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MCOB 8.1 Application

Who?

MCOB 8.1.1RRP

This chapter applies to a firm in a category listed in column (1) of the table in MCOB 8.1.2 R in accordance with column (2) of that table.

MCOB 8.1.2RRP

This table belongs to MCOB 8.1.1 R

(1) Category of firm

(2) Applicable section

equity release provider4

4

whole chapter except MCOB 8.5 and MCOB 8.74

equity release adviser4

4

whole chapter except MCOB 8.6. MCOB 8.7 does not apply in relation to a lifetime mortgage4

equity release arranger4

4

whole chapter except MCOB 8.5. MCOB 8.7 does not apply in relation to a lifetime mortgage4

What?

MCOB 8.1.3RRP
4
  1. (1)

    This chapter applies to a firm4 in the course of carrying on an equity release activity:4

    4
    1. (a)

      makes, or anticipates making, a personal recommendation about; or

    2. (b)

      gives, or anticipates giving, personalised information relating to;

    the customer:

    1. (c)

      entering into an equity release transaction4; or

      4
    2. (d)

      varying the terms of an equity release transaction4 entered into by the customer.4

      4
  2. (2)

    In respect of arranging or advising on a home reversion plan for a customer who is acting in his capacity as an unauthorised reversion provider, only MCOB 8.1, MCOB 8.2 and MCOB 8.7 apply.4

    4
MCOB 8.1.4RRP
  1. (1)

    Initial disclosure requirements apply4 only in relation to varying the terms of an equity release transaction4 entered into by the customer in any of the following ways:

    44
    1. (a)

      adding or removing a party;

    2. (b)

      taking out a further advance; or

    3. (c)

      switching all or part of the lifetime mortgage3 from one interest rate to another.1

      3
  2. (2)

    Otherwise, this chapter applies in relation to any form of variation of an equity release transaction.4

    44
MCOB 8.1.5G

If a firm is an authorised professional firm, MCOB 1.2.10 R (3) has the effect that when the firm conducts non-mainstream regulated activities with a customer, MCOB 4.4 (Initial disclosure requirements) (as modified by MCOB 8) applies. The firm is only required to provide the initial disclosure information in section 7 (What to do if you have a complaint) and section 8 (Are we covered by the Financial Services Compensation Scheme (FSCS)?)4 of the initial disclosure document or combined initial disclosure document.4

424