MMR Intermediary Workshop FAQs - Financial Conduct Authority

Mortgage Market Review Intermediary Workshop FAQs

Disclosure

Q1: How can I evidence oral disclosure?

Answer:

You do not need to record each oral disclosure made.  

We have given guidance in the rules on how intermediaries might demonstrate compliance with this requirement. This includes, for example, building the requirements into your staff training, as shown in their training and compliance manuals, inserting appropriate prompts into paper-based or automated sales systems, and having procedures in place to monitor staff compliance with the rules.

Q2: If a customer complains to the Financial Ombudsman Service (FOS), how can I evidence that oral disclosure has taken place?

Answer:

See the answer above. The FOS is aware of our requirements and guidance on how compliance might be demonstrated.

Q3: Do I have to give any form of special disclosure for higher risk products?

Answer:

There are some extra disclosure requirements for firms offering either Sale and Rent Back or equity release.

Q4: What is the FCA’s view of labels such as ‘independent’ or ‘whole of market’ when describing the service provided?

Answer:

Under the MMR reforms we do not require you to use labels such as ‘independent’ and ‘whole of market.’  But intermediaries must explain to their customers any limitations to their service. For example ‘I only offer mortgages from a number/panel of lenders. I can provide you with a list of these.’  

We give further examples in PS12/16.

Q5: Do I have to provide two Key Facts Illustrations (KFIs) to a client, one with fees added and one without?

Answer:

No, although the rules do not prevent you from doing so.  

Q6: Has the content of the KFI changed?

Answer:

No, we have not amended the content of the KFI.

Q7: Now that the Initial Disclosure Document (IDD) is no longer a requirement do I still have to disclose the possibility of accessing FOS and the FSCS in writing?

Answer:

No. However, our normal complaint handling rules (in DISP) apply and these require you to tell borrowers they can access the FOS.

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