Mortgage and home finance conduct of business—distribution and disclosure requirements

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Mortgage and home finance conduct of business—distribution and disclosure requirements
  • Introduction to the FCA's distribution and disclosure requirements
  • Purpose of MCOB advising and selling standards
  • Advised and execution-only sales
  • Execution-only sales
  • Advised sales
  • Disclosure requirements
  • Initial disclosure requirements
  • Additional disclosure by MCD mortgage credit intermediaries
  • Adequate explanations
  • More...

Mortgage and home finance conduct of business—distribution and disclosure requirements

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime and Impact of Brexit: mortgage credit—quick guide.

Introduction to the FCA's distribution and disclosure requirements

This Practice Note considers the Financial Conduct Authority (FCA)'s Mortgages and Home Finance: Conduct of Business sourcebook (MCOB) requirements concerning distribution and disclosure standards that lenders, providers and intermediaries of regulated mortgage contracts (RMCs), home reversion plans (HRPs), home purchase plans (HPPs) and regulated sale and rent back agreements (SRBAs) have to comply with and which are predominantly contained in chapters 4 to 9 of MCOB (MCOB 4 to MCOB 9). It also touches on the requirements for the proper calculation of the annual percentage rate (APR) and the Annual Percentage Rate Charge (APRC) in chapters 10 and 10A of MCOB (MCOB 10)

Together, RMCs, HRPs, HPPs and SRBAs are referred to as 'home finance transactions' (MCOB 1.2.2G(1)). RMCs which are life-time mortgages and HRPs are together referred to as

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