 4.2 (Fair, clear and not misleading communications) and COBS 4.5 (Communicating with retail clients).4
3Insurance: Conduct of Business sourcebook (ICOBS)	ICOBS applies to any credit union carrying on non-investment insurance activities, such as arranging or advising on general insurance contracts to be taken out by members. But ICOBS does not apply to a credit union taking out an insurance policy for itself, such as a policy against default by members on their loans where the credit union is the beneficiary of the policy, since in this circumstance the credit union would not be acting as an insurance intermediary, but would itself be the customer. Credit unions are reminded that they are subject to the requirements of the appropriate legislation, including the Credit Unions Act 1979, relating to activities a credit union may carry on.
3Mortgages and Home Finance: Conduct of Business sourcebook (MCOB)	MCOB applies to any credit union that engages in any home finance activity. MCOB rules cover advising and selling standards, responsible lending (including affordability assessment), charges, and the fair treatment of customers in payment difficulties.
Banking: Conduct of Business sourcebook (BCOBS)	BCOBS sets out rules and guidance for credit unions on how they should conduct their business with their customers. In particular there are rules and guidance relating to communications with banking customers 3and financial promotions (BCOBS 2), distance communications (BCOBS 3), information to be communicated to banking customers 3(BCOBS 4), post sale requirements (BCOBS 5), and cancellation (BCOBS 6). 3The rules in BCOBS 3.1 that relate to distance contracts may apply 3to a credit union. This is because the Distance Marketing Directive 3applies where there is "an organised distance sales or service-provision scheme run by the supplier" (Article 2(a)), i.e. if the credit union routinely sells any of its services by post, telephone, fax or the internet3.
Supervision manual (SUP)	The following provisions of SUP are relevant to credit unions: 13SUP 1A13 (The FCA’s 3 approach to supervision), SUP 2 (Information gathering by the FCA or PRA 3 on its own initiative), SUP 3.1 to SUP 3.8 (Auditors), SUP 5 (Skilled persons), SUP 6 (Applications to vary or cancel Part 4A12permission), SUP 7 (Individual requirements), SUP 8 (Waiver and modification of rules), SUP 9 (Individual guidance), 13SUP 10C (FCA senior management regime for approved persons in relevant authorised persons),3SUP 11 (Controllers and Close links), SUP 15 (Notifications to the FCA or PRA 3) and SUP 16 (Reporting Requirements). Credit unions are reminded that they are subject to the requirements of the Act and SUP 11 on close links, and are bound to notify the FCA 3 of changes. It may be unlikely, in practice, that credit unions will develop such relationships. It is possible, however, that a person may acquire close links with a 3 credit union 3 within the meaning of the Act by reason of holding the prescribed proportion of deferred shares in the credit union. In relation to SUP 16, credit unions are exempted from the requirement to submit annual reports of 3 close links. 12 12 12 12 12 13 12 12 12 12
3Consumer Credit sourcebook (CONC)	CONC contains rules that apply to firms carrying on credit-related regulated activities. PERG 2.7.19IG provides guidance on relevant exemptions. Most credit union lending is therefore outside the scope of CONC. However, subject to the constraints in the Credit Unions Act 1979 or the Credit Unions (Northern Ireland) Order 1985 (as relevant), credit unions may undertake credit-related regulated activities to which CONC does apply if the activity is carried out by way of business. This could include lending under a borrower-lender-supplier agreement, or debt adjusting or debt counselling where the credit union is not the lender. A credit union carrying on such activities should consider whether it requires permission to do so. Further information can be found on the FCA’s website.
Decision, Procedure and Penalties manual (DEPP)	DEPP is relevant to credit unions because it sets out: (1) the FCA's 12 decision-making procedure for giving statutory notices. These are warning notices, decision notices and supervisory notices (DEPP 1.2 to DEPP 5); and (2) the FCA's 12 policy with respect to the imposition and amount of penalties under the Act (see DEPP 6). 12 12
Dispute Resolution: Complaints (DISP)	DISP sets out rules and guidance in relation to treating complainants fairly and the Financial Ombudsman Service.
Compensation (COMP)	COMP sets out rules relating to the scheme for compensating consumers when authorised firms are unable, or likely to be unable, to satisfy claims against them.12
6General guidance on Benchmark Administration, Contribution and Use (BENCH)	BENCH provides guidance about which parts of the Handbook are relevant to a firm when carrying out benchmark activities and when using a benchmark. It also provides guidance about the benchmarks regulation.
The Enforcement Guide (EG)	The Enforcement Guide (EG) describes the FCA's 12 approach to exercising the main enforcement powers given to it by the Act and by other legislation.2 12
Financial crime: a guide for firms (FC)	FC provides guidance on steps that a firm can take to reduce the risk that it might be used to further financial crime.

Related provisions for MCOB 4.1.3

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This table belongs to MCOB 9.1.3 R