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MCOB 4.2 Purpose

  1. (1)

    This chapter amplifies Principle 6 (Customers' interests), Principle 7 (Communications with clients) and Principle 9 (Customers: relationships of trust).

  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 home finance transactions1. In particular firms need to make clear to customers the scope of home finance transactions 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 home finance transaction1.

  3. (3)

    This chapter also implements certain requirements of the Distance Marketing Directive in relation to distance mortgage mediation contracts and distance home purchase mediation contracts1.