Related provisions for MCOB 6A.3.5

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MCOB 5A.4.1RRP
(1) A firm must provide the consumer with an ESIS for an MCD regulated mortgage contract before the consumer submits an application for that MCD regulated mortgage contract to an MCD mortgage lender, unless an ESIS for that MCD regulated mortgage contract has already been provided.(2) Except in the circumstances in MCOB 5A.4.2 R, a firm must provide the consumer with an ESIS for an MCD regulated mortgage contract when any of the following occurs, unless an ESIS for that MCD regulated
MCOB 5A.4.2RRP
A firm need not provide an ESIS:(1) in relation to a direct deal; (2) if the consumer refuses to disclose key information (for example, in a telephone conversation, his name or a communication address) or where the consumer is not interested in pursuing the enquiry; or(3) if the firm does not wish to do business with the consumer.
MCOB 5A.4.3RRP
If the firm chooses not to give an ESIS in the circumstances in MCOB 5A.4.2R (1), where it has given advice on a direct deal, the firm must give the consumer a written record of the advice.
MCOB 5A.4.4GRP
In the circumstances in MCOB 5A.4.2R (2), the rule in MCOB 5A.4.1R (1) will mean that the consumer may not make an application for an MCD regulated mortgage contract, as an ESIS has not been provided.
MCOB 5A.4.5GRP
The effect of MCOB 5A.2.1 R and MCOB 5A.4.1R (1) is that, if a consumer's application to enter into an MCD regulated mortgage contract with a MCD mortgage lender, made through an MCD credit intermediary, is subsequently passed by that firm to another MCD mortgage lender, then the firm must ensure that the application is amended and the consumer is provided with an ESIS for the other MCD mortgage lender'sMCD regulated mortgage contract before the application is passed to the other
MCOB 5A.4.7RRP
A firm must not undertake any action that commits the consumer to an application (including accepting product-related fees for the MCD regulated mortgage contract concerned) until the consumer has had the opportunity to consider an ESIS.
MCOB 5A.4.8GRP
The effect of MCOB 5A.4.1R (1) and MCOB 5A.4.7 R is that a consumer will be deemed to be committed to an application if, for example, they pay a product-related fee (including a valuation fee) or provides electronic or verbal authority to process an application. It is not necessary for a consumer to provide an MCD mortgage lender with a completed application form to submit an application for an MCD regulated mortgage contract.
MCOB 5A.4.9RRP
The firm dealing directly with the consumer is responsible for ensuring compliance with the content and timing requirements, ie, an MCD mortgage lender is not responsible for ensuring that a consumer has received an ESIS before accepting an application from an MCD mortgage credit intermediary.
MCOB 5A.4.10RRP
Where a firm has already provided an ESIS under MCOB 5A.4.1 R and the terms for the proposed regulated mortgage contract are subsequently materially altered or different, the firm must ensure that the consumer is provided with a revised ESIS, before acting on the amendment, when the change occurs at the point that a consumer submits an application for the MCD regulated mortgage contract.
MCOB 5A.4.12RRP
(1) If, at the point an ESIS must be provided under MCOB 5A.4.1 R, a firm is uncertain whether the contract will be an MCD regulated mortgage contract, the firm must:(a) provide an ESIS; or (b) seek to obtain from the consumer, information that will enable the firm to ascertain whether the contract will be an MCD regulated mortgage contract.(2) Where (1)(b) applies, an ESIS must be provided, unless, on the basis of the information provided by the consumer, the firm has reasonable
MCOB 5A.4.13GRP
Where the consumer requests an ESIS for a particular MCD regulated mortgage contract (see MCOB 5A.4.1R (2)(b)), the purpose of MCOB 5A.4.14 R, MCOB 5A.4.15 R and MCOB 5A.4.16 G is to ensure that the consumer receives an ESIS without unnecessary delay. These requirements do not restrict the information that the firm may obtain from the consumer after it has provided the consumer with an ESIS.
MCOB 5A.4.14RRP
In meeting a request for an ESIS under MCOB 5A.4.1R (2)(b), the firm must not delay the provision of the ESIS by requesting information other than:(1) such information as is necessary to complete the ESIS in accordance with MCOB 5A.5.2 R and MCOB 5A.5.3 R, if the firm does not already know it;(2) where the firm acts in accordance with MCOB 5A.4.12R (2), such information as is necessary to ascertain whether or not the contract will be an MCD regulated mortgage contract;(3) where
MCOB 5A.4.15RRP
Where MCOB 5A.4.14R (3) applies:(1) a firm must ask the consumer relevant questions about their credit history or obtain information on their credit record from a credit reference agency;(2) a credit reference agency must not be used unless:(a) it would be quicker than asking the consumer the relevant questions about their credit history; or(b) the consumer is not able to provide sufficient information on their credit history.
MCOB 5A.4.16GRP
A firm may use information that it already holds on the consumer for the purpose of producing the ESIS (for example, if it already holds the consumer's credit record), providing the use of this information does not delay the consumer receiving the ESIS and the consumer's consent is obtained, where appropriate.
MCOB 5A.4.17RRP
If, on the basis of the information obtained from the consumer or, on the basis of information that the firm already holds on the consumer, the firm would do business with the consumer but not on the terms requested, the firm may provide the consumer with an ESIS for a different MCD regulated mortgage contract, if it chooses to do so.
ICOBS 3.1.1RRP
1This section applies to a firm that carries on any distance marketing activity from an establishment in the United Kingdom, with or for a consumer in the United Kingdom or another EEA State.
