H3: MCOB - created from Mind Map

Mortgage firms carring out reg. activites Lenders Administrators Arrangers Advisers

ways in which firms & individuals operate effect how MCOB applies Direct authorisation Appointed rep Introducer status

Intermediary status Whole of market Limited to no of lenders single lender

wholly responsible for complying with MCOB & other FCA req'mts

responsibility for compliance lies with principal (lender, network, or IFA)

firm or individual merely passes on leads to authorised person and do not require FCA authorisation as do not advise

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Regulated mortgage contractsRegulated where: lender provides credit obligation secured by legal first mortgage on land in UK at least 40% of property used as dwelling by borrower not regulated where: borrower is a company loan is secured on 2nd or subsequent charge 'buy-to-let' where house dweller is not borrower (except where borrower intends to occupy at some time)

Info vs adviceInfo includes: explaining t&cs comparing interest rates, or f&bs using scripted questions or decision trees Advice does not include: general recommendation to switch from say fixed to variable rate general advice on advantages and disadvantages of borrowing to buy vs renting Standard terms must be used, such as: early repayment higher lending charge lifetime mortgage Principle 6 requires firm must pay due regard to interest of its  customers and treat them fairly.

Other rules qualifying credit promotions real time and non-real time credit promotions advising & selling stds disclosure req's suitability calc of APR responsible lending, charges & arrears, repossessions

H3: MCOB

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