MMR - Removal of Non-Advised Sales

 The new Mortgages and Home Finance: Conduct of Business sourcebook (MCOB) rules, which come into force on 26 April 2014 (as a result of the MMR), will remove the non-advised sales process.  After 26 April 2014, the rules will allow firms to conduct advised sales and, in limited circumstances, execution-only sales.

 This will affect the way firms sell home finance products and may require some firms to vary their Part 4A permission and/or consider whether their employees have appropriate qualifications. There are a number of firms who currently only hold an arranging mortgage or home finance activity and are not permitted to conduct regulated advice. The FCA has produced a factsheet to assist firms who wish to apply to add the relevant mortgage and/or home finance activities to their permission.

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