ICOBS 3.1.3RRP
A firm must provide a consumer with the distance marketing information (ICOBS 3 Annex 2 R) in good time before conclusion of a distance contract.[Note: article 3(1) of the Distance Marketing Directive]
ICOBS 3.1.6RRP
When a firm makes a voice telephony communication to a consumer, it must make its identity and the purpose of its call explicitly clear at the beginning of the conversation.[Note: article 3(3)(a) of the Distance Marketing Directive]
ICOBS 3.1.7RRP
A firm must ensure that the information on contractual obligations to be communicated to a consumer during the pre-contractual phase is in conformity with the contractual obligations which would result from the law presumed to be applicable to the distance contract if that contract is concluded.[Note: article 3(4) of the Distance Marketing Directive]
ICOBS 3.1.8RRP
A firm must communicate to the consumer all the contractual terms and conditions and the information referred to in the distance marketing disclosure rules in writing or another durable medium available and accessible to the consumer in good time before conclusion of any distance contract.[Note: article 5(1) of the Distance Marketing Directive]
ICOBS 3.1.9GRP
A firm will provide or communicate information or contractual terms and conditions to a consumer if another person provides or communicates it to the consumer on its behalf.
ICOBS 3.1.10RRP
The performance of the distance contract may only begin after the consumer has given his approval.[Note: article 7(1) of the Distance Marketing Directive]
ICOBS 3.1.14RRP
(1) In the case of a voice telephony communication, and subject to the explicit consent of the consumer, only the abbreviated distance marketing information (ICOBS 3 Annex 3 R) needs to be provided during that communication.(2) However, unless another exemption applies (such as the exemption for means of distance communication not enabling disclosure) a firm must still provide the distance marketing information (ICOBS 3 Annex 2 R) in writing or another durable medium available
ICOBS 3.1.15RRP
A firm may provide the distance marketing information (ICOBS 3 Annex 2 R) and the contractual terms and conditions in writing or another durable medium immediately after the conclusion of a distance contract, if the contract has been concluded at a consumer's request using a means of distance communication that does not enable the provision of that information in that form in good time before conclusion of any distance contract.[Note: article 5(2) of the Distance Marketing Di
ICOBS 3.1.16RRP
At any time during the contractual relationship the consumer is entitled, at his request, to receive the contractual terms and conditions on paper. The consumer is also entitled to change the means of distance communication used unless this is incompatible with the contract concluded or the nature of the service provided.[Note: article 5(3) of the Distance Marketing Directive]
ICOBS 3.1.17RRP
(1) A firm must not enforce, or seek to enforce, any obligations under a distance contract against a consumer, in the event of an unsolicited supply of services, the absence of reply not constituting consent.(2) This rule does not apply to the tacit renewal of a distance contract.[Note: article 9 of the Distance Marketing Directive]
ICOBS 3.1.18RRP
If a consumer purports to waive any of the consumer's rights created or implied by the rules in this section, a firm must not accept that waiver, nor seek to rely on or enforce it against the consumer.[Note: article 12 of the Distance Marketing Directive]
ICOBS 3.1.19RRP
If a firm proposes to enter into a distance contract with a consumer that will be governed by the law of a country outside the EEA, the firm must ensure that the consumer will not lose the protection created by the rules in this section if the distance contract has a close link with the territory of one or more EEA States.[Note: articles 12 and 16 of the Distance Marketing Directive]
MCOB 6A.3.1RRP
(1) If a firm offers to enter into an MCD regulated mortgage contract with a consumer, it must provide the consumer with a binding offer set out in an offer document. (2) The firm may also provide an ESIS. (3) The firm's offer in the offer document must be on the basis of the information in the ESIS relevant to that offer.(4) When an MCD mortgage lender provides the consumer with a binding offer, that offer must be accompanied by an ESIS where the characteristics of the offer
MCOB 6A.3.2RRP
(1) If a firm offers to vary an MCD regulated mortgage contract with a consumer, it must provide the consumer with an offer document.(2) The firm may also provide an ESIS. (3) The firm's offer in the offer document must be on the basis of the information in the ESIS relevant to that offer. (4) When an MCD mortgage lender offers to vary an MCD regulated mortgage contract with a consumer, the offer document must be accompanied by an ESIS where:(a) the characteristics of the offer
MCOB 6A.3.3GRP
(1) MCOB 6A.3.1 R does not prevent a binding offer from being subject to lawful conditions, including conditions which make the binding offer subject to one or more of the matters listed below:(a) there being no material change to the facts and circumstances relating to the binding offer which occurs after the date on which the binding offer is made;(b) the fact that the consumer has not knowingly provided incomplete or inaccurate information for the purpose of the assessment
MCOB 6A.3.4RRP
(1) Where an MCD mortgage lender provides the consumer with a binding offer, it must give the consumer a reflection period of at least seven days.(2) The MCD mortgage lender must ensure that, during the reflection period:(a) the offer remains binding on the MCD mortgage lender;(b) the consumer may accept the offer at any time.[Note: article 14(6) of the MCD]
MCOB 6A.3.6RRP
A firm must provide the consumer with a copy of the draft agreement for the MCD regulated mortgage contract at the beginning of the reflection period.[Note: article 14(11) of the MCD]
MCOB 6A.3.8RRP
(1) A firm must make an adequate record of each offer document which it issues to a consumer under MCOB 6A.(2) The record required by (1) must be retained for one year from the date that the offer document is issued to the consumer.(3) If, in accordance with MCOB 6A.4 (Information to be provided in the offer document or separately), information is included in a separate document that is sent with the offer document, that information must also be retained as part of the record
MCOB 6A.3.9RRP
A firm must ensure that the offer document contains a prominent statement explaining:(1) the period for which the offer is valid;(2) where the MCD regulated mortgage contract contains features, such as additional unsecured borrowing facilities, which could result in the consumer borrowing more money that, where such features are used, the amount of the consumer's debt will increase;(3) when any interest rate change on the MCD regulated mortgage contract takes effect. This statement
MCOB 6A.3.11RRP
The offer document must state the repayment strategy the consumer intends to use.
