View more on these topics

Records should be kept for six years

Mortgage brokers have been warned to keep client business records for at least six years in anticipation of consumer complaints or civil claims.

Speaking at the Preferred Mortgages seminar on regulatory options in London last week, Chris Cummings, director of AMI, Bill Warren, network director at Complete Mortgage and Loan Services and Philip Ryley, head of compliance at TLT Solicitors, highlighted the need for brokers to keep their records for a minimum of six years rather than the compulsory three years set out by the FSA.

Warren told the audience: “Brokers should retain records to safeguard themselves. Considering a civil claim can be made up to 15 years after the advice is given keeping records for six years should be the absolute minimum. In light of the self-cert scandal this cannot be emphasised too strongly.”

And Ryley added: “Brokers should understand that these records are not just a way to prove to the FSA that they are being compliant – they should keep them for their own purposes and peace of mind too.”

But some say any brokers who do not already maintain their records for this length of time are walking a precarious tightrope.

John Stewart, director of Essex-based PMI Independent Financial Advisers, says: “Brokers should keep their records for ever, never mind six years, especially with so many complaints about endowments. Ideally records should be scanned into a computer. It can be costly and time-consuming but it cuts the storage load. It&#39s too dangerous to dispose of everything.”

Recommended

Personal debt balloons to over £5,000 each

Unsecured personal debt has grown by almost 50% since 1997 and now stands at £5,330 per person, data from the Office of National Statistics has revealed. The data has raised great concern with incomes growing by only 23% over the same period. Personal debt has grown twice as fast as incomes since 1997 and has […]

Ian Menzies-Gow takes the chair

Neil Hannah is stepping down as chairman of the Derbyshire and will be replaced by current deputy-chairman Ian Menzies-Gow. Hannah retired last month having joined the Derbyshire&#39s board of directors in 1992. He became deputy-chairman in 1998 and chairman the following year. A fellow of the Royal Institution of Chartered Surveyors, he has practised for […]

Authorisation benefits for GISC members

Members in good standing of the General Insurance Standards Council will have a smoother journey through the authorisation process, the FSA announced yesterday. Sarah Wilson, director of the high street firms division, has confirmed that applications from GISC members in good standing will receive “a level of scrutiny which reflects the standards set by GISC”. […]

Let&#39s take this opportunity to change our image

From Stephen YatesMy, my! What are we doing? The mortgage industry appears to have gone into self-destruct mode. We have the Financial Services Authority drafting consultation forests and plotting the demise of the small broker. This much we have come to expect. But now we learn of three advisers being suspended over &#39self-create my income&#39 […]

Auto-enrolment: tips for employers

The Pensions Regulator (TPR) has released advice on communications for employers, including three tips to help you with your auto-enrolment duties. 1. Allow enough time to select your pension schemeIt’s recommended that you start to prepare for auto-enrolment at least 12 months in advance of your staging date; additionally, give yourself time to choose the […]

Newsletter

News and expert analysis straight to your inbox

Sign up