Content Options

Content Options

View Options

You are viewing the version of the document as on 2023-11-28.

MCOB 2.7 Application to electronic media and distance communications


GEN 2.2.14 R (References to writing) has the effect that electronic media may be used to make communications that are required by the Handbook to be 'in writing' unless a contrary intention appears. In MCOB, the use of an electronic medium is restricted in certain circumstances to a durable medium as required by the Distance Marketing Directive.

Additional guidance in respect of electronic communication with or for customers


For any electronic communication with a customer in relation to a home finance transaction3 a firm should:

  1. (1)

    have in place appropriate arrangements, including contingency plans, to ensure the secure transmission and receipt of the communication; it should also be able to verify the authenticity and integrity of the communication together with the date and time sent and received; the arrangements should be proportionate and take into account the different levels of risk in a firm's business;

  2. (2)

    be able to demonstrate that the customer wishes to communicate using this medium; and

  3. (3)

    if entering into an agreement, make it clear to the customer that a contractual relationship is created that has legal consequences.


A firm should note that GEN 2.2.14 R (References to writing) does not affect any other legal requirement that may apply in relation to the form or manner of executing a document or agreement.

General provisions related to distance contracts


During the course of a distance contract with a consumer4, the making or performance of which constitutes or is part of a regulated mortgage contract, home purchase plan or regulated sale and rent back agreement:5

  1. (1)

    the firm must, at the consumer's4 request, provide a paper copy of the contractual terms and conditions of the regulated mortgage contract, home purchase plan,3 regulated sale and rent back agreement5 or services being provided by the firm; and

  2. (2)

    the firm must comply with the customer's request to change the means of distance communication4 used, unless this is incompatible with the regulated mortgage contract, home purchase plan,3 regulated sale and rent back agreement5 or service being provided by the firm.


1A firm must ensure that information provided to a consumer4 before the conclusion of a distance contract about his contractual obligations under that contract conform with the contractual obligations that would be imposed on him under the law applying if the contract were concluded.


Unsolicited services

  1. (1)

    12A firm must not:

    1. (a)

      supply a service to a consumer4 without a prior request on his part, when this activity includes a request for immediate or deferred payment; or

    2. (b)

      enforce any obligations against aconsumer4 in the event of unsolicited supplies of services, the absence of a reply not constituting consent.

  2. (2)

    Paragraph (1) applies in relation to mortgage mediation activities, entering into a regulated mortgage contract, home purchase mediation activities or entering into a home purchase plan3 under an organised distance sales or service-provision scheme run by the firm or by an intermediary, who, for the purpose of that supply, makes exclusive use of one or more means of distance communication4 up to and including the time at which the services are supplied.