FCA Handbook - MCOB 4A.1 Additional disclosure by MCD mortgage credit intermediaries

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MCOB 4A.1 Additional disclosure by MCD mortgage credit intermediaries

An MCD mortgage arranger (unless it is also acting as an MCD mortgage lender and carrying out a direct sale of the proposed regulated mortgage contract) must, in good time before carrying out any MCD mortgage credit intermediation activity, provide the consumer with at least the following information in a durable medium:

(1)
the identity and the geographical address of the MCD mortgage arranger;
(2)
the Financial Services Register or other registers in which the MCD mortgage arranger has been included, the registration numbers, where applicable, and the means for verifying such registrations;
(3)
whether the MCD mortgage arranger is an MCD mortgage adviser; and
(4)
the procedures allowing consumers or other interested parties to complain to the MCD mortgage arranger, whether complaints may subsequently be referred to the Financial Ombudsman Service and, if so, the methods of having access to it.

[Note: article 15(1)(a), (b), (d) and (f) of the MCD]

In MCOB 4A.1.1R (4):

(1)
other interested parties includes all parties to the relevant MCD regulated mortgage contract and parties that have an interest in the MCD regulated mortgage contract, such as a guarantor of the obligations under the MCD regulated mortgage contract;
(2)
where the MCD mortgage arranger provides the information in the general terms and conditions of the sales or service contracts, before carrying out any MCD mortgage credit intermediation activity, it need not provide it again.

The information listed in MCOB 4A.1.1 R need not all be given at the same time or in the same disclosure.

In general, where other requirements for disclosure in a durable medium also apply, the MCD mortgage arranger may, if it would also satisfy those requirements, combine those other disclosures with the information required by MCOB 4A.1.1 R, so long as the combined disclosure is provided to the consumer in good time before the MCD mortgage arranger carries out any MCD mortgage credit intermediation activity.

An MCD mortgage credit intermediary who is not a tied MCD mortgage credit intermediary (unless it is also acting as an MCD mortgage lender and carrying out a direct sale of the proposed regulated mortgage contract), but who receives commission from one or more MCD mortgage lenders must, at the consumer's request, provide information on the variation in levels of commission payable by the MCD mortgage lenders providing the MCD regulated mortgage contract being offered to the consumer. The consumer must be informed that they have the right to request such information.

[Note: article 15(2) of the MCD]

An MCD mortgage credit intermediary (unless it is also acting as an MCD mortgage lender and carrying out a direct sale of the proposed regulated mortgage contract) must inform the MCD mortgage lender of any fee payable by the consumer to the MCD mortgage credit intermediary for its services, for the purpose of calculating the APRC.

[Note: article 15(4) of the MCD]

An MCD mortgage credit intermediary (unless it is also acting as an MCD mortgage lender and carrying out a direct sale of the proposed regulated mortgage contract) must require their appointed representatives to disclose to the consumer the capacity in which the appointed representative is acting and the MCD mortgage credit intermediary that the appointed representative is representing when contacting or before dealing with any consumer.

[Note: article 15(5) of the MCD]