Mortgage Adviser Trainee

dunstonh

My own take on "compliance" is that I have to be able to justify the product that I have recommended at the time of the illustration being given. If questioned about it, I should be able to tell the Compliance Officer why one route was taken over another and to prove that the best product was recommended to the client as per their own requirements.
Why should that be such an issue?

Actually, the compliance officer should be able to tell from the documentation why one option was taken over another without having to speak with you. If clarification from you is required then the client file with the documentation is not good enough.

Despite consumers having this special memory ability that allows them to recall every detail of conversation that took place 10 years later, you have not. The only things that can be relied on is what is documented.

Mr_helpful

very true I agre 100% its just it aint quite as practical always as everyone would have you believe. Dont let me put you off though. I have been around for a long time so have known other systems and things have changed. Compliance is only partially about doing the job properly the rest is about covering ones backside against todays compensation culture.

shameless-about-money

The "compensation culture" applies to everything, though, not just to mortgages

shameless-about-money

dunstonh wrote: »

Actually, the compliance officer should be able to tell from the documentation why one option was taken over another without having to speak with you. If clarification from you is required then the client file with the documentation is not good enough.

Despite consumers having this special memory ability that allows them to recall every detail of conversation that took place 10 years later, you have not. The only things that can be relied on is what is documented.

I had expected that the documentation should speak for itself!

When I start with my Company and have had the Training, I will know more about it - then I might want to scream and run away in horror!

Mr_helpful

Shameless
You just have to read some of the posts about miss sold endowments to see what this compensation culture is up to. The memory as Dunston says is amazing but only one way. They can remember that they were told some things but then didnt know they were buying an investment that had some links to the stockmarket. they didnt read a single brochure or leaflet and forget they took the cheapest monthly option. Its becoming the same with mortgages. They look at the cost per month say of a tracker and buy because it is cheaper than a fixed rate and then when interest rates go up they complain that you didnt sell them a fixed rate. They turn down CI insurance and then when they get ill complain you never advised them. Make sure all is in writing and all is signed for and keep records for longer than you live.

Conrad

shameless-about-money wrote: »

How are they preying on the financially weak? If they are charging one fee for life then they will end up charging the customer a lot less than a high street bank, not more.

Clients will still pay the Bank / lenders fees each time AS WELL AS having paid the advisers fees on first sale.

Ive been around financial services nearly 20 years. Everything Im hearing reminds me of the sharky direct life assurance sales forces on the 1980s.

There will be masses of misselling.

ONE EXAMPLE:

Vulnerable client pays fee for life.
Comes back in one year for next mortgage as needs to move home.
Is told she doesnt have enough equity in view of bad creidt so cant be helped.


In other words she has massivley overpaid on a false basis.

Remember this post - it will happen.