Investment Education PLC

The IFA Guide to FSA Regulation of Mortgage Sales
Last Updated - 18 July 2008
Todays Date -
Return to CoursePrint course
Duration 1 day
Available as an in-house course

Background & Objectives

This one day course provides a practical guide for IFA's as to the rules regulating residential mortgage sales as detailed in MCOB and appropriate sections of the FSA Sourcebook, including the key T&C requirements. 

Particular emphasis is put on understanding the mortgage sales process and how it might run in conjunction with the investment sales process.  At the end of the course delegates will have an understanding of the key regulatory issues involved in selling mortgages and how they apply to the delegates firm and sales/supervisory role. 


No knowledge of the new mortgage rules is assumed.  A broad knowledge of the FSA rules for IFAs is assumed.

Course Content

Section One - The Sourcebook

-Authorisation including threshold conditions and scope of permission

-Approved persons

-Client money

-Appointed representatives


-Complaints handling

-Senior managment arrangements, systems and controls

-Disclosure of the firms status

-Financial resources requirements

-Professional indemnity insurance

-Record keeping


Section Two - MCOB Rules

Background to mortgage regulation including critical dates.  What is a regulated mortgage contract (and what is not).

Which mortgage activities are regulated.  Financial promotion including 'cold calling' rules Advising and selling standards:

-Scope of service (whole of market, limited panel, single lender)

-What must I do to descrbe myself as 'independent'

-Initial disclosure documentation

-Advised sales versus non-advised sales

-Suitable advice rules, including affordability

-Using mortgage sourcing systems in the sales process

-Self certification

Pre-sale disclosure: Key facts illustrations (timing, responsibility, content, commission, disclosure, etc)

Lifetime mortgages: advising and selling standards (as above).  Working with the mortgage and investment sales process

Section Three - Training and Competence

-Advised and non advised sales of standard mortgages

-Advised and non advised sales of lifetime mortgages


-Transitional arrangements (ie grandfathering)


-Record keeping