CAS and approved person?...Please help to understand!

MARVIN_2

Hello Everyone!
I turn to the board as I just new qualified adviser and been offered position on self-employed basic. I will be working for them on commission only basis until the Company "sign me off"
In regards of this I do not really understand what does it mean exactly CAS (Competetent Adviser Status)? Shall I be only qualified and experienced to gain this status?
What is exact procedure and meaning of "signing off"?
Who is the issuer of this status: company or FSA? And how it would appear in FSA register?
What is the difference between approved person status (which as I understand given oly after passing Fit and proper person test) and CAS status?
Also as Appointed repreentative of the company on SE status do I really have to be appeared on the FSA web site? I just checked this company on FSA register and found out that some of the MA registered on the FSA with the company reference number and some - NOT...why they appeared differently?
Thanks for your time and sorry for may be stupid questions - I just want to make sure I will take a right step.

UK007BullDog

Not another one! Not wanting to be rude just commenting on the self employed bit.

I can tell you what you need to do. Find an EMPLOYED job with a bank, building society or estate agent. There you will get training and do not need to worry about your status.

All you currently have is your CeMAP, its good but worth nothing until you have Approved person status, which means you can sit in front of people selling mortgages and protection products. Once you have that status you need to work your way up the competent status and you only have 2 years to reach it.

You will need to pass exams and such before you are in front of customers so that can take 1 to 3 months depending how quick they move, then once you start selling you will probably have to wait up to 3 months or longer to get paid your commission minus the fees they might charge you. So plan in 6 very tight months until you get into the flow.

Personally I would try Abbey, Natwest, Nationwide and Halifax to get a foot into the door as you will get much better training and you get paid from day one.

Also try www.cherryplc.co.uk where the brokers hang out.

homer_j_3

MARVIN wrote: »

Hello Everyone!
I turn to the board as I just new qualified adviser and been offered position on self-employed basic.

Welcome to the board and well done on getting yourself qualified. I would suggest that you read the code of conduct for advisers before you start actively contributing.

I will be working for them on commission only basis until the Company "sign me off"

Do you understand that it is unlikely you will receive any form of payment for at least 3 months in this capacity. As you are new, you may not really appreciate this.

In regards of this I do not really understand what does it mean exactly CAS (Competetent Adviser Status)? Shall I be only qualified and experienced to gain this status?
What is exact procedure and meaning of "signing off"?

CAS means that you have proven that you can operate within the rules that the industry and the regulations set. Making sure your advice is correct etc and are competent to do your job.

You will have to demonstrate understanding of product knowledge and knowledge of Data Protection and Money Laundering etc.

You are already qualified and you will only be experienced once you have you have gained this through CPD (continued professional development)

Signing off, this is the process of achieving CAS and that you are OK to be let loose on the public without somebody watching and sitting in appointments with you. It is normal for all advisers to go through some form of this when they start with a new company.

Who is the issuer of this status: company or FSA? And how it would appear in FSA register?

The company issue this.

What is the difference between approved person status (which as I understand given oly after passing Fit and proper person test) and CAS status?

An Approved Person is someone who is approved by the FSA to carry out a controlled function, like a Director. I doubt you would be an approved person unless you were given a position which had some massive bearing/influence on how the company operated.

Also as Appointed repreentative of the company on SE status do I really have to be appeared on the FSA web site? I just checked this company on FSA register and found out that some of the MA registered on the FSA with the company reference number and some - NOT...why they appeared differently?

That is something that you will need to check with the company that you are with.

Thanks for your time and sorry for may be stupid questions - I just want to make sure I will take a right step.

No questions are stupid if you do not know the answer.

homer_j_3

UK007BullDog wrote: »

Not another one!

I can tell you what you need to do. Find an EMPLOYED job with a bank, building society or estate agent. There you will get training and do not need to worry about your status.

All you currently have is your CeMAP, its good but worth nothing until you have Approved person status, which means you can sit in front of people selling mortgages and protection products. Once you have that status you need to work your way up the competent status and you only have 2 years to reach it.

You will need to pass exams and such before you are in front of customers so that can take 1 to 3 months depending how quick they move, then once you start selling you will probably have to wait up to 3 months or longer to get paid your commission minus the fees they might charge you. So plan in 6 very tight months until you get into the flow.

Personally I would try Abbey, Natwest, Nationwide and Halifax to get a foot into the door as you will get much better training and you get paid from day one.

