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The Full Handbook

Glossary
High Level Standards
Prudential Standards
Business Standards
- COBS Conduct of Business Sourcebook
- ICOBS Insurance: Conduct of Business sourcebook
- MCOB Mortgages and Home Finance: Conduct of Business sourcebook
  - MCOB 1 Application and purpose
  - MCOB 2 Conduct of business standards: general
  - MCOB 3 Financial Promotion of qualifying credit, home reversion plans and regulated sale and rent back agreements
  - MCOB 4 Advising and selling standards
  - MCOB 5 Pre-application disclosure
  - MCOB 6 Disclosure at the offer stage
  - MCOB 7 Disclosure at start of contract and after sale
  - MCOB 8 Equity release: advising and selling standard
  - MCOB 9 Equity release: product disclosure
  - MCOB 10 Annual Percentage Rate
  - MCOB 11 Responsible lending, and responsible financing of home purchase plans
  - MCOB 12 Charges
  - MCOB 13 Arrears and repossessions: regulated mortgage contracts and home purchase plans
  - Transitional Provisions and Schedules
- BCOBS Banking: Conduct of Business sourcebook
- CASS Client Assets
- MAR Market Conduct
Regulatory Processes
Redress
Specialist sourcebooks
Listing, Prospectus and Disclosure
Handbook Guides
Regulatory Guides

Full Handbook / MCOB / 12 / 5

MCOB 12.5.1 01/07/2009

A firm must ensure that any regulated mortgage contract1,1 home reversion plan2 or regulated sale and rent back agreement1 that it enters into does not impose, and cannot be used to impose, excessive charges upon a customer.

MCOB 12.5.2 01/07/2009

2A firm must ensure that its charges to a customer in connection with the firm entering into, making a further advance or further release on, administering, arranging or advising on a regulated mortgage contract1,1 home reversion plan or regulated sale and rent back agreement1, or arranging or advising on a variation to the terms of a regulated mortgage contract1,1 home reversion plan or regulated sale and rent back agreement 1are not excessive.2

MCOB 12.5.3 31/10/2004

When determining whether a charge is excessive, a firm should consider:

(1) the amount of its charges for the services or products in question compared with charges for similar products or services on the market;

(2) the degree to which the charges are an abuse of the trust that the customer has placed in the firm; and

(3) the nature and extent of the disclosure of the charges to the customer.

MCOB 12.5.4 06/04/2007

2Mortgage lenders 2are also subject to requirements relating to responsible lending (see MCOB 11).