Transitional Provisions and Schedules

Part

MCOB Mortgages and Home Finance: Conduct of Business sourcebook

Chapter

Transitional Provisions and Schedules

Printed on: 15/11/2024

Rulebook at: 06/08/2008

Transitional Provisions and Schedules

MCOB TP 1

Transitional Provisions

MCOB TP 1.1

Transitional Provisions

(1)

(2) Material to which the transitional provision applies

(3)

(4) Transitional provision

(5) Transitional provision: dates in force

(6) Handbook provision: coming into force

[deleted]

Expired

[deleted]

Expired

[deleted]

Expired

[deleted]

Expired

[deleted]

Expired

[deleted]

Expired

[deleted]

Expired

[deleted]

Expired

[deleted]

MCOB 5.6.9 R and MCOB 9.4.13 R

A firm may continue to comply with MCOB 5.6.9 R and MCOB 9.4.13 R as they applied before amendment by the Mortgages: Conduct of Business Sourcebook (Amendment No 3) Instrument 2006

31 October 2006 to 31 October 2007

31 October 2006

MCOB 4 Annex 1, MCOB 4 Annex 2, MCOB 5 Annex 1, MCOB 8 Annex 1 and MCOB 9 Annex 1

Key facts logo
A firm may continue to use a keyfacts logo which is not accompanied by a regulatory mark (®).

From 6 November 2006 to 6 November 2007

6 November 2006

MCOB 4.4.1 R, MCOB 4.4.7 R and MCOB 4.10.2 R

A firm may use a combined initial disclosure document prepared in accordance with the rules in COBS 6.3 and COBS 6 Annex 2 in effect at 5 August 2008.

From 6 August 2008 until 31 August 2009

6 August 2008

06/08/2008

MCOB TP 2

Transitional Provisions

MCOB TP 2.1

Transitional Provisions for home purchase plans and home reversion plans

(1)

(2) Material to which the transitional provision applies

(3)

(4) Transitional provision

(5) Transitional provision: dates in force

(6) Handbook provision: coming into force

Every rule in MCOB unless the context otherwise requires and subject to any more specific transitional provision relating to the matter.

(1) If, in relation to home purchase activities, home reversion activities, or the communication of a financial promotion of a home purchase plan or home reversion plan, the application of any provision in MCOB is dependent on the occurrence of a series of events, the provision applies with respect to the events that occur on or after 6 April 2007.

From 6 April 2007 for six months.

6 April 2007

(1) For example, if a customer submits an application for a home purchase plan or a home reversion plan before 6 April 2007, a firm responding to that application on or after 6 April 2007 will not be required to comply with the relevant disclosure requirements in MCOB 5. However, the firm will have to comply with the requirements in MCOB when taking any further action (such as issuing an offer) regarding the application on or after 6 April 2007. (2) In relation to a home reversion plan, an offer document may have to be issued under transitional provision 1R even though no illustration has been given out (because that part of the transaction occurred before 6 April 2007). In such cases, the suitably adapted illustration required as part of an offer document would need to omit: (a) the required text regarding comparing the offer document with the illustration previously given to the customer (see MCOB 6.4.4 R (4)(b)); and(b) Section 2 of the illustration entirely.

MCOB applies to home purchase plans and home reversion plans entered into on or after 6 April 2007. PERG 14 contains guidance on the variation of plans entered into before 6 April 2007.

MCOB 3.8A.3 R (1)

(1) A non-real time financial promotion of a home reversion plan communicated: (a) in a directory (or similar publication) that is updated annually; (b) otherwise than in (a); on or after 6 April 2007 where the deadline for submission for communication was before that date does not need to describe a home reversion plan as a 'home reversion plan'.

(1)(a) from the later of 6 April 2007 or the date of first communication, for one year; (1)(b) from 6 April 2007 for three months.

6 April 2007

06/04/2007

MCOB Sch 1

Record keeping requirements

01/12/2004

MCOB Sch 1.1

The aim of the guidance in the following table is to give the reader a quick overall view of the relevant record keeping requirements.

01/12/2004

MCOB Sch 1.2

It is not a complete statement of those requirements and should not be relied on as if it were.

01/12/2004

MCOB Sch 1.3

Handbook reference

Subject of record

Contents of record

When record must be made

Retention period

MCOB 3.10.1 R

Each non-real time financial promotion

Name of individual who confirmed compliance or approved the financial promotion, and the date of confirmation

Date of confirmation or approval

One year from the date on which the financial promotion was last communicated

MCOB 3.10.2 G (2) to (5)

Each non-real time financial promotion

Details of: the medium for which the financial promotion was authorised; evidence supporting a material factual statement; evidence to show that any typical APR was representative of business

Date of confirmation or approval

One year from the date on which the financial promotion was last communicated

MCOB 3.10.3 G (1)

Each non-real time financial promotion

A copy of the financial promotion as finally published

Date of confirmation or approval

One year from the date on which the financial promotion was last communicated

MCOB 4.7.17 R (1)(a)