MCOB 6A.3.16GRP
In addition to the information required by MCOB 6A.3.9 R, a firm may include information about how to complain to any other firm about the services that firm provided to the consumer in relation to the MCD regulated mortgage contract. For example, where the consumer received advice from another firm, an MCD mortgage lender may include contact details for the firm that provided the advice.
MCOB 6A.3.17RRP
If the firm knows, at the point that the offer is made to the consumer, that its interest in the MCD regulated mortgage contract will be assigned (by sale or transfer) and the firm will no longer be responsible for setting interest rates and charges, the offer document must:(1) state this; and(2) state, where known, who will be responsible for setting interest rates and charges after the sale or transfer.
MCOB 6A.3.18RRP
Where MCOB 6A.3.17 R applies, if the name of the party who will be responsible for setting interest rates and charges after the sale or transfer is not known at the point the offer is made, the firm must notify the consumer of this as soon as it becomes known.
MCOB 5A.3.3RRP
A firm must not issue an ESIS to a consumer for an MCD regulated mortgage contract for which the consumer is clearly ineligible on the basis of the information that the firm has obtained from the consumer or the MCD mortgage lender's lending criteria.
MCOB 5A.3.4GRP
The purpose of MCOB 5A.3.3 R is not to require a firm to ascertain whether a consumer is eligible for a particular MCD regulated mortgage contract before providing an ESIS. Instead, the purpose is to ensure that the firm takes into account the information it has obtained from the consumer before providing an ESIS to the consumer.
MCOB 5A.3.5RRP
In providing an ESIS to a consumer, a firm must explain to the consumer the importance of reading the ESIS and understanding it.
MCOB 5A.3.6GRP
A firm may satisfy MCOB 5A.3.5 R by drawing the consumer's attention orally to the importance of reading and understanding the ESIS. For example, in a face-to-face meeting, or by referring to its importance in a covering letter or electronic communication, or other written information that accompanies the ESIS.
MCOB 5A.3.7RRP
Any ESIS provided to a consumer by a firm must be in a durable medium.[Note: article 14(2) of the MCD]
MCOB 5A.3.9GRP
MCOB 5A places no restrictions on the provision of information that is not specific to the amount the consumer wants to borrow. For example, marketing literature, including generic mortgage repayment tables or graphs illustrating the benefits of making a regular overpayment on a flexible mortgage. However, such literature may constitute a financial promotion and be subject to MCOB 3A (Financial promotions and communications with customers).
MCOB 5A.3.10RRP
(1) Whenever a firm provides a consumer with information specific to the amount that the consumer wants to borrow on a particular MCD regulated mortgage contract, following an assessment of the consumer's needs and circumstances to comply with MCOB 4.7A.2 R, it must give, clearly and prominently, the following information:(a) the same information on the firm's product range as is required by MCOB 4.4A.1 R, MCOB 4.4A.2 R and MCOB 4.4A.4R (1) (which require firms to provide information
MCOB 5A.3.11GRP
To demonstrate compliance with MCOB 5A.3.10R (1), a firm may wish to consider, for example, doing one or more of the following actions: (1) giving the messages to the consumer in a durable medium;(2) building the requirements into the firm's training of staff, as evidenced by its training and compliance manuals;(3) insert appropriate prompts into paper-based or automated sales systems;(4) having procedures to monitor compliance by its staff with that rule.What is required in each
MCOB 5A.3.12RRP
(1) Whenever, as part of an execution-only sale (or potential execution-only sale), a consumer provides a firm with the information in MCOB 4.8A.14R (1), MCOB 4.8A.14R (2) or (3), the firm must inform the consumer, clearly and prominently, that the consumer has the right to request an ESIS for any MCD regulated mortgage contract which the firm is able to offer the consumer.(2) A firm need not give the information in (1) if it has previously given that information in compliance
MCOB 5A.3.13RRP
A firm must make an adequate record of each ESIS that it issues to a consumer under MCOB 5A.4.1 R where the consumer applies for that particular MCD regulated mortgage contract.
MCOB 5A.3.14RRP
The record required by MCOB 5A.3.13 R must be retained for one year from the date of the application made by the consumer.
MCOB 5A.3.15RRP
MCOB 5A.3.14 R does not require a firm to keep records of ESISs that are issued to a consumer when the consumer does not apply to enter into that particular MCD regulated mortgage contract.
MCOB 5A.3.16GRP
The record maintained under MCOB 5A.3.13 R should contain or refer to matters such as:(1) the date on which the ESIS was provided to the consumer;(2) the date of the application made by the consumer; and(3) details of the medium through which the ESIS was provided.
CONC 2.7.1RRP
(1) Subject to (2) and (3), this section applies to a firm that carries on any distance marketing activity from an establishment in the UK, with or for a consumer in the UK or another EEA State.(2) This section does not apply to an authorised professional firm with respect to its non-mainstream regulated activities.(3) This section does not apply to an activity in relation to a consumer hire agreement.
