MCOB - Advising & Selling Course

The Mortgage Conduct of Business (MCOB) Advising and Selling standards apply to businesses that advise on or arrange mortgage contracts, equity release transactions, home purchase plans or sale and rent back agreements.

These standards highlight three of the FCA's Principles of Business that relate to customers' interests, communications with customers and relationships of trust with customers.

Our MCOB for Advising and Selling Course explains the FCA's business rules that apply to advising and selling in the home finance business.

About this Course

This SCORM-compatible course is part of our FCA Compliance Library.

The library is available in the Skillcast Standard plan for larger companies or Skillcast Basic plan for those with under 50 learners.

Learning Objectives

This course will prepare your employees to:

Know what disclosures must be made when advising customers
Understand the difference between advice and information
Know the procedure for establishing suitability and affordability
Identify what action to take when customers reject your advice
Recognise the requirements for dealing with a customer on an execution-only basis
Recognise the requirements for dealing with High Net Worth (HNW) and business customers
Understand the record-keeping requirements

Latest Course Updates

Course redesigned with a more modern feel
Full review conducted by an FCA expert
Text & image updates throughout the course

Course outline

Welcome

What is MCOB - Advising & Selling?

- Purpose of MCOB

Introductions

- Proving mortage advice
- Understanding clients' needs - Case 1
- Understanding clients' needs - Case 2
- Understanding clients' needs
- Understanding clients' needs - Case 3
- Exercise: Understanding clients' needs - Case 3
- Understanding clients' needs - Case 3 continued

Initial disclosure requirements

- Range of products
- Examples of disclosures on product range
- Remuneration
- Exercise: Remuneration

Additional disclosure where the services are to be provided to a consumer under a distance contract

- Rolling up of fees & charges
- Contract by telephone
- Exercise 1: Online transactions
- Exercise 2: Online transactions

Advised sales

- Information versus advice
- Exercise: Information versus advice

Establishing suitability

- Obtaining information
- Appropriateness to needs & circumstances
- Assessment - special situations
- Decision to purchase
- Affordability
- Exercise: Assessing the affordability of Paul's mortgage
- Exercise: Verifying the income of self-employed customers
- The challenges of assessing affordability
- Exercise: The relationship between expenditure & affordability
- Key requirements: Income multiples
- Existing borrowers
- Exercise: Business customers
- Exercise: High Net Worth (HNW) mortgage customers
- Why some sales must always be advised
- Stress-testing affordability
- Achieving good outcomes when assessing affordability
- Exercise: Customer rejects the recommendation
- Exercise: Customer enquires about an unsuitable mortgage

Execution-only basis

- When advice is rejected
- Rules for proceeding on an execution-only basis
- Debt consolidation

Record keeping

Exercise: Record keeping

Summary

Affirmation

Assessment

Course Specifications

Structure

Approximately 45-minute long e-learning course followed by a 10-question assessment.

Audience

Suitable for all staff - examples and interactivities designed for staff at all levels. No previous knowledge or experience is required.

Design

SHARD-compliant, responsive display on all devices, accessibility on screen readers, visual design controlled via a client style sheet.

Compatibility

All Windows, Mac OSX, iOS, Android (Flash-free for mobile compatibility). AICC and SCORM 1.2-compliant, suitable for both hosted and deployed SCORM or AICC.