can a member of your family be a independent finacial adviser?

CKhalvashi

tigger74 wrote: »

just wanted to know what people think to this subject

Say a close member of your family was an idependent finacial adviser and were preparing mortgage application papers and being maybe creative with the truth on your behalf.

As in they knew you had the last pay slip and were going on maternity for 12mnths

where would they stand if the banks knew?
si.

Legally, they are not to know someone is going on maternity unless told.

I’d have thought fraud would have been committed by the applicant for not telling IFA.

I know that in the past when OH has gone on MP, we’ve kept her salary the same throughout to ensure that things are being done, which wasn’t a pain in the neck as it reduced the overall dividend, not our main income.

Every circumstance is unique, and we don’t know if the person involved would keep the same pay, or go onto SMP.

tigger74

GMS wrote: »

If you are looking for ways to get around affordability and criteria you will not get any help here.

I would never ask for that!!!:mad:
But people ask questions for help and advice!!! so think about your reply and post again. im asking to see if my views are correct

tigger74

my main question is can a member of your family be independent when advising you on finacial matters.?

and can they be independent when acting as the broker to a mortgage or loan or any other sector while they earn sales on this?

dunstonh

just a thought on creative with the truth, if IFA earn on sales then they would push the boundarys to earn more?

IFAs dont earn more on sales as a mortgage adviser working on independent basis MUST be fee basis and not commission.

There has been mortgage fraud but the problem is that the borrower is usually equally culpable and if you complain you run the risk of the advising firm reporting you to the lender for committing mortgage fraud. It is a fraud that takes two to tango. Getting blacklisted with all lenders on the small chance your complaint will succeed (and it is just a small chance as the volume of complaints are just not there) is usually not worth the effort.

its a bit like Chris Huhn's estranged wife who decided to get back on her husband by saying she took his points thinking it would kill his career as an MP. It may well do but she has also found herself being prosecuted which she never expected.

my main question is can a member of your family be independent when advising you on finacial matters.?

Yes if they are operating on independent basis. If they are not operating on independent basis then its possible they may not be.

GMS

tigger74 wrote: »

mmmmm, say there is a self employed person desperate to get a mortgage and his sister was working for a broker company and helped him with mortgage but the earns were not true or over inflated?

You asked the question above and got the answer. Not sure what you are getting at.

tigger74

GMS wrote: »

You asked the question above and got the answer. Not sure what you are getting at.

I didnt like your tone and implication of what you think i wanted!!

Best leave it there, the self employed was just an example!!.

magpiecottage

I cannot see why the OP is asking these questions if they are hypothetical.

However, FOS commented on discrimination back in 2004 and said "It is indirect discrimination if a requirement is applied equally to men and women but adversely affects more women than men, for instance if a mortgage provider lends only to people who work full-time."

I think, therefore that the adviser is between a rock and a hard place. If he refuses to submit the application he could be accused of fraud. If he does not then he could be accused of sexual discrimination.

It is a dilemma none of my client advisers have come to me with but if they did, I think the adviser's safest approach, from their point of view, would be to write a letter to the borrower (even if it was a family member) explaining that the loan needed them to make repayments and they would need to satisfy themselves that their income throughout the maternity leave was sufficient to do so.

tigger74

magpiecottage wrote: »

I cannot see why the OP is asking these questions if they are hypothetical.

However, FOS commented on discrimination back in 2004 and said "It is indirect discrimination if a requirement is applied equally to men and women but adversely affects more women than men, for instance if a mortgage provider lends only to people who work full-time."

I think, therefore that the adviser is between a rock and a hard place. If he refuses to submit the application he could be accused of fraud. If he does not then he could be accused of sexual discrimination.

It is a dilemma none of my client advisers have come to me with but if they did, I think the adviser's safest approach, from their point of view, would be to write a letter to the borrower (even if it was a family member) explaining that the loan needed them to make repayments and they would need to satisfy themselves that their income throughout the maternity leave was sufficient to do so.

Thank you for the reply i think that is the first diplomatic and very much professional reply

Thrugelmir

tigger74 wrote: »

my main question is can a member of your family be independent when advising you on finacial matters.?

Yes, if they act in a professional manner. If they are privy to certain information they should take this into account when conducting their business, family or not.

Much in the same way an accountant or solicitor would work.

Business is based on trust. Without trust the relationship is worthless.

Oneday77

When we looked at a mortgage while OH is expecting, all they said was they expect a letter to say she will go back to work after her Mat leave. As far as I know mortgage applications only ask if you have any current dependants. An unborn baby isn't one as it could be more than one or something could happen, it could go for adoption or surrogacy.
I would love to see any mortgage provider survive the case though the EU human rights if a mortgage was rejected due to being of child baring capabilities and age.

As for the theoretical questions then any over embellishments can be fraudulent and punishable. The cloak and dagger nature has tones of a friend of a friend situation or oh rats I may have screwed up how bad have I've been. Sorry if you think I have a tone myself but we tend to answer questions here not theorise and use crystal balls.