MCOB 9.9 Disclosure after sale: home reversion plans

1. (1)

   In relation to an instalment reversion plan, a firm must provide the customer with a statement at least once a year (or, in relation to the first statement, within the first 13 months of the plan term):

   1. (a)

      covering the instalment reversion plan and any tied product purchased through the firm; and

   2. (b)

      giving information of any other product purchased through the firm where the payments for those products are combined with amounts released under the instalment reversion plan.

2. (2)

   A firm need not provide a statement if it has provided an offer document to the customer in respect of the instalment reversion plan within the previous year.

Where a tied product is operated separately from the instalment reversion plan, for example where the premiums on a tied insurance product are not combined with amounts released under the instalment reversion plan, the statement relating to the tied product may be provided in a separate communication.

The statement must contain:

1. (1)

   details of the following transactions during the period since the last statement (or, where it is the first statement, since the customer entered into the instalment reversion plan):

   1. (a)

      the date and amount of each payment made by the reversion provider; and

   2. (b)

      any amounts charged under the instalment reversion plan during the statement period, including fees and any amounts due in relation to tied products;

2. (2)

   information at the date the statement is issued on:

   1. (a)

      the amount owed by the reversion provider to the customer under the instalment reversion plan;

   2. (b)

      if the amount to be received by the customer under the instalment reversion plan is linked to the performance of another investment, the amount to be received (or estimated amount likely to be received) by the customer;

   3. (c)

      the actual remaining term of the instalment reversion plan (but if the term of the instalment reversion plan is open-ended this should be clearly stated);

   4. (d)

      where applicable, the date on which the requirement for the customer to purchase any tied products from the firm ends; and

   5. (e)

      the proportion of the property that is owned by the reversion provider and reversion occupier respectively.

If the tariff of charges has changed since the last annual statement was sent to the customer (or, where it is the first statement, since the customer entered into the instalment reversion plan) and a firm has not already sent a revised tariff of charges, it must include one with the annual statement.

A firm must give the customer reasonable notice of any material change by the firm to the terms of the instalment reversion plan, where the change is permitted without the customer's prior consent.

The reversion administrator and reversion provider may agree who will be responsible for producing and providing to the customer the statement and information required by this section.

The reversion administrator is solely responsible for producing and providing to the customer the information required by this section if the provider is an unauthorised reversion provider.

If the customer wants to release further equity from the property through a home reversion plan, the firm must treat this transaction as a new home reversion plan, even if the parties to the arrangement are the same.