CONC 2.7.2RRP
(1) Subject to (2), (3) and (4), a firm must provide a consumer with the distance marketing information (CONC 2 Annex 1R) in good time before the consumer is bound by a distance contract or offer.[Note: regulation 7(1) of SI 2004/2095][Note: articles 3(1) and 4(5) of the Distance Marketing Directive](2) Where a distance contract is also a contract for payment services to which the Payment Services Regulations apply, a firm is required to provide to the consumer only the information
CONC 2.7.4RRP
When a firm makes a voice telephony communication to a consumer, it must make its identity and the purposes of its call explicitly clear at the beginning of the conversation. [Note: regulation 7(4) of SI 2004/2095][Note: article 3(3)(a) of the Distance Marketing Directive]
CONC 2.7.5RRP
A firm must ensure that information on contractual obligations to be communicated to a consumer during the pre-contractual phase accurately reflects the contractual obligations which would result from the law presumed to be applicable to the distance contract if that contract is concluded.[Note: regulation 7(5) of SI 2004/2095][Note: article 3(4) of the Distance Marketing Directive]
CONC 2.7.6RRP
A firm must communicate to the consumer all the contractual terms and conditions and the information referred to in the distance marketing disclosure rules (CONC 2.7.2 R to CONC 2.7.5 R) in a durable medium1. That information must be made available and accessible to the consumer in good time before the consumer is bound by any distance contract or offer.1[Note: regulation 8(1) of SI 2004/2095][Note: articles 4(5) and 5(1) of the Distance Marketing Directive]
CONC 2.7.7GRP
(1) Activities in relation to a consumer hire agreement are not financial services within the meaning of the Distance Marketing Directive and do not fall within CONC 2.7. Instead such agreements fall within the Consumer Protection (Distance Selling) Regulations 2000 (SI 2000/2334) if they were made before 13 June 2014, or the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (SI 2013/3134) if they were made on or after that date2.(2) A firm
CONC 2.7.8RRP
The performance of the distance contract may only begin after the consumer has given approval.[Note: article 7(1) of the Distance Marketing Directive]
CONC 2.7.11RRP
In the case of voice telephony communication, and subject to the explicit consent of the consumer, only the abbreviated distance marketing information (CONC 2 Annex 2R) needs to be provided during that communication. However, unless another exception applies (such as the exemption for means of distance communication not enabling disclosure), a firm must still provide the distance marketing information (CONC 2 Annex 1R) in a durable medium that is available and accessible to the
CONC 2.7.12RRP
A firm may provide the distance marketing information (CONC 2 Annex 1R) and the contractual terms and conditions in a durable medium immediately after the conclusion of a distance contract, if the contract has been concluded at a consumer's request using a means of distance communication that does not enable the provision of that information in that form in good time before the consumer is bound by any distance contract or offer.[Note: article 5(2) of the Distance Marketing
CONC 2.7.14RRP
At any time during the contractual relationship, the consumer is entitled, at request, to receive the contractual terms and conditions on paper. The consumer is also entitled to change the means of distance communication used unless this is incompatible with the contract concluded or the nature of the service provided.[Note: regulation 8(2) and (4) of SI 2004/2095][Note: article 5(3) of the Distance Marketing Directive]
CONC 2.7.15RRP
(1) A firm must not enforce, or seek to enforce, any obligations under a distance contract against a consumer in the event of an unsolicited supply of services. The absence of a reply does not constitute consent.(2) This rule does not apply to the tacit renewal of a distance contract.[Note: regulation 15 of SI 2004/2095][Note: article 9 of the Distance Marketing Directive]
CONC 2.7.16RRP
If a consumer purports to waive any of the consumer's rights created or implied by the rules in this section, a firm must not accept that waiver, nor seek to rely on or enforce it against the consumer.[Note: article 12 of the Distance Marketing Directive]
CONC 2.7.17RRP
If a firm proposes to enter into a distance contract with a consumer that will be governed by the law of a country outside the EEA, the firm must ensure that the consumer will not lose the protection created by the rules in this section if the distance contract has a close link with the territory of one or more EEA States.[Note: regulation 16(3) of SI 2004/2095][Note: articles 12 and 16 of the Distance Marketing Directive]
COBS 5.1.-1RRP
3(1) This section applies to a firm that carries on any distance marketing activity from an establishment in the United Kingdom, with or for a consumer in the United Kingdom or another EEA State.3(2) If a firm is an intermediary rather than the supplier under the distance contract, references to 'firm' in COBS 5 Annex 1 R and COBS 5 Annex 2 R are to be interpreted as referring to the supplier except for references to 'firm' in COBS 5 Annex 1 R (2), (4) and (18).3
COBS 5.1.1RRP
1A firm must provide a consumer with the distance marketing information (COBS 5 Annex 1R ) in good time before the consumer is bound by a distance contract or offer. [Note: article 3(1) of the Distance Marketing Directive]
COBS 5.1.3RRP
When a firm makes a voice telephony communication to a consumer, it must make its identity and the purpose of its call explicitly clear at the beginning of the conversation. [Note: article 3(3)(a) of the Distance Marketing Directive]
COBS 5.1.5RRP
A firm must communicate to the consumer all the contractual terms and conditions and the information referred to in the distance marketing disclosure rules (COBS 5.1.1 R to COBS 5.1.4 R) on a durable medium available and accessible to the consumer in good time before the consumer is bound by any distance contract or offer. [Note: article 5(1) of the Distance Marketing Directive]
COBS 5.1.6GRP
A firm will provide information, or communicate contractual terms and conditions, to a consumer if another person provides the information, or communicates the terms and conditions, to the consumer on its behalf.
