Regulated mortgage contract meaning

This Practice Note outlines the key FCA rules applying to appointed representatives (ARs) who perform regulated activities on behalf of authorised persons. Where the conditions of the AR framework are satisfied, ARs are exempt from obtaining their own authorisation. For guidance on the contractual requirements for ARs, see SUP 15 and the Practice Note: Contract requirements for appointed representatives. For further guidance on arrangements with multiple principals, see Practice Note: Multiple principals and appointed representatives; and for more detail on a principal's responsibility for its ARs, see Practice Note: A principal's responsibility for its appointed representatives. The FCA Handbook also explains how to contact the FCA's Supervision Hub with appointed representatives enquiries. New regime for appointed representatives Together with HM Treasury's call for evidence on the AR regime, in December 2021 the FCA published consultation paper CP21/34 proposing enhancements to its AR framework. The proposals covered collecting more data on ARs and Introducer Appointed Representatives (IARs), strengthening principals' reporting obligations, and clarifying and reinforcing principals' roles and expectations,...

This Practice Note explores the Financial Conduct Authority (FCA’s) Mortgages and Home Finance: Conduct of Business sourcebook (MCOB) obligations on distribution and disclosure that apply to lenders, providers and intermediaries involved with regulated mortgage contracts (RMCs), home reversion plans (HRPs), home purchase plans (HPPs) and regulated sale and rent back agreements (SRBAs). Collectively, RMCs, HRPs, HPPs and SRBAs are termed home finance transactions (MCOB 1.2.2 G(1)). The relevant provisions sit mainly in MCOB chapters 4–9 (MCOB 4–MCOB 9). This Practice Note also explains the rules for accurately computing the annual percentage rate (APR) and the annual percentage rate charge (APRC) in chapters 10 and 10A of MCOB (MCOB 10 and MCOB 10A). For guidance on other elements of MCOB, see Practice Notes: Mortgage and home finance conduct of business—application and general requirements; Mortgage and home finance conduct of business—financial promotion regime; and Mortgage and home finance conduct of business—responsible lending, charges and arrears requirements. Purpose of MCOB advising and selling standards MCOB 4 sets out rules and guidance...

The section 2 requirements in the Law of Property (Miscellaneous Provisions) Act 1989 (LP(MP)A 1989) are disapplied for certain contracts and trusts. This Practice Note identifies those categories and outlines how the exceptions take effect. Excepted contracts The contractual formalities set out in LP(MP)A 1989, s 2 do not apply to contracts: for leases not exceeding three years (ie short leases under Law of Property Act 1925, s 54) made in the course of a public auction regulated under the Financial Services and Markets Act 2000 (other than a regulated mortgage contract, regulated home reversion plan, regulated purchase plan or a regulated sale and rent back agreement) Constructive trusts The statutory formalities in LP(MP)A 1989, s 2 do not affect the creation or operation of resulting, implied or constructive trusts. No written evidence is required. A constructive trust arises in relation to legal title where a party’s conduct makes it unconscionable to allow them to deny the other party...