Suitability

Details of the customer information obtained, including the customer's needs and circumstances, for the purpose of assessing the suitability of a regulated mortgage contract

When the personal recommendation is made

Three years

MCOB 4.7.17 R (1)(b)

Suitability

An explanation of the reasons why the firm believes the personal recommendation complies with the suitability requirements in MCOB 4.7.4 R (1)

When the personal recommendation is made

Three years

MCOB 4.7.17 R (1)(b)

Suitability

An explanation of the reasons why a personal recommendation has been made on a basis other than that described in MCOB 4.7.13 E (1)

When the personal recommendation is made

Three years

MCOB 4.8.7 R

Scripted questions

A record of the scripted questions used in non-advised sales

The date on which the scripted questions are first used

One year from the date on which the scripted questions are superseded by a more up-to-date record

MCOB 4.6.11 R

Notice of cancellation

A record of the fact that notice has been given (including the original notice instructions and a copy of any receipt of notice issued)

When the firm first becomes aware that notice has been served

Three years

MCOB 5.4.19R

Each illustration a firm issues to a customer where the customer applies for that particular regulated mortgage contract

The Key facts illustrations (KFI) issued

The date the customer applies for the particular regulated mortgage contract

One year

MCOB 5.4.21R

Each KFI retained

Detail of: the date the KFI was issued; the date on which the customer applied for the regulated mortgage contract; and the medium through which the KFI was issued

The date the customer applies for the particular regulated mortgage contract

One year

MCOB 6.4.3R(1)

Offer document

Each offer document issued to the customer

The date on which the firm issues the offer document to the customer

One year

MCOB 6.4.3R(2)

Tariff of charges

A copy of the tariff of charges issued with, or as part of the offer document

The date on which the firm issues the tariff of charges to the customer

One year

MCOB 6.4.3R(3)

Supplemental information relating to mortgage credit cards

Information explaining that rights associated with a traditional credit card do not apply,

The date on which the firm issues the information to the customer

One year

MCOB 7.4.2R

Start of contract disclosure

The amount of the first and subsequent payments; the date and method of collection of the first and subsequent payments; details of insurance products and any repayment vehicle purchased through the firm, of the first premium payable and whether this is to be collected with the mortgage payment; detail of the repayment method, and if interest only a reminder to the customer to maintain a suitable repayment vehicle; what to do if the account falls into arrears; information about linked borrowing or savings available and whether or not overpayments or underpayments are permitted.

The date on which the firm issues the information to the customer

One year

MCOB 8.5.22R(1)(a)

Suitability

Details of the customer information obtained, including the customer's needs and circumstances, for the purpose of assessing the suitability of a equity release transaction

When the personal recommendation is made

Three years

MCOB 8.5.22R(1)(b)

Suitability

An explanation of the reasons why the firm believes the personal recommendation complies with suitability requirements in MCOB 8.5.4R(1)

When the personal recommendation is made

Three years

MCOB 8.5.22R(1)(b)

Suitability

An explanation of the reasons why a personal recommendation has been made on a basis other than that described in MCOB 8.5.17E(1)

When the personal recommendation is made

Three years

MCOB 8.3.1R(1)

Scripted questions

A record of the scripted questions used in non-advised sales

The date on which the scripted questions are first used

One year from the date on which the scripted questions are superseded by a more up-to-date record

MCOB 8.3.1R(1)

Notice of cancellation

A record of the fact that notice has been given (including the original notice instructions and a copy of any receipt of notice issued)

When the firm first becomes aware that notice has been served

Three years

MCOB 9.3.1R

Each illustration a firm issues to a customer where the customer applies for that particular equity release transaction

The keyfacts illustrations (KFI) issued

The date the customer applies for the particular equity release transaction

One year

MCOB 9.3.1R

Each KFI retained

Detail of: the date the KFI was issued; the date on which the customer applied for the equity release transaction ; and the medium through which the KFI was issued

The date the customer applies for the particular equity release transaction

One year

MCOB 9.5.2R

Offer document

Each offer document issued to the customer

The date on which the firm issues the offer document to the customer

One year

MCOB 9.5.2R

Tariff of charges

A copy of the tariff of charges issued with, or as part of the offer document

The date on which the firm issues the tariff of charges to the customer

One year

MCOB 9.5.2R

Supplemental information relating to mortgage credit card

Information explaining that rights associated with a traditional credit card do not apply

The date on which the firm issues the information to the customer

One year

MCOB 9.7.10R

Start of contract disclosure where interest payments are required

The amount of the first and subsequent payments; the date, frequency and method of collection of the first and subsequent payments; the net amount the customer will receive where interest is deducted from income and the method by which this will be paid; details of insurance products purchased through the firm, of the first premium payable and whether this is to be collected with the mortgage payment; confirmation that the lifetime mortgage is on an interest-only basis and details of how the firm expects the capital to be repaid; what to do if the account falls into arrears; information about linked borrowing or savings available and whether or not overpayments or underpayments are permitted.