COBS 5.1.14RRP
If, at any time during the contractual relationship, a consumer that is a party to a distance contract asks a firm:(1) for a paper copy of the terms and conditions of that contract; or(2) to change the means of distance communication used;the firm must provide that paper copy or change the means of distance communication used, unless (in the latter case) that would be incompatible with the contract or the nature of the service provided. [Note: article 5(3) of the Distance Marketing
COBS 5.1.15RRP
(1) A firm must not enforce, or seek to enforce, any obligations under a distance contract against a consumer, in the event of an unsolicited supply of services, the absence of reply not constituting consent.(2) This rule does not apply to the tacit renewal of a distance contract. [Note: article 9 of the Distance Marketing Directive]
COBS 5.1.16RRP
If a consumer purports to waive any of the consumer's rights created or implied by the rules in this section, a firm must not accept that waiver, nor seek to rely on or enforce it against the consumer. [Note: article 12 of the Distance Marketing Directive]
COBS 5.1.17RRP
If a firm proposes to enter into a distance contract with a consumer that will be governed by the law of a country outside the EEA, the firm must ensure that the consumer will not lose the protection created by the rules in this section if the distance contract has a close link with the territory of one or more EEA States. [Note: articles 12 and 16 of the Distance Marketing Directive]
MCOB 4.6.1GRP
A consumer2 has no right to cancel a home finance transaction1 concluded with a firm but may have a right to cancel a distance contract concluded with a mortgage intermediary,3 a home purchase intermediary or a SRB intermediary31for the provision of his services. Whether a mortgage intermediary,3 a home purchase intermediary or a SRB intermediary31 concludes a distance mortgage mediation contract,3 a distance home purchase mediation contract or a distance regulated sale and rent
MCOB 4.6.2GRP
The information provided in accordance with MCOB 4 Annex 3(5) should be sufficiently clear, prominent and informative to enable the consumer2 to understand the right to cancel.2
MCOB 4.6.3GRP
Where the notice of the right to cancel forms part of another document, or is one of a number of documents sent to the consumer2 at the same time, a firm should ensure that the presence of the notice of the right to cancel is drawn to the consumer's2 attention.22
MCOB 4.6.4RRP
(1) A consumer2 has a right to cancel a distance mortgage mediation contract,3 a distance home purchase mediation contract or a distance regulated sale and rent back mediation contract31 in accordance with this section.23(2) The right to cancel must be exercised within 14 days beginning on the later of:(a) the day of the conclusion of the contract; or(b) the day on which the consumer2 receives the contractual terms and conditions and other information required by MCOB 4.4 and
MCOB 4.6.5RRP
A consumer2 who has a right to cancel a distance mortgage mediation contract, a distance home purchase mediation contract or a distance regulated sale and rent back mediation contract31 may, without giving any reason, cancel the contract by serving notice on the firm, before the expiry of the cancellation period in MCOB 4.6.4 R either:23(1) by serving on, or otherwise sending by post, notice to the firm's last known address, addressed to the firm, its appointed representative
MCOB 4.6.6RRP
Where the notice of cancellation is in a durable medium and is served in accordance with MCOB 4.6.5 R, it must be treated as being served on the firm on the date it is despatched by the consumer2.2
MCOB 4.6.7GRP
In the event of any dispute, unless there is clear written evidence to the contrary, the firm should treat the date cited by the consumer2 as being the date when notice was given, posted or otherwise sent.2
MCOB 4.6.8RRP
By exercising a right to cancel under MCOB 4.6.4 R the consumer2 withdraws from the contract and the entire contract is terminated.2
MCOB 4.6.10RRP
When a consumer2 exercises a right to cancel under MCOB 4.6.4 R:2(1) the firm must:(a) pay to the consumer2 without delay, and no later than 30 days after the date on which the firm received notice of cancellation from him, any sums which he has paid to or for the benefit of the firm in connection with the contract (including sums paid by the consumer2 to agents of the firm) except for the amount referred to in (b);22(b) subject to (c), the firm is permitted to require the consumer2
MCOB 2A.3.1RRP
Where an MCD regulated mortgage contract relates to a foreign currency loan, at the time the MCD regulated mortgage contract is entered into the MCD mortgage lender must ensure:(1) the consumer has a right to convert the MCD regulated mortgage contract into an alternative currency under specified conditions; or(2) there are other arrangements in place to limit the exchange rate risk to which the consumer is exposed under the MCD regulated mortgage contract.[Note: article 23(1)
MCOB 2A.3.2GRP
The “other arrangements” referred to in MCOB 2A.3.1R (2) may include:(1) a cap; or(2) a risk warning (where a risk warning would be sufficient to limit the exchange rate risk (if any) to which the consumer is exposed).
MCOB 2A.3.3GRP
Where:(1) an MCD regulated mortgage contract is denominated in the currency of the EEA State in which the consumer is resident ("currency A"); and(2) the consumer receives income or holds assets in currency A but also receives income or holds assets in another currency ("currency B");the MCD regulated mortgage contract will not be a foreign currency loan unless the credit is to be repaid wholly or in part from the income received or assets held in currency B.
MCOB 2A.3.4RRP
The alternative currency referred to in MCOB 2A.3.1R (1) must be either:(1) the currency in which the consumer primarily receives income or holds assets from which the credit is to be repaid, as indicated at the time that the most recent affordability assessment in relation to the regulated mortgage contract was made; or(2) the currency of the EEA State in which the consumer either was resident at the time that the MCD regulated mortgage contract was entered into or is currently
MCOB 2A.3.5RRP
Where a consumer has a right to convert the MCD regulated mortgage contract into an alternative currency in accordance with MCOB 2A.3.1R (1), the exchange rate at which the conversion is carried out must be the market exchange rate applicable on the day of application for conversion, unless otherwise specified in the MCD regulated mortgage contract. [Note: article 23(3) of the MCD]
MCOB 2A.3.6RRP
A firm must disclose to the consumer its arrangements for complying with the obligations in MCOB 2A.3.1 R in the MCD regulated mortgage contract.[Note: article 23(6) of the MCD]
ICOBS 7.2.1RRP
By exercising the right to cancel, the consumer withdraws from the contract and the contract is terminated.
ICOBS 7.2.2RRP
(1) When a consumer exercises the right to cancel he may only be required to pay, without any undue delay, for the service actually provided by the firm in accordance with the contract.(2) The amount payable must not:(a) exceed an amount which is in proportion to the extent of the service already provided in comparison with the full coverage of the contract; and(b) in any case be such that it could be construed as a penalty.(3) A firm must not require a consumer to pay any amount:(a)
ICOBS 7.2.6RRP
(1) A firm must, without any undue delay and no later than within 30 days, return to a consumer any sums it has received from him in accordance with the contract, except as specified in this section.(2) This period shall begin from the day on which the firm receives the notification of cancellation.[Note: article 7(4) of the Distance Marketing Directive]
ICOBS 7.2.7RRP
(1) A firm is entitled to receive from a consumer any sums and/or property he has received from the firm without any undue delay and no later than within 30 days.(2) This period shall begin from the day on which the consumer dispatches the notification of cancellation.[Note: article 7(5) of the Distance Marketing Directive]
ICOBS 7.2.8GRP
If an insurer has made a charge for services provided, the sums and property to be returned by a consumer should not include any money or property provided in settling a claim.
