Intermediaries who do not fully understand the FSA's rules for mortgage advice will face harsher penalties than ever before after Mortgage Day, The Association of Mortgage Intermediaries has warned.
From October 31, intermediaries offering mortgage advice must be fully aware of the new FSA requirements. These requirements go far beyond those that currently exist under the Mortgage Code and firms that fail to implement the changes in time will face enforcement actions ranging from fines to removal from the industry.
To help identify the key areas of change in the sale process, AMI has produced a factsheet for members detailing the many differences between the MCCB and the FSA requirements. Factsheet 12: guide to a compliant sales process provides an outline for firms to use in restructuring their practices along FSA lines.
The factsheet covers the key component parts of the advice process, the understanding of which firms must have come to terms with by the October handover. It includes: financial promotions; initial disclosure and the IDD; the advice process; affordability and suitability; pre-application disclosure; and record keeping.
Chris Cummings, director of AMI says: “Mortgage intermediaries perform an invaluable service for their clients and should be looking to implement the new rules into what they do best, which is providing sound advice for their clients. This factsheet highlights the key points to help them to continue to do this.”