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Status: You are viewing the version of the handbook as on 2005-06-30.

MCOB 4.2 Purpose

MCOB 4.2.1GRP
  1. (1)

    This chapter amplifies Principle 6 (Customers' interests), Principle 7 (Communications with clients) and Principle 9 (Customers: relationships of trust). Principle 6 requires a firm to pay due regard to the interests of its customers and treat them fairly. Principle 7 requires a firm to pay due regard to the information needs of its clients and communicate information to them in a way which is clear, fair and not misleading. Principle 9 requires a firm to take reasonable care to ensure the suitability of its advice.

  2. (2)

    The purpose of this chapter is to ensure that:

    1. (a)

      customers are adequately informed about the nature of the service which they may receive from a firm in relation to regulated mortgage contracts. In particular firms need to make clear to customers the scope of regulated mortgage contracts available from them; and

    2. (b)

      where advice is given, it is suitable for the customer. The steps firms need to take to ensure that the customer receives suitable advice will vary depending on the demands and needs of the customer and the type of regulated mortgage contract.

  3. (3)

    This chapter also implements certain requirements of the Distance Marketing Directive in relation to distance mortgage mediation contracts (see MCOB 4.5 (Additional disclosure for distance mortgage mediation contracts with retail customers) and MCOB 4.6 (Cancellation of distance mortgage mediation contracts)).