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.

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MCOB - Advising and Selling

About this Course

Available as part of our FCA Compliance Library.

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 the 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
  • Identify the requirements for dealing with High Net Worth (HNW) and business customers
  • Understand the record-keeping requirements

Course outline

Welcome

What is MCOB - Advising & Selling?

- Purpose of MCOB

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 distant contract

- Rolling up of fees & charges
- Contact 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
- Treating customers fairly 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

FCA Courses Library

Our FCA Course library of over 60 training modules covers everything from high-level and conduct of business standards to thematic topics, including treating customers fairly.

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FCA Courses Library

Course Specifications

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Structure

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

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Audience

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

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Design

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

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Test-Out

Ability to offer optional test-out, whereby users can choose to skip the course content and complete the learning assignment simply bypassing the assessment.

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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.

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Tailoring

Fully customisable on Skillcast Portal CMS.

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Translation

Pre-translated versions not available, but all text content can be exported for translation into all languages.

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Localisation

Based on UK legislation, but suitable for global audiences upon the removal of UK-specific references and translation as necessary.