What Is Fca Mcob?

The FCA’s Mortgages and Home Finance: Conduct of Business Sourcebook (MCOB) applies to firms that carry out lending and selling of a range of home finance products including mortgages, home purchase plans, home reversion plans, lifetime mortgages and sale and rent back agreements.

What is the purpose of MCOB?

MCD disclosure at offer stage (MCOB 6A)
MCOB 6A applies to MCD mortgage lenders. Its purpose is to ensure that a customer receives a clear offer document, in a durable medium, to enable them to check the features and price of the MCD regulated mortgage contract before they enter into it.

Where is MCOB found?

MCOB is found under “Business Standards” in the FCA Handbook contents menu. (Expand the box and it is the third in the list.) MCOB applies as set out in its Chapter 1. MCOB 1.2.

What MCOB 11?

I.
MCOB 11: 1) Requires a firm to treat customers fairly by assessing, before deciding to: a) enter into a regulated mortgage contract; or b) vary a regulated mortgage contract; whether the customer will be able to repay the sums borrowed and interest (in the case of a regulated mortgage contract).

Do MCOB rules apply to further advances?

The ESIS provided under MCOB 7B. 1.2 R must be based on the amount of the further advance only. To comply with MCOB 7B. 1.4 R, a firm should calculate the APRC on the basis of the further advance amount only.

Who does the MCOB apply to?

The MCOB rules apply to every firm that carries on a home finance activity. A ‘firm’ may be a mortgage lender, administrator, arranger or adviser. A ‘home finance activity’ may be a regulated mortgage contract, a home purchase plan or a home reversion plan.

What are the four regulated activities covered in MCOB?

Related Content

• Conduct of Business Regime – Financial Services.
• Banking.
• Mortgages and Home Finance Financial Services.
• Systems and controls.
• Financial Promotion and Marketing.

Which section of FCA Handbook is Mcob?

MCOB 11.6 Responsible lending and financing – FCA Handbook.

Do mortgage brokers need to be regulated?

All mortgage brokers operating in the UK must be regulated by the FCA or work as an agent of a regulated firm.

When did second charge mortgages move from conc to Mcob?

When did second charge mortgages become regulated by the FCA? The new regulations were introduced as part of the Mortgage Creative Directive in March 2016. So second charge mortgages are regulated from that date.

Is MCD based on Mcob?

The MCD requires a particular method of calculating the APRC, although it is similar to the FCA existing rules. The method of calculation for the APRC is set out in MCOB 10A.

What does Sysc mean?

Senior Management Arrangements, Systems and Controls sourcebook
The Senior Management Arrangements, Systems and Controls sourcebook (SYSC) is located within the high-level standards block of the FCA Handbook. An important theme of corporate governance is the nature and extent of the responsibility of particular individuals in an organisation for risk management.

Who regulates responsible lending?

Occasionally, breaches of responsible lending obligations by lenders can amount to “maladministration in lending”. The Financial Ombudsman Service (FOS) has jurisdiction to assess whether there has been maladministration by the lender.

What is the difference between a remortgage and a further advance?

Remortgage (moving from your existing lender to another lender, but without increasing your borrowing) Further Advance (staying with the same lender but borrowing an extra amount)

Are BTL mortgages regulated by Mcob?

As a commercial (not consumer) transaction buy to let mortgages are not regulated by the Financial Conduct Authority; however, from 21 March 2016 this will change for any transaction classed as Consumer Buy to Let.

Can a broker do a further advance?

You can apply for a further advance directly with your lender or if you are unsure of the process, you can use an experienced mortgage broker.

What is the difference between a regulated and non regulated mortgage?

Put simply: a regulated loan is regulated by the Financial Conduct Authority (FCA), whereas an unregulated loan is not. Regulation means that consumers are protected from incorrect advice or miss-selling from lenders or brokers. Unregulated bridging loans don’t have this protection.

Who pays for the FCA to regulate firms?

We are funded entirely by the fees and levies from the firms we regulate. We do not receive any funding from other sources. 1.2 This document applies to all FCA fee-payers and to any businesses considering applying for FCA authorisation or registration.

What type of mortgage firms are regulated by the FCA?

Mortgage lenders and intermediaries

• Banks, building societies and credit unions.
• Claims management companies.
• Consumer credit firms.
• Electronic money institutions.
• Financial advisers.
• Fintech and innovative businesses.
• General insurers and insurance intermediaries.
• Investment managers.

What are the 6 categories included in regulated activities?

Regulated Activity for Safeguarding Adults

• Providing healthcare.
• Providing personal care.
• Providing social work.
• Assistance with general household matters.
• Assisting with a person’s own affairs.
• Conveying a person to a place of social work or care.

What are FCA regulated activities?

Regulated activities relate to investments specified by the Treasury or to property, and include: dealing with investments (buying, selling etc) or offering or agreeing to do so, and in the case of insurance contracts, carrying out the contract. arranging investment deals. accepting deposits.