MOGI 1
Introduction to Part II
MOGI 1.1
Using this Guide
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MOGI 1.1.1
See Notes
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MOGI 1.1.2
See Notes
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MOGI 1.1.3
See Notes
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MOGI 1.1.4
See Notes
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MOGI 1.1.5
See Notes
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MOGI 1.1.6
See Notes
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Key terms
MOGI 1.1.7
See Notes
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What does MCOB cover?
MOGI 1.1.8
See Notes
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MOGI 1.1.9
See Notes
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MOGI 1.1.10
See Notes
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Which activities does MCOB apply to?
MOGI 1.1.11
See Notes
How to tell whether the chapters of MCOB apply to you
MOGI 1.1.12
See Notes
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MOGI 1.1.13
See Notes
Chapter | Title | Does it apply to you? | What does it include? |
MCOB 1 | Application and purpose | Yes | A
summary of how the MCOB rules
apply to firms. Guidance on the other parts of the FSA Handbook. |
MCOB 2 | Conduct of business standards: general | Yes | General
requirements that apply throughout MCOB. Communications to consumers must be clear, fair and not misleading. Rules on inducements. |
MCOB 3 | Financial promotions | Yes | Content
requirements for qualifying credit promotions. A ban on unsolicited real time promotions (cold calling) except in limited circumstances. Rules on the approval of promotions. |
MCOB 4 | Advising and selling standards | Yes | The
initial disclosure document. The scope of service provided. Suitability of advice. Rules for non-advised sales. |
MCOB 5 | Pre-application disclosure | Yes | Timing and content of the key facts illustration (KFI). |
MCOB 6 | Disclosure at the offer stage | No | Content of the offer document. |
MCOB 7 | Disclosure at start of contract and after sale | Partially | Information requirements for post-sale contract variations (such as further advances). |
MCOB 8 | Lifetime mortgages - advising and selling standards | Only if you sell lifetime mortgages | A tailored regime for advising on and selling lifetime mortgages. |
MCOB 9 | Lifetime mortgages - product disclosure | Only if you sell lifetime mortgages | Tailored product disclosure requirements for lifetime mortgages. |
MCOB 10 | Annual percentage rate | Yes if you calculate APRs. | How to calculate the APR. |
MCOB 11 | Responsible lending | No | Lenders must check the consumer's ability to repay. |
MCOB 12 | Charges | Partially | Charges must not be excessive. |
MCOB 13 | Arrears and repossessions | Generally no, unless you do any debt collection activity. | Rules on treatment of borrowers in arrears and facing repossession. |
Example materials
MOGI 1.1.14
See Notes
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MOGI 1.1.15
See Notes
Business lending
MOGI 1.1.16
See Notes
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General requirements
MOGI 1.1.17
See Notes
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Key facts logo
MOGI 1.1.18
See Notes
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Changes to disclosure requirements when your firm carries on regulated mortgage activities for another authorised firm or an AR.
MOGI 1.1.19
See Notes
The rule amendments allow a TPP (Firm A) undertaking regulated mortgage activities (or insurance mediation activities in relation to non-investment insurance contracts) on behalf of another authorised firm (Firm B) under an outsourcing contract, to disclose to customers that it is B where our rules would otherwise require A to disclose its real identity. The outsourcing agreement between the two firms must acknowledge that the firm outsourcing the activities (B) accepts responsibility for the activities carried on by the other firm (A) on its behalf. Changes have also been made to DISP and SUP as a result of the amendments made to MCOB and GEN.
- 31/05/2005
MOGI 1.1.20
See Notes
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Export chapter as
MOGI 2
Mortgages: Conduct of Business Sourcebook (MCOB)
MOGI 2.1
Financial promotion (MCOB 3)
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Introduction
MOGI 2.1.1
See Notes
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What is the scope of the financial promotion rules?
MOGI 2.1.2
See Notes
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MOGI 2.1.3
See Notes
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Real time and non-real time qualifying credit promotions
MOGI 2.1.4
See Notes
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MOGI 2.1.5
See Notes
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Form and content of qualifying credit promotions
MOGI 2.1.6
See Notes
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MOGI 2.1.7
See Notes
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MOGI 2.1.8
See Notes
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Clear, fair and not misleading
MOGI 2.1.9
See Notes
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MOGI 2.1.10
See Notes
A specific warning must be used where the promotion is for a product where its price varies according to the specific circumstances of the borrower (MCOB 3.6.25 R).
If the APR can vary (for example because of the circumstances of the borrower), then you must include an APR that is representative of business expected to arise from the promotion (MCOB 3.6.22 R to MCOB 3.6.24 G). This means that at least 66% of consumers responding to the promotion and entering a qualifying credit agreement as a result must be charged an APR at or below the stated APR.
