The guide specifies what actions brokers must take now to ensure they can continue to deal with their clients after M Day.
Justine Tomlinson, Mortgage Next marketing director, says: “It has become clear that a number of brokers are not aware they must obtain their clients express permission if they want to continue dealing with them after M Day. FSA regulations specifically ban unsolicited real time promotions such as a broker phoning a client – unless the broker can prove they have an existing client relationship and the client expects to receive such calls. In reality, this means brokers need to obtain written permission now, if they want to contact their clients after October 31.”
The FSA has takes the view that a broker helping to arrange a mortgage for a client in the past, does not necessarily constitute an ongoing relationship. The onus is on brokers to prove that clients are happy to be contacted in the future.
The Mortgage Next guide provides helpful advice about the FSA rules, including a draft letter which can be sent by brokers to their clients with a set of revised terms of business.
Tomlinson says: “Ensuring client relationships are put on the right footing is not difficult, if you understand the rules. Our guide has been designed to make the subject simple to understand and the issues easy to resolve. Good client relationship management not only keeps brokers on the right side of the law, but makes sound commercial sense. We hope our guide will be helpful.”