ICOBS 7.2.10GRP
A consumer's notice to cancel a distance contract may also operate to cancel any attached contract which is also a distance financial services contract. This is unless the consumer gives notice that cancellation of the contract is not to operate to cancel the attached contract. (See the Distance Marketing Regulations.) Where relevant, this should be disclosed to the consumer along with other information on cancellation.
CASS 5.5.7GRP
Where an insurance transaction involves more than one firm acting in a chain such that for example money is transferred from a "producing" broker who has received client money from a consumer5 to an intermediate broker and thereafter to an insurance undertaking, each broker firm will owe obligations to its immediate client to segregate client money which it receives (in this example the producing broker in relation to the consumer5and the intermediate broker in relation to the
CASS 5.5.14RRP
(1) A firm which handles client money in accordance with the rules for a non-statutory trust in CASS 5.4 may, to the extent it considers appropriate, but subject to (2), satisfy the requirement to segregate client money by segregating or arranging for the segregation of designated investments with a value at least equivalent to such money as would otherwise have been segregated into a client bank account.(2) A firm may not segregate designated investments unless it:(a) takes reasonable
CASS 5.5.30RRP
(1) In relation to consumers5, a firm must, subject to (2), take reasonable steps to ensure that its terms of business or other client agreements4 adequately explain, and where necessary obtain a client's informed consent to, the treatment of interest and, if applicable, investment returns, derived from its holding of client money and any segregated designated investments.54(2) In respect of interest earned on client bank accounts, (1) does not apply if a firm has reasonable ground
CASS 5.5.31GRP
If no interest is payable to a consumer5, that fact should be separately identified in the firm's5 client agreement 4or terms of business.554
CASS 5.5.34RRP
A firm may allow another person, such as another broker to hold or control client money, but only if:(1) the firm transfers the client money for the purpose of a transaction for a client through or with that person; and(2) in the case of a consumer,5 that customer has been notified (whether through a client agreement,4terms of business, or otherwise in writing) that the client money may be transferred to another person.54
CASS 5.5.41RRP
A firm may hold client money with a bank that is not an approved bank if all the following conditions are met:(1) the client money relates to one or more insurance transactions which are subject to the law or market practice of a jurisdiction outside the United Kingdom;(2) because of the applicable law or market practice of that overseas jurisdiction, it is not possible to hold the client money in a client bank account with an approved bank;(3) the firm holds the money with such
CASS 5.5.53RRP
A firm must not hold, for a consumer5, client money in a client bank account outside the United Kingdom, unless the firm has previously disclosed to the consumer5 (whether in its terms of business, client agreement8 or otherwise in writing):558(1) that his money may be deposited in a client bank account outside the United Kingdom but that the client may notify the firm that he does not wish his money to be held in a particular jurisdiction;(2) that in such circumstances, the legal
CASS 5.5.58RRP
A firm must not undertake any transaction for a consumer5 that involves client money being passed to another broker or settlement agent located in a jurisdiction outside the United Kingdom, unless the firm has previously disclosed to the consumer5 (whether in its terms of business, client agreement 4or otherwise in writing):554(1) that his client money may be passed to a person outside the United Kingdom but the client may notify the firm that he does not wish his money to be
ICOBS 7.1.1RRP
1A consumer has a right to cancel, without penalty and without giving any reason, within:(1) 30 days for a contract of insurance which is, or has elements of, a pure protection contract or payment protection contract; or(2) 14 days for any other contract of insurance or distance contract.[Note: article 6(1) of the Distance Marketing Directive in relation to a distance contract and article 186 of the Solvency II Directive2 in relation to a pure protection contract] 2
ICOBS 7.1.2GRP
A firm may provide longer or additional cancellation rights voluntarily, but if it does these should be on terms at least as favourable to the consumer as those in this chapter, unless the differences are clearly explained.
ICOBS 7.1.3RRP
The right to cancel does not apply to:(1) a travel and baggage policy or similar short-term policy of less than one month's duration; (2) a policy the performance of which has been fully completed by both parties at the consumer's express request before the consumer exercises his right to cancel;(3) a pure protection contract of six months' duration or less which is not a distance contract;(4) a pure protection contract effected by the trustees of an occupational pension scheme,
ICOBS 7.1.5RRP
The cancellation period begins either:(1) from the day of the conclusion of the contract, except in respect of a pure protection contract where the time limit begins when the customer is informed that the contract has been concluded; or(2) from the day on which the consumer receives the contractual terms and conditions and any other pre-contractual information required under this sourcebook, if that is later than the date referred to above.[Note: article 186(1) of the Solvency
ICOBS 7.1.6RRP
If a consumer exercises the right to cancel he must, before the expiry of the relevant deadline, notify this following the practical instructions given to him. The deadline shall be deemed to have been observed if the notification, if on paper or another durable medium, is dispatched before the deadline expires.[Note: article 6(1) and (6) of the Distance Marketing Directive]
MCOB 4A.1.1RRP
An MCD mortgage arranger (unless it is also acting as3 an MCD mortgage lender and3 carrying out a3 direct sale of the proposed regulated mortgage contract3) must, in good time before carrying out any MCD mortgage credit intermediation activity, provide the consumer with at least the following information in a durable medium: (1) the identity and the geographical address of the MCD mortgage arranger2;(2) the Financial Services Register or other registers in which the MCD mortgage
MCOB 4A.1.4GRP
In general, where other requirements for disclosure in a durable medium also apply, the MCD mortgage arranger may, if it would also satisfy those requirements, combine those other disclosures with the information required by MCOB 4A.1.1 R, so long as the combined disclosure is provided to the consumer in good time before the MCD mortgage arranger carries out any MCD mortgage credit intermediation activity.