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Cold calling
MOGI 2.1.11
See Notes
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MOGI 2.1.12
See Notes
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MOGI 2.1.13
See Notes
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Confirming compliance of qualifying credit promotions
MOGI 2.1.14
See Notes
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Withdrawing compliance
MOGI 2.1.15
See Notes
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MOGI 2.2
Advising and selling standards (MCOB 4)
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Introduction
MOGI 2.2.1
See Notes
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What is the scope of service?
MOGI 2.2.2
See Notes
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MOGI 2.2.3
See Notes
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What must I do if I want to describe myself as 'independent'?
MOGI 2.2.4
See Notes
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MOGI 2.2.5
See Notes
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What must I tell consumers about my mortgage service?
MOGI 2.2.6
See Notes
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MOGI 2.2.7
See Notes
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MOGI 2.2.8
See Notes
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MOGI 2.2.9
See Notes
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What are the requirements for advised sales?
MOGI 2.2.10
See Notes
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MOGI 2.2.11
See Notes
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MOGI 2.2.12
See Notes
MOGI 2.2.13
See Notes
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MOGI 2.2.14
See Notes
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MOGI 2.2.15
See Notes
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MOGI 2.2.16
See Notes
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MOGI 2.2.17
See Notes
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MOGI 2.2.18
See Notes
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MOGI 2.2.19
See Notes
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MOGI 2.2.20
See Notes
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MOGI 2.2.21
See Notes
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What are the requirements for non-advised sales?
MOGI 2.2.22
See Notes
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MOGI 2.2.23
See Notes
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MOGI 2.2.24
See Notes
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MOGI 2.2.25
See Notes
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MOGI 2.3
Pre-sale disclosure (MCOB 5)
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Introduction
MOGI 2.3.1
See Notes
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Key facts illustration (KFI)
MOGI 2.3.2
See Notes
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MOGI 2.3.3
See Notes
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MOGI 2.3.4
See Notes
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When do you have to provide a KFI?
MOGI 2.3.5
See Notes
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MOGI 2.3.6
See Notes
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Who is responsible for the accuracy of the KFI?
MOGI 2.3.7
See Notes
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Can you provide cost information that is not in the form of a KFI?
MOGI 2.3.8
See Notes
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MOGI 2.3.9
See Notes
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MOGI 2.3.10
See Notes
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Can you use generic application forms?
MOGI 2.3.11
See Notes
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When can you obtain an approval in principle for a consumer?
MOGI 2.3.12
See Notes
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Content of the KFI
MOGI 2.3.13
See Notes
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Level of service
MOGI 2.3.14
See Notes
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Disclosure of fees
MOGI 2.3.15
See Notes
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Inclusion of insurance products or a repayment vehicle in the KFI
MOGI 2.3.16
See Notes
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Tied products
MOGI 2.3.17
See Notes
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MOGI 2.3.18
See Notes
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Commission disclosure
MOGI 2.3.19
See Notes
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MOGI 2.3.20
See Notes
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Unsure whether the mortgage is a regulated mortgage?
MOGI 2.3.21
See Notes
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MOGI 2.4
Disclosure at the offer stage (MCOB 6)
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Introduction
MOGI 2.4.1
See Notes
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When is an offer document required?
MOGI 2.4.2
See Notes
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What does the offer document contain?
MOGI 2.4.3
See Notes
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MOGI 2.5
Disclosure at start of contract and after sale
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Introduction
MOGI 2.5.1
See Notes
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Further advances
MOGI 2.5.2
See Notes
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Rate switches
MOGI 2.5.3
See Notes
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Addition or removal of a party to the contract
MOGI 2.5.4
See Notes
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Two changes at the same time
MOGI 2.5.5
See Notes
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MOGI 2.6
Lifetime mortgages: advising and selling standards (MCOB 8)
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Introduction
MOGI 2.6.1
See Notes
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MOGI 2.6.2
See Notes
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MOGI 2.6.3
See Notes
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Initial disclosure
MOGI 2.6.4
See Notes
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Advised sales
MOGI 2.6.5
See Notes
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MOGI 2.6.6
See Notes
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MOGI 2.6.7
See Notes
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Non-advised sales
MOGI 2.6.8
See Notes
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MOGI 2.6.9
See Notes
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MOGI 2.6.10
See Notes
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MOGI 2.7
Lifetime mortgages: product disclosure (MCOB 9)
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Introduction
MOGI 2.7.1
See Notes
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Pre-sale disclosure - general
MOGI 2.7.2
See Notes
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MOGI 2.7.3
See Notes
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Content of the key facts illustration
MOGI 2.7.4
See Notes
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MOGI 2.7.5
See Notes
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Post-sale disclosure
MOGI 2.7.6
See Notes
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MOGI 2.8
Annual percentage rate (MCOB 10)
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MOGI 2.8.1
See Notes
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MOGI 2.8.2
See Notes
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The calculation
MOGI 2.8.3
See Notes
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MOGI 2.8.4
See Notes
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MOGI 2.8.5
See Notes
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MOGI 2.8.6
See Notes
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MOGI 2.8.7
See Notes
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MOGI 2.9
Responsible lending (MCOB 11)
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Introduction
MOGI 2.9.1
See Notes
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Has account been taken of the consumer's ability to repay?