The date on which the firm issues the information to the customer

One year

MCOB 9.6.1R

Illustrations required on event-driven changes to the contract

A copy of the illustrations issued for further advances requiring authorisation; rate switches and the removal or addition of a party to the contract

When the illustrations is issued

One year

MCOB 9.7.10R

Start of contract disclosure for a drawdown mortgage with fixed payments to the customer

The amount of the first and subsequent payments; the date of issue and method of the payment of the first and subsequent payments; details of insurance products purchased through the firm, and of the first and subsequent premiums and the method and date of collection; details of how the firm expects the capital and interest to be paid; information about linked borrowing or savings available and whether or not repayments are permitted

The date on which the firm issues the information to the customer

One year

MCOB 9.7.10R

Start of contract disclosure for a drawdown mortgage without fixed payments to the customer

Where the customer can choose the frequency of the payment, details of the limitations on frequency and amount of payments; where payments can vary for any other reasons, details of the amount of the first payment and how subsequent payments can vary; the method by which payments will be made; details of insurance products purchased through the firm, and of the first and subsequent premiums and the method and date of collection; details of how the firm expects the capital and interest to be paid; information about linked borrowing or savings available and whether or not repayments are permitted

The date on which the firm issues the information to the customer

One year

MCOB 9.7.10R

Start of contract disclosure where a lump sum payment to the customer is made and interest is rolled up

Confirmation if appropriate that no payments are required and details of how the firm expect capital and interest to be paid; if payments are to be made, the amount, frequency and method of collection of the first and subsequent payments; what to do in the case of arrears; details of insurance products purchased through the firm, and of the first and subsequent premiums and the method and date of collection; details of how the firm expects the capital and interest to be paid; information about linked borrowing or savings available and whether or not repayments are permitted

The date on which the firm issues the information to the customer

One year

MCOB 11.3.1R(2)

Ability of the customer to repay advance

Evidence to demonstrate that the firm has taken into account the customer's ability to repay

When the assessment of the customer's ability to repay is made

One year from the date on which the regulated mortgage contract is entered into, or the further advance provided

MCOB 11.3.4R(2)

Responsible lending policy

A record of the firm's written policy setting out the factors the firm will take into account in assessing the customer's ability to repay

The date on which the policy is set

One year from the date on which the policy is replaced

MCOB 13.3.9

Dealings with customers in arrears or with a mortgage shortfall debt

Details of all communication with the customer; information relating to any repayment plan; date of issue of any legal proceedings; arrangements made for sale of a repossessed property; and the basis of any tailored information where the loan is for a business purpose.

The date on which the customer's account first falls into arrears

One year from the date on which the relevant payment shortfall or mortgage shortfall debt is cleared

06/04/2007

MCOB Sch 2

Notification Requirements

01/12/2004

MCOB Sch 2.1

There are no notification requirements in MCOB.

01/12/2004

MCOB Sch 3

Fees and other required payments

01/12/2004

MCOB Sch 3.1

There are no requirements for fees or other payments in MCOB.

01/12/2004

MCOB Sch 4

Powers exercised

01/12/2004

MCOB Sch 4.1

The following powers and related provisions in or under the Act have been exercised by the FSA to make the rules in MCOB:

Section 138 (General rule-making power)

Section 139 (Miscellaneous ancillary matters)

Section 145 (Financial promotion rules)

Section 149 (Evidential provisions)

Section 156 (General supplementary powers)

01/12/2004

MCOB Sch 4.2

The following powers in the Act have been exercised by the FSA to give the guidance in MCOB:

Section 157(1) (Guidance)

01/12/2004

MCOB Sch 5

Rights of action for damages

01/12/2004

MCOB Sch 5.1

The table below sets out the rules in MCOB contravention of which by an authorised person may be actionable under section 150 of the Act (Actions for damages) by a person who suffers loss as a result of the contravention.

If a "Yes" appears in the column headed "For private person?", the rule may be actionable by a private person under section 150 (or, in certain circumstances, his fiduciary or representative; see article 6(2) and (3)(c) of the Financial Services and Markets Act 2000 (Rights of Action) Regulations 2001 (SI 2001/2256)). A "Yes" in the column headed "Removed" indicates that the FSA has removed the right of action under section 150(2) of the Act. If so, a reference to the rule in which it is removed is also given.

The column headed "For other person?" indicates whether the rule may be actionable by a person other than a private person (or his fiduciary or representative) under article 6(2) and (3) of those Regulations. If so, an indication of the type of person by whom the rule may be actionable is given.

01/12/2004

MCOB Sch 5.2

Chapter / Appendix

Section / Annex

Paragraph

Right of action under section 150

For private person?

Removed?

For other person?

All rules in MCOB with the status letter "E"

Any rule in MCOB which prohibits an authorised person from seeking to make provision excluding or restricting any duty or liability

Yes

Any other person

All other rules in MCOB

Yes

01/12/2004

MCOB Sch 6

Rules that can be waived

01/12/2004

MCOB Sch 6.1

The rules in MCOB may be waived by the FSA under section 148 of the Act (Modification or waiver of rules).

01/12/2004