I was getting a complex about this, hence why I have not repeated your advice! I don't think its a great 1st step into the industry but sadly the one that many only seem to get.

MARVIN_2

UK007BullDog wrote: »

Not another one!

I can tell you what you need to do. Find an EMPLOYED job with a bank, building society or estate agent. There you will get training and do not need to worry about your status.

Personally I would try Abbey, Natwest, Nationwide and Halifax to get a foot into the door as you will get much better training and you get paid from day one.

Thanks for the advice, I really appreciate your points, but I have reasons to choose particular company: one of them is that they a branch abroad where I am planning to reside.

UK007BullDog

Homer-J, I Could not have said it any better :T

Well, I did not do a great job above anyway. Must be tired and time to go to bed.

BTW and Offtopic, is MortgageMamma on holiday or something? Have not seen her about last few days.

homer_j_3

Good to hear that you have reasons.

What you have to realise is that the reason,we as experienced advisers, caution new people into the industry to ensure they understand the implications.

Without a wage for a minimum of 3 months (more likely to be 4-6) where you do not get a re-mortgage or 2 very quickly then you could put yourself in a financial position that you needn't have been had you got some experience in a paid environment first.

You also need to be very very careful of any contracts that you sign as they are often very weighted in the favour of the company you work for and very restrictive for you the adviser.

It is not uncommon for companies to be slow at paying and no matter how much they say its not their fault, the contracts will often have no penalties for failing to pay you on time.

I do not know what you did previously but no matter what aptitude you have at picking new stuff up, this job takes years to perfect and get properly competent. Not being negative but its something you need to consider.

I would fully research this company, get a solicitor to fully explain any contracts to you and ensure that you are not left in a position where you are earning no money.

Leads are provided? If yes, I guarantee you will be competing against 10 other advisers and if not, have you thought about how you get these.

A lot can be said for trusting a brand. Is this company a big brand, if not any uncertainty about your ability or skills will almost work against you more than if you had a brand behind you that was trusted.

You proceed with caution and do not trust anybody's promises and ensure that you overlook important factors just because they have a branch in the country you want to reside.

homer_j_3

UK007BullDog wrote: »

Homer-J, I Could not have said it any better :T

Well, I did not do a great job above anyway. Must be tired and time to go to bed.

BTW and Offtopic, is MortgageMamma on holiday or something? Have not seen her about last few days.

She has been snowed under and I believe there was a family occasion tonight. She has one busy life and I do not envy her for all that she has to do.

MARVIN_2

homer_j wrote: »

Welcome to the board and well done on getting yourself qualified.
No questions are stupid if you do not know the answer.

Thank you very much :T
So approved person issued by each company separately and is that only verbal official approval?
As I understood, to become an appointed representative does not necessary mean to be approved or registered with the FSA directly.
When I asked director that question - he has told that I will be appointed representative straight after joining the company.
Does this mean I will appear on FSA register as appointed representative ASAP? And what kind of liabilities I will be carrying even if under company IMD?
Thanks again.

homer_j_3

You will not be an approved person as far as I can see. An Appointed Representative should show on FSA register as far as I am aware. An AR is someone that has been OK'd by a firm who is Directly Authorised by the FSA.

For example. Sesame (a mortgage network) will have DA status with FSA. If you were OK'd through CAS and the Fit and Proper checks then they would give you AR status (This is very broad brush by the way).

If you went to the Network and want to set up as a Ltd Company under them for example, you would be classed as a Director and there for you would be an approved person and AR.

You need to fully read your agreement with this firm to understand your liabilities as there will be generic ones that are common to all advisers and specific ones which are unique to the company you are entering into business with.

Your lack of knowledge on these things are ringing alarm bells that you are going to walk into something and not realise fully the implications of such.

MARVIN_2

homer_j wrote: »

Without a wage for a minimum of 3 months (more likely to be 4-6) where you do not get a re-mortgage or 2 very quickly then you could put yourself in a financial position that you needn't have been had you got some experience in a paid environment first.
Leads are provided? If yes, I guarantee you will be competing against 10 other advisers and if not, have you thought about how you get these.
.

They promised me payments around 1 K per month which would be dedactable from future commissions.
Leads...yes, again according to them i will have them from their estate agencies etc... as it is a big company with one of the directions -mortgages.