What Do The Mcob Rules 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.

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.

What is FCA MCOB?

MCOB 1.2.2 G 26/04/2014. 3. (1) This sourcebook applies to activities carried out in respect of regulated mortgage contracts, equity release transactions, home purchase plans, and regulated sale and rent back agreements. Together, these products are referred to as home finance transactions.

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).

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.

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)

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 FCA’s 3 objectives?

To support this primary objective, the FCA has three operational objectives: To secure an appropriate degree of protection for consumers. To protect and enhance the integrity of the UK financial system. To promote effective competition in the interests of consumers.

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.

Was MCD based on Mcob rules?

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. The MCOB accordingly now contains two different methods for calculating the APRC for a loan, depending on whether the loan is covered by the MCD.

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.

What Sysc 13?

SYSC 13 provides guidance on how to interpret SYSC 3.1. 1 R and SYSC 3.2. 6 R, which deal with the establishment and maintenance of systems and controls, in relation to the management of operational risk.

What is basic essential expenditure?

Essential expenses
This is what you regularly spend on the things you cannot do without, such as: food. household cleaning and laundry. gas, electricity and other heating costs. water bills.

Are limited companies covered by conc?

The legislation does not apply to:
Limited companies. Local authorities. Charities. Partnerships of four or more partners.

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 activities are regulated by the FCA?

Regulated financial activities

• 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.
• asset administration and safekeeping.
• investment management and advising on investments.

What is a regulated activity NHS?

The provision of health care by any health care professional to an adult, or the provision of health care to an adult under the direction or supervision of a health care professional, is regulated activity.

What do lenders look at when remortgaging?

The lender will want to see how you’re coping with your monthly mortgage payments the kind of impact it has on your outgoings in general, and what percentage of your income it is. They may also look at how much of your home you have so far paid off.

What happens if my house is worth more when I remortgage?

Well, an increase in property values can be good news if you’re thinking of remortgaging. This is because it often gives you a more favourable loan to value – and this is one of the points lenders use to determine how much you can borrow and what interest you’re charged.