Trainee Mortgage Advisor and Mortgage Manager???

MARVIN_2

Hello guys

I am new in this chat the same as in mortgage industry.
Having passed CeMAP 2 I have been offered a job as Mortgage Manager, but several things look suspicious from my point of view.

First of all
Why they want me to apply for approval from the FSA, having two other advisors in the company which have CeMAP qualification but not registered at all (as I have already checked FSA register)?
Secondly. Is it really obligation for an advisor to be approved person or it is only related to controlling/governing functions in the business?
What is exactly mean mortgage manager? Is it the same as mortgage advisor, as I have told them several times that I am looking only for trainee mortgage advisor position?

The money, most important question, 18 K gross this amount including overtimes and Saturdays. No commission basis.

Thanks for your attention to my questions.

dunstonh

Why they want me to apply for approval from the FSA, having two other advisors in the company which have CeMAP qualification but not registered at all (as I have already checked FSA register)?

Mortgage advisers dont appear on the FSA register. They will be on the FSA list but they just wont appear on the register

Secondly. Is it really obligation for an advisor to be approved person or it is only related to controlling/governing functions in the business?

You need to have FSA authorisation to give advice.

What is exactly mean mortgage manager? Is it the same as mortgage advisor, as I have told them several times that I am looking only for trainee mortgage advisor position?

A mortgage manager sounds more like a tied mortgage rep or limited panel rep. Its the sort of title you expect from a bank where everyone is a manager of something Tied reps tend to have titles like that whereas whole of market advisers will tend to use the mortgage adviser tag.

The role of a tied mortgage rep is different to a real whole or market adviser. Whilst both arrange mortgages, the tied rep will usually have sales targets, be heavily pushed on cross sales and wont be able to recommend mortgages to everyone as they only have their own products. The whole of market mortgage adviser will be looking across the providers and can usually find a deal for almost anyone. Whole of market advisers tend not to be linked to salesforces (although there are some salesforces) and dont work under the salesforce pressure. They also tend to get better remuneration than the tied rep.

The money, most important question, 18 K gross this amount including overtimes and Saturdays. No commission basis.

It sounds like the level you would expect when no commission is payable. However, do note that if this is a bank or salesforce role, that the pay is usually based on performance as is the liklihood staying in the job. Most of these contracts allow you to be sacked due to poor performance (i.e. not hitting sales targets).

To put that in perspective, I wouldnt employ a mortgage adviser earning less than 50k a year or an IFA earning less than 100k. If you are just starting out though, it is a good starting wage.

MARVIN_2

dunstonh wrote:

You need to have FSA authorisation to give advice.

:T

Thank you for your full answer.
Does it mean that even trainee mortgage advisor have to be registered with FSA?
I looked through IFS study materials and could not find anything related to such requirements except of: “Any person working in an authorised firm who carries out a controlled function, must be approved by the FSA”.
But if mortgage advisor does not carry any controlled function? And what is the significant difference between advisor and broker?

Thanks.

dunstonh

I looked through IFS study materials and could not find anything related to such requirements except of: “Any person working in an authorised firm who carries out a controlled function, must be approved by the FSA”.

I think this will answer your questions.

http://www.fsa.gov.uk/pages/Doing/small_firms/mortgage/Factsheets/factsheet8.pdf

and http://www.fsa.gov.uk/Pages/doing/regulated/notify/reps/index.shtml

And what is the significant difference between advisor and broker?

Nothing. Its just a variation in the name. However, a tied mortgage adviser would not be allowed to use the word "broker" in their title.

The difference is within your scope of authority to either be a tied adviser, panel or whole or market. All three areas can use the word "adviser".

LisaT186

Or these may help understand a controlled function:

http://www.fsa.gov.uk/pubs/other/factsheet_approved.pdf

http://www.fsa.gov.uk/pubs/policy/psreg_annexh.pdf (chapter 10 page 109)

I'm a broker but not an approved person. The senior partners who are the main advisers are the approved persons.

MARVIN_2

Thank to everyone, your answers really helpful! :j
Only one question left.
With CeMAP1&2 does it really makes sense to work for 18 K (excluding any commissions) Monday to Saturday from 9 to 18.00?
Or shall I take additional time and after obtaining full CeMAP will make more sense start researching for more attractive package?

Thanks.

LisaT186

I started as a self-employed broker and to be honest really didn't have the experience, knowledge or training to suceed. Hence I didn't earn any money!!! I then decided to work for a high street bank for 4 years and really get to grips with mortgages and received some brilliant training. As a broker again now it stood me in really good stead. The bank I worked for had a salary scale of £17,000 to £25,000 for a mortgage advisor dependant on qualifications and experience. It was 5.5 days a week and there were bonuses on offer, but they weren't realistically achievable so I never relied on them. I'd say that £18,000 is not a bad starting salary but do choose a company that can offer you support and training whether they are a bank or a broker. Good Luck

regularsaver1

Sounds rare to be offered a job without CeMap 1, 2 and 3 - but they have. I understand you have 1 & 2 - but not 3

are they a small firm?

TEDDYRUKSPIN

Ha. Big firm. And yes! You have to be FSA regulated if your giving advice. Besides the FSA is clamping down on mortgage arrangers who give non-advice mortgages. Being honest, you have to advise with some sort to offer what the customer needs.

The position you have mentioned is a new position.

easyas123_3

I would just like to tell you guys about a company that I had a great experience with, check them out at http://www.lvfin.com

MARVIN_2

regularsaver1 wrote:

Sounds rare to be offered a job without CeMap 1, 2 and 3 - but they have

are they a small firm?

As I mentioned before I have CeMAP1 and 2.
The firm is 1 year old but growing, they just opened new brunch.
This is the answer I have from prospective employer:
Let me clarify:

The position of a Mortgage Manager with "........... Mortgages" does not require you to register with the FSA. You would be working under the umbrella status of the company which is regulated with the FSA.

You are not required to be approved by the FSA, because you are not yet a qualified and competent Mortgage Advisor. To be a qualified Advisor you need to pass all 3 stages of the CeMap exams, and to be a competent Mortgage Advisor you will be required to fully complete the T&C procedure (?) laid down by the FSA and signed off or approved or deemed competent by an FSA authorised person / company (that should have been responsible for your competence training).

As a Mortgage Manager we would help you to pass your CeMap exams and offer the training to help you towards become a qualified Mortgage Advisor. Competency will depend on your professional development.

Even as a qualified Mortgage Advisor you will not be registered directly with the FSA. Therefore, you will not have your own individual FSA number. If you don't have your own individual FSA number you do not require your own individual professional indemnity insurance to cover mistakes/liabilities you refer to in your email.

Every employee working at "......... Mortgages " is covered by Public Liability Insurance, Employers Liability Insurance, Business Liability Insurance and Professional Indemnity Insurance taken out on the company as a whole to cover all possible liabilities.

While working in our organisation, "........ Mortgages" which is authorised and regulated by the FSA, all your activities and work will be strictly supervised and approved by a qualified Mortgage Advisor who will be your training supervisor. This implies that you will not approve or sign any documents / correspondence with lenders on behalf of the company.

As for the working hours, as I explained the hours are from 9am - 6pm from Monday - Saturday. Overtimes outside the working hours should be discussed and agreed by both the company and you.


So what do you think about this offer?