Becoming a Mortgage Advisor - Any advice?

MortgageMamma

sesame dont even require the fact finds signing by clients for mortgages! how is an adviser meant to defend a claim? my firiend is with sesame and i keep telling him about this. They might have some good products and decent life rates but thwey lost 186 AR's in Q1 2007 so they must be doing something wrong (pg 43 mortgage strategy 9/4/07)

shameless-about-money

I investigated Sesame a few weeks ago and I wasn't impressed with them at all.

In fact, if memory serves me right I sent a cv and, to date, I have had no response from them.

dunstonh

Sesame would turn you down. They only consider experienced advisers or those joining an existing firm.

Remember they are not an employee as far as you are concerned. They are a network.

sesame dont even require the fact finds signing by clients for mortgages! how is an adviser meant to defend a claim?

So? Factfinds are not required to be signed. It doesnt make any difference whether you sign a factfind or not. There has never been a complaint upheld on the basis of a factfind not being signed and there is never likely to be either.

They might have some good products and decent life rates but thwey lost 186 AR's in Q1 2007 so they must be doing something wrong (pg 43 mortgage strategy 9/4/07)

Sesame have been pricing out inefficient companies (low earners and those with poor compliance) and there has been a trend of companies moving from Sesame to Sesame direct (something I am considering myself). They have also had 1450 advisers sign up to their multi-tied proposition (Misys plc trading statement Dec 06). A number of those came from existing members. The AR headcount is in decline for that reason but the overall headcount if you include sesame, sesame select and sesame direct is increasing.

I am not saying they are perfect. No network is and the grass is always greener... but I know advisers at other networks and Sesame offer more than they get. I used to whinge about Sesame on a number of things. Somethings do still fustrate at times. However, once I saw the cowboys at Personal Touch in action I realised things were not so bad. I also have a friend with a firm that took on 5 IFAs from other networks and they really suffered problems that would be unheard of at Sesame).

toonfish

We are members of Burns-Anderson - realistic charges and retention rates and a choice of services. Not sure if they are any "better" than other networks, but I'm happy with them.

They will also recruit on behalf of the members, by placing you with an established firm. Most want experienced advisers though.

MortgageMamma

Dunstonh, if an adviser does not get a fact find signed by a client, they could write anything in it themselves,which although most of us wouldnt dream of doing that there is still the odd wide boy that would

Secondly in the event of a complaint the client could dispute giving the information on the factfind, where does that leave an adviser without a signature?

Also, sesame do not insist on suitability letters signed by the client, for those that don't know a suitability letter is a report summarising the clients objective, their circumstances, the recommended product, the reasons for the recommendatoin and any warnings that are needed e.g. rates can go much higher than this. make sure you can pay your mortgage if rates rise.

Most networks insist these are signed as it is proof that the client has been fully advised and that they agree with the recommendation, the reasons behind it and all information is correct. If these are not signed by the client how can the adviser prove the client has had this and has been advised?

The way sesame mortgage markets work is the adviser only has to do a suitability letter AT ALL if its interest only or adverse credit or debt consolidation.

So they are promoting the "give them a key facts, have a little chat with them and sign them up" culture

That is not proper advice and I would be embarassed to treat my clients in that manner, not to mention constantly anxious that I had no defence in the event of a complaint.

I am with Pink and Pink insist things are done properly. It involves more work and administration on the advisers part but their compliance process is watertight in my view - which is why I went to them. Having experienced less than adequate compliance support at my last company I can only say that I'm glad I have to work to such high standards

I'm sorry dunstonh but I've had an inside view on the running of sesame mortgage markets and they are not doing half of what they should be in my opinion - I wouldnt touch them with a bargepole

toonfish

MortgageMamma wrote: »

Dunstonh, if an adviser does not get a fact find signed by a client, they could write anything in it themselves,which although most of us wouldnt dream of doing that there is still the odd wide boy that would

My clients don't generally see the factfind - let alone sign it. It is simply a form for gathering information. As long as I have signed it my network are satisfied. There would be nothing to prevent the factfind being altered after signature anyway.

MortgageMamma wrote: »

Secondly in the event of a complaint the client could dispute giving the information on the factfind, where does that leave an adviser without a signature?

It makes no difference in my opinion. The letter of recommendation is the key document

MortgageMamma wrote: »

That is not proper advice and I would be embarassed to treat my clients in that manner, not to mention constantly anxious that I had no defence in the event of a complaint.

Why would not having a factfind signed lead you to give bad advice? That's all someone can complain about.

MortgageMamma wrote: »

Having experienced less than adequate compliance support at my last company I can only say that I'm glad I have to work to such high standards

We work to a high ethical standard, just by following the rules

Mr_helpful

The fact find is not that important as far as signing. the record of stupidity is and this would be the main basis for defending against a complaint.

MortgageMamma

Well I'd hate to be in your shoes in the event of a complaint. There is a reason networks ask for signed fact finds. Cutting corners is just exposing yourself. Its good practice to let a client see a factfind, that way they can add or amend anything necessary. Never mind I suppose its only natural advisers all work to different standards.

shameless-about-money

I am going to put my tuppenceworth in here.

To my way of thinking the factfind actually shows that the MA looked at or for the correct information to ascertain the financial position of the client.

This surely MUST be done as an absolute necessity. I would agree that the client should sign it.

spurs_nut

I've just had our factfind for mortgage protection/life assurance through the post to sign and send back to our broker.

Surely this is necessary?

Whats to stop me in a few months time claiming I'd been missold a policy and asking for a refund if there was nothing signed and no proof.
Or what's to stop the broker from misselling because the client doesn't know exactly what they're getting. Surely it's there for the protection of both parties.

At least with this fact find I know exactly what I'm getting and understand it all.

Sounds like a must to me.