Lending, advice and insurance rules: applying MCOB, ICOBS and consumer credit law to client cases

ASEW Learning Outcome 3 is about applying the rulebooks to a client file. Questions rarely ask "what does MCOB 11.6.18R say?". They ask what the adviser or lender must do next for this client. This note maps each product to its rulebook, sets out the rules that come up most often, and works through a case that uses all of them. It assumes you have already met these rules in FRE2, MRT1 and MRT2. In CeMAP® 3 you combine them.

1. Which rulebook applies?

Product or activity	Main rules
Residential first or second charge mortgage, lifetime mortgage, RIO	MCOB (regulated mortgage contract)
Home reversion plan; home purchase plan (Islamic)	MCOB (regulated home reversion or home purchase plan)
Consumer buy-to-let	Mortgage Credit Directive Order 2015, Part 3
Business-purpose buy-to-let	Not a regulated mortgage contract (RAO article 61A)
Unsecured loans, cards, overdrafts	Consumer Credit Act 1974 (as amended in 2006) and the FCA's consumer credit rules
Term assurance, critical illness, income protection, ASU/MPPI, buildings and contents	ICOBS (insurance conduct rules)