MOGI 2.9.2
See Notes
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MOGI 2.9.3
See Notes
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MOGI 2.9.4
See Notes
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MOGI 2.9.5
See Notes
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MOGI 2.10
Charges (MCOB 12)
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Introduction
MOGI 2.10.1
See Notes
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Excessive charges
MOGI 2.10.2
See Notes
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MOGI 2.11
Arrears and repossessions (MCOB 13)
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Introduction
MOGI 2.11.1
See Notes
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Fair treatment
MOGI 2.11.2
See Notes
Information requirements
MOGI 2.11.3
See Notes
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MOGI 2.11.4
See Notes
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MOGI 3
Training and Competence sourcebook
MOGI 3.1
Training and Competence
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Introduction
MOGI 3.1.1
See Notes
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MOGI 3.1.2
See Notes
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General information on the Training and Competence sourcebook
MOGI 3.1.3
See Notes
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MOGI 3.1.4
See Notes
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Advising on standard mortgages
MOGI 3.1.5
See Notes
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MOGI 3.1.6
See Notes
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MOGI 3.1.7
See Notes
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MOGI 3.1.8
See Notes
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Non-advised sales of standard mortgages
MOGI 3.1.9
See Notes
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Advising on lifetime mortgages
MOGI 3.1.10
See Notes
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Non-advised sales of lifetime mortgages
MOGI 3.1.11
See Notes
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MOGI 3.1.12
See Notes
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Transitional arrangements
MOGI 3.1.13
See Notes
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MOGI 3.1.14
See Notes
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Proposed amendments to TC
MOGI 3.1.15
See Notes
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MOGI 3.1.16
See Notes
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MOGI App
Appendix A: brief description of terms in Part II
MOGI AppA
Appendix A: brief description of terms in Part II
- 01/12/2004
MOGI AppA 1.1
See Notes
Defined term | Meaning |
Arrears | A shortfall that a consumer has in payments due on his mortgage equivalent to two or more regular payments. |
Distance contract | A contract concluded without any face-to-face contact with the consumer (by telephone, internet, email or post). |
Durable medium | In a form that a consumer can keep and refer to as needed. It can include paper, disk and e-mail. |
Financial promotion | An advertisement, brochure, mailshot, telemarketing or sales aid. |
Illustration | The key facts illustration (KFI) describing the costs and features of a mortgage. |
Lifetime mortgage | A mortgage aimed at older consumers and designed to release equity to provide a lump sum or income. |
Mortgage adviser | A firm that advises on regulated mortgages. |
Mortgage arranger | A firm that arranges regulated mortgages or makes arrangements with a view to regulated mortgages. |
Mortgage intermediary | A firm that advises, arranges or makes arrangements with a view to regulated mortgages. |
Mortgage mediation activity | Advising on, arranging or making arrangements with a view to regulated mortgages. |
Non-real time qualifying credit promotion | A financial promotion relating to a mortgage that is not made in during a personal visit, telephone call or other interactive manner, for example a newspaper advertisement, TV commercial, leaflet or a mailshot. |
Personal recommendation | A recommendation given to a specific person (or group or people) to take out or vary a particular regulated mortgage. |
Qualifying credit | Any secured credit provided by a lender who is authorised for mortgage activities. |
Real time qualifying credit promotion | A financial promotion made in the course of a telephone call, personal visit or any other interactive manner (but not including a financial promotion made by e-mail). |
Regulated mortgage contract (RMC) | A loan to an individual secured by first charge on land in the UK, where the property is to be at least 40% used by the borrower or a member of his immediate family. Second charge loans are therefore not RMCs and buy-to-let mortgages are extremely unlikely to be RMCs. |
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MOGI AppB
Appendix B: Lifetime Mortgages: advising and selling - assessment of suitability
MOGI AppB 1
Lifetime Mortgages: advising and selling - assessment of suitability
- 01/12/2004
MOGI AppB 1.1
See Notes
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