From Andrew GreenIt’s about time to set the record straight: if a valuation fee is paid to the broker or packager, permission to hold client money is required. The statements below are taken directly from the FSA’s website. Q: When is money received and held by mortgage intermediaries considered to be client money? A: Client money is money of any currency which, in the course of carrying on mortgage mediation activity, an intermediary receives and holds on behalf of a client, either in a bank account or in the form of cash. Client money would include, for example, money received and held to pay a valuation or survey fee to a valuer or surveyor. However, if an intermediary simply receives a cheque made payable to a third party valuer or surveyor, that will not be client money. Finally, money that is due and payable to an intermediary – for example, an administration or brokerage fee – is not client money. Q: What does a mortgage intermediary need to be able to hold client money? A: A mortgage intermediary that wants to hold client money must have permission from us to hold client money as part of its Part IV Permission as set out in AUTH 3.14; meet the higher capital requirements set out in PRU 9.3.30R; and hold the higher PII excess required by PRU 9.2.18R. (Where the firm seeks to have a higher PII excess than set out in PRU 9.2.18R, there is an additional capital requirement as well – see PRU 9.2.21R and 9.2.22R). I trust this clears up the issue.
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Those who think the regulator’s TCF initiative is insulting to the integrity of the insurance industry have not experienced the impact when things go wrong, says Richard Griffiths
We know what it takes to run a successful auto-enrolment project in the retail industry. We are automatically there for some of the world’s best-known retailers at every stage of the process. Take a look at what we have done for our client House of Fraser.
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