MCOB 4A.1.5RRP
An MCD mortgage credit intermediary who is not a tied MCD mortgage credit intermediary (unless it is also acting as3 an MCD mortgage lender and3 carrying out a3 direct sale of the proposed regulated mortgage contract3), but who receives commission from one or more MCD mortgage lenders must, at the consumer's request, provide information on the variation in levels of commission payable by the MCD mortgage lenders providing the MCD regulated mortgage contract being offered to the
MCOB 4A.1.6RRP
An MCD mortgage credit intermediary (unless it is also acting as an MCD mortgage lender3 and carrying out a3 direct sale of the proposed regulated mortgage contract3) must inform the MCD mortgage lender of any fee payable by the consumer to the MCD mortgage credit intermediary for its services, for the purpose of calculating the APRC.[Note: article 15(4) of the MCD]
MCOB 4A.1.7RRP
An MCD mortgage credit intermediary (unless it is also acting as3 an MCD mortgage lender and carrying out a3 direct sale of the proposed regulated mortgage contract3) must require their appointed representatives to disclose to the consumer the capacity in which the appointed representative is acting and the MCD mortgage credit intermediary that the appointed representative is representing when contacting or before dealing with any consumer. [Note: article 15(5) of the MCD]
COBS 15.4.1RRP
By exercising a right to cancel, the consumer withdraws from the contract and the contract is terminated.
COBS 15.4.2RRP
(1) This rule applies in relation to a distance contract that is not a life policy, personal pension scheme, cash deposit ISA, cash-only lifetime ISA3 or CTF.(2) When the consumer exercises their3 right to cancel they3 may be required to pay, without any undue delay, for the service actually provided by the firm in accordance with the contract. The performance of the contract may only begin after the consumer has given their3 approval. The amount payable must not:(a) exceed an
COBS 15.4.3RRP
(1) The firm may require the consumer to pay for any loss under a contract caused by market movements that the firm would reasonably incur in cancelling it. The period for calculating the loss shall end on the day on which the firm receives the notification of cancellation.(2) This rule:(a) does not apply for a distance contract or for a contract established on a regular or recurring premium or payment basis; and(b) only applies if the firm has complied with its obligations to
COBS 15.4.4RRP
The firm must, without any undue delay and no later than within 30 calendar days, return to the consumer any sums it has received from him in accordance with the contract2, except for any amount that the consumer may be required to pay under this section. This period shall begin from the day on which the firm receives the notification of cancellation.2 [Note: article 7(4) of the Distance Marketing Directive]
COBS 15.4.5RRP
The firm is entitled to receive from the consumer any sums and/or property he has received from the firm without any undue delay and no later than within 30 calendar days. This period shall begin from the day on which the consumer dispatches the notification of cancellation. [Note: article 7(5) of the Distance Marketing Directive]
ICOBS 4.6.1GRP
1The rules in this section:(1) address the risk that a consumer believes that a firm's remuneration for its pure protection service is included in its adviser charge, where this is not the case; and(2) enable the consumer to evaluate a firm'sadviser charge in the light of any additional remuneration received by the firm for the pure protection service it provides.
ICOBS 4.6.2RRP
A firm which agrees an adviser charge with a consumer and provides an associated pure protection service to that consumer must:(1) in good time before the provision of its services, take reasonable steps to ensure that the consumer understands:(a) how the firm is remunerated for its pure protection service; and(b) if applicable, that the firm will receive commission in relation to its pure protection service in addition to the firm'sadviser charge;(2) as close as practicable
ICOBS 4.6.3GRP
A pure protection service is unlikely to be associated with an adviser charge for the purposes of ICOBS 4.6.2 R if the firm agreed the adviser charge with the consumer 12 months or more before the provision of the pure protection service.
ICOBS 4.6.4GRP
A pure protection service is not associated with an adviser charge for the purposes of ICOBS 4.6.2 R if the adviser charge is agreed with the consumer by a firm or an appointed representative and the pure protection service is provided to that consumer by another firm or appointed representative. However, if a firm or an appointed representative refers a consumer with whom it is agreeing an adviser charge to another firm or appointed representative for the provision of a pure
ICOBS 2.1.1GRP
1Different provisions in this sourcebook may apply depending on the type of person with whom a firm is dealing:(1) A policyholder includes anyone who, upon the occurrence of the contingency insured against, is entitled to make a claim directly to the insurance undertaking.(2) Only a policyholder or a prospective policyholder who makes the arrangements preparatory to him concluding a contract of insurance (directly or through an agent) is a customer. In this sourcebook, customers
ICOBS 2.1.2RRP
If it is not clear in a particular case whether a customer is a consumer or a commercial customer, a firm must treat the customer as a consumer.
ICOBS 2.1.3GRP
2(1) Except where paragraph (2) applies, if a customer is acting in the capacity of both a consumer and a commercial customer in relation to a particular contract of insurance, the customer is a commercial customer.2(2) For the purposes of ICOBS 5.1.4 G and ICOBS 8.1.2 R, if, in relation to a particular contract of insurance, the customer entered into it mainly for purposes unrelated to his trade or profession, the customer is a consumer.2
ICOBS 2.1.4GRP
In practice, private individuals may act in a number of capacities. The following table sets out a number of examples of how an individual acting in certain capacities should, in the FCA's view, be categorised.Customer classification examplesCapacityClassificationPersonal representatives, including executors, unless they are acting in a professional capacity, for example, a solicitor acting as executor.ConsumerPrivate individuals acting in personal or other family circumstances,
EG 10.6.2RP
1For a consumer contract term, if the FCA decides, after notifying the Competition and Markets Authority (the CMA), to the extent required by Schedule 3 to the CRA, to address issues using its powers under Schedule 3, if the contract term is within the CRA's scope, it will, unless the case is urgent, generally first write to a person using or proposing or recommending the use of that term.
