Regulatory Requirement?

CeeBeeGB

Hello,

We've had a mortgage with HSBC approved. However, we're unable to sign the paperwork as the mortgage advisor who processed our application is on holiday. Apparently, it can only be her who is present when we go to the branch to sign, a colleague can't stand in for her. She informed us that this is to meet regulatory requirements.

Is this correct? I'm very surprised that there is no provision to prevent delays for customers when advisors are on holiday.

Crashandburn

'the paperwork'

Not too sure what you mean. The mortgage offer? The mortgage application?

CeeBeeGB

Sorry - the offer.

chewback

Absolute rubbish. She probably is the only one who can sell you life insurances in branch.

dunstonh

It is not rubbish. They are correct. There is probably only a limited number of staff in the branch who are authorised to do it. Smaller branches may only have one. Very small branches may even share one between them. Mortgage advice is a regulated activity and requires specific requirements and permissions that only certain staff will have.

Jimbo1976

Dunston, whilst giving mortgage advice is a regulated activity, I am not sure why HSBC needs the applicants to sign their offer letter in the branch. Witnessing an offer letter being signed in a branch is not a "regulated activity"

The applicants solicitor will be the person who needs to see a signed copy of the mortgage offer. Once they are happy that everything has been signed correctly then they request the funds from HSBC.

I think chewback is right, its just an opportunity for the adviser to cross sell.

dunstonh

Dunston, whilst giving mortgage advice is a regulated activity, I am not sure why HSBC needs the applicants to sign their offer letter in the branch. Witnessing an offer letter being signed in a branch is not a "regulated activity"

Most likely because no other staff member has a clue what is or isnt needed. There are many things I do that dont fall under regulatory remit but it doesnt mean my unregulated colleagues would know what to do.

Jimbo1976

But the OP was told, it was for "regulatory requirements" not because other staff weren't aware what needed to be done.

sockpuppet

Some of the lenders we use will send out a form along with the offer for the clients to sign once they have read through the offer and are happy to proceed.
Once signed they post it back to the lender.
Other lenders dont have anything to sign at all, so i cant see how it can be 'regulatory'

As others have said, it is probably just an opportunity to cross sell some extra insurance etc or it could be just so that if the client has any questions they can ask the advisor there and then and she would be in a position to answer any queries before they dign it to accept.

If you have read it through and are happy with it all then I cant see why you cannot sign it in branch and proceed.

It is probably just a procedural thing that HSBC do. We call our clients once they have the offer and if they want us to go through it with them we will, but generally people are quite happy - but again that is not something we 'have' to do

Thrugelmir

By signing the offer with an authorised bank official. Then is a way of blocking any potential customer complaint in the future. As the advisor will ask scripted questions during the meeting. That will absolve the bank of liability.

Let_Us_See

Thrugelmir wrote: »

By signing the offer with an authorised bank official. Then is a way of blocking any potential customer complaint in the future. As the advisor will ask scripted questions during the meeting. That will absolve the bank of liability.

I hope that was written as an humourous touch to the end of another busy week? A client signing a form does not prevent a provider from liability. If only!!!! Think of endowments and PPI which were all signed and accepted by applicants, but that did not prevent liability claims amounting to billions of pounds. In this litigious society a client's signature counts for absolutely nothing.

PS. HSBC adviser trying it on and will purely use as a cross-selling opportunity.