Home FCA Handbook MCOB MCOB 6 MCOB 6.7 Business loans and loans to high net worth mortgage customers: tailored provisions
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MCOB 6.7 Business loans and loans to high net worth mortgage customers: tailored provisions

26/04/2014R
  1. (1)

    Where the regulated mortgage contract is for a business purpose or a high net worth mortgage customer, a firm may choose to provide a customer with a business offer document or high net worth offer document (as applicable) instead of the offer document referred to in MCOB 6.4.1 R.

  2. (2)

    If a firm provides a customer with a business offer document or high net worth offer document in accordance with (1), it must ensure that:

    1. (a)

      an updated business illustration or high net worth illustration (as applicable), as required by MCOB 5.7 (Business loans and loans to high net worth mortgage customers: tailored provisions), forms part of the business offer document or high net worth offer document; and

    2. (b)

      subject to the tailoring required by MCOB 5.7 (Business loans and loans to high net worth mortgage customers: tailored provisions), the business offer document or high net worth offer document complies with MCOB 6.4 (Mortgages: content of the offer document).

26/04/2014G

Firms are reminded that in accordance with MCOB 1.2.3 R, they should comply in full with MCOB, but in doing so may opt to take account of all tailored provisions in MCOB that relate to business loans or loans to high net worth mortgage customers (as applicable). Therefore, a firm may only follow the tailored provisions in MCOB 6.7 in relation to one of these sectors if it also follows all other tailored provisions in MCOB that relate to that sector. In either case, the rest of MCOB applies in full.

26/04/2014G

MCOB 6.7.1 R (2) means, for example, that the required text in MCOB 6.4.4 R (7) should be replaced by text that satisfies the requirements for business illustrations or high net worth illustrations in MCOB 5.7.5 R

26/04/2014G

A firm may supplement the first paragraph of text prescribed in MCOB 6.4.4 R (5)(a) to clarify that, while the regulated mortgage contract is not binding until the relevant mortgage document has been signed and funds have been released, the business offer document or high net worth offer document may form part of a wider set of negotiated facilities and that the customer is separately bound by these.