EG 10.6.5RP
1In relation to a notice to consumers within the CRA's scope, the FCA will generally, after notifying the CMA, request such an undertaking from the relevant person, if the notice causes the FCA relevant concerns, without first seeking comments. Although the FCA will, unless the case is an urgent one and time does not permit, then have regard to any representations responsive to that request.
EG 10.6.7RP
1In determining whether to seek an injunction under Schedule 3 to the CRA against a person, after or, in an urgent case, instead of requesting such an undertaking, the FCA will consider the full circumstances of each case. A number of factors may be relevant for this purpose. The following list is not exhaustive; not all of the factors may be relevant in a particular case, and there may be other factors that are relevant such as: (1) whether the FCA is satisfied that the contract
EG 10.6.9RP
1In deciding whether to grant an a final injunction under Schedule 3 to the CRA, the court will decide whether the term or notice in question is unfair, purportedly restrictive or exclusionary or non-transparent within the meaning of the CRA. The court may grant an injunction on such terms as it sees fit. For example, it may require the person to stop including a term in contracts with consumers or issuing, publishing, communicating or announcing a notice to consumers from the
EG 10.6.10RP
1The CRA provides that a term or notice that is unfair or a term that excludes or restricts liability in any of the ways specified in the CRA is not binding on the consumer. This is the case irrespective of whether there has been a decision of a court to that effect. To The CRA also provides that, to the extent that it is practicable, the rest of the contract continues in effect.
MCOB 5A.6.1RRP
(1) A firm may provide information to the consumer in addition to that contained in the ESIS.(2) A firm must provide the additional information in (1) in a separate document.(3) A firm may annexe the separate document in (2) to the ESIS.[Note: article 14(8) of the MCD]
MCOB 5A.6.2RRP
(1) Where a firm issues an ESIS in relation to an MCD lifetime mortgage, the firm must simultaneously issue the consumer with a document in a durable medium containing the statements and warnings set out in the following rules, as modified by (2) below, as if the mortgage was an MCD exempt lifetime mortgage: MCOB 9.4.33 R, MCOB 9.4.35 R, MCOB 9.4.62 R, and MCOB 9.4.63 R only.(2) The document issued under (1) must contain the prescribed section headings but need not contain section
ICOBS 8.1.2RRP
For contracts entered into or variations agreed before 1 August 2017, a3 rejection of a consumerpolicyholder's claim is unreasonable, except where there is evidence of fraud, if it is :22(1) in relation to contracts entered into or variations agreed on or before 5 April 2013, for:2(a) non-disclosure of a fact material to the risk which the policyholder could not reasonably be expected to have disclosed; or2(b) non-negligent misrepresentation of a fact material to the risk; or2(2)
ICOBS 8.1.2AGRP
(1) 3Cases in which rejection of a consumer’s claim would be unreasonable (in the FCA’s view) include, but are not limited to rejection:(a) for misrepresentation, unless it is a qualifying misrepresentation (see ICOBS 8.1.3R);(b) where the claim is subject to the Insurance Act 2015, for breach of warranty or term, or for fraud, unless the insurer is able to rely on the relevant provisions of the Insurance Act 2015; and(c) where the policy is drafted or operated in a way that does
ICOBS 8.1.2BRRP
3For contracts entered into or variations agreed on or after 1 August 2017, a rejection of a consumerpolicyholder's claim for breach of a condition or warranty (that is not subject to and within section 10 or 11 of the Insurance Act 2015) is unreasonable unless the circumstances of the claim are connected to the breach.
ICOBS 8.1.3RRP
In this section,3 a “qualifying misrepresentation” is one made by a consumer before a consumer insurance contract was entered into or varied if:2(1) the consumer made the misrepresentation in breach of the duty set out in section 2(2) of the Consumer Insurance (Disclosure and Representations) Act 2012 to take reasonable care not to make a misrepresentation to the insurer; and(2) the insurer shows that without the misrepresentation, that insurer would not have entered into the
EG 19.13.1RP
1The FCA is a competent authority under the CPC Regulation, which aims to encourage and facilitate co-operation between competent authorities across the EU in consumer protection matters. The FCA is a competent authority for the purposes of specified EU consumer protection laws27 in the context of the regulated activities of authorised firms and of breaches by UK firms concerning “specified contracts” as defined in the Financial Services (Distance
EG 19.13.2RP
1All CPC competent authorities have a minimum set of enforcement and investigatory powers available to them to ensure that across the EU there is a robust toolkit to protect consumers. These are powers to: access any relevant document related to the breach;require the supply by any person of relevant information related to the breach;carry out necessary on-site inspections;request in writing that a person cease the breach;obtain from the person responsible for the breach an undertaking
EG 19.13.3RP
1The powers are engaged when a person breaches one of the EU consumer protection laws which are scheduled to the CPC Regulation and the breach is one which harms, or is likely to harm, the collective interests of consumers who live in a member state other than the member state in which the breach was committed; where the person who committed the breach is established; or where evidence or assets relating to the breach are located.
EG 19.13.4RP
1Under the CPC Regulation the FCA can request information from competent authorities in other member states to help it determine whether a relevant breach has taken, or may take, place. The FCA can also request that competent authorities in the relevant member states take action without delay to stop or prohibit the breach. All competent authorities are required to notify their counterparts in relevant member states when they become aware of actual or possible breaches of European
ICOBS 3.2.6RRP
A firm must (except when otherwise agreed by parties who are not consumers):(1) give an ECA recipient the following information, clearly, comprehensibly and unambiguously, and prior to the order being placed by the recipient of the service:(a) the different technical steps to follow to conclude the contract;(b) whether or not the concluded contract will be filed by the firm and whether it will be accessible;(c) the technical means for identifying and correcting input errors prior
ICOBS 3.2.8RRP
The requirements relating to the placing and receipt of orders do not apply to contracts concluded exclusively by exchange of e-mail or by equivalent individual communications.[Note: article 10(4) and 11(3) of the E-Commerce Directive]