FCA Handbook - MCOB 4.1 Application

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MCOB 4.1 Application

Who?

This chapter applies to a firm in a category listed in column (1) of the table in MCOB 4.1.2 R in accordance with column (2) of that table.

This table belongs to MCOB 4.1.1 R

(1) Category of firm	(2) Applicable section
mortgage lender	except in relation to lifetime mortgages: MCOB 4.1 to MCOB 4.4A, 4.6A, MCOB 4.8A in accordance with MCOB 4.1.2A R and MCOB 4.9
mortgage adviser	except in relation to lifetime mortgages: whole chapter except MCOB 4.10
mortgage arranger	except in relation to lifetime mortgages: whole chapter except MCOB 4.7A and MCOB 4.10
home purchase provider	MCOB 4.1, MCOB 4.2 and MCOB 4.10 (except MCOB 4.10.5 G to MCOB 4.10.7 G). MCOB 4.4A and MCOB 4.8A in accordance with MCOB 4.1.2B R and MCOB 4.10.
home purchase adviser	MCOB 4.1, MCOB 4.2, MCOB 4.5, MCOB 4.6 and MCOB 4.10. MCOB 4.4A, MCOB 4.7A and MCOB 4.8A in accordance with MCOB 4.10
home purchase arranger	As for a home purchase adviser except MCOB 4.10.5A R to MCOB 4.10.9A R, MCOB 4.10.13 R and MCOB 4.7A do not apply
equity release provider equity release adviser equity release arranger	see MCOB 8.3 for the application of this chapter
SRB adviser	MCOB 4.1, MCOB 4.2, MCOB 4.5, MCOB 4.6 and MCOB 4.11
SRB arranger	MCOB 4.1, MCOB 4.2, MCOB 4.5, MCOB 4.6 and MCOB 4.11
SRB agreement provider	MCOB 4.1, MCOB 4.2 and MCOB 4.11

MCOB 4.8A only applies to a mortgage lender in relation to entering into a regulated mortgage contract where there is no firm which is arranging (bringing about) the regulated mortgage contract to which MCOB 4.8A applies.

MCOB 4.8A only applies to a home purchase provider (as provided in MCOB 4.10.9B R) in relation to entering into a home purchase plan where there is no firm which is arranging (bringing about) the home purchase plan to which MCOB 4.8A applies (as provided in MCOB 4.10.9B R).

MCOB 4.1.2A R and MCOB 4.1.2B R mean that the provisions in MCOB 4.8A on execution-only sales, including the prohibition on entering into them in the circumstances specified in that section, only apply to sales by mortgage lenders or home purchase providers where there is no intermediary firm to which that section applies.

MCOB 4.1.2A R and MCOB 4.1.2B R mean that the situations where MCOB 4.8A applies to a mortgage lender or home purchase provider include where a mortgage intermediary or home purchase intermediary has been involved in arranging a regulated mortgage contract or home purchaser plan but is no longer involved in the transaction.

To the extent that a rule in this chapter does not already apply to Gibraltar-based firms as a result of GEN 2.3.1R, it applies to them so far as the rule would have applied were it in effect before IP completion day.

What?

This chapter applies if a firm in the course of carrying on a home finance activity: enters into, advises on or arranges a home finance transaction or a variation of the terms of a home finance transaction.

(1)
MCOB 4.4A (Initial disclosure requirements) applies only in relation to varying the terms of a regulated mortgage contract entered into by the customer in any of the following ways:
1. (a)
  adding or removing a party;
2. (b)
  taking out a further advance; or
3. (c)
  switching all or part of the regulated mortgage contract from one interest rate to another.
(2)
Otherwise, this chapter, MCOB 4, applies in relation to any form of variation of a regulated mortgage contract.

In relation to an equity release transaction, this chapter is modified by MCOB 8 (Equity release: advising and selling standards).

The FCA would not view the removal of a party to the regulated mortgage contract following the death of that party (and where no other variation is proposed) as a variation for the purposes of MCOB 4.1.4 R(1).