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

UK007BullDog

MARVIN wrote: »

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.

That sounds very dangerous, this means if you ever leave them they will hold back your pipeline if you have not paid back the money you own. What about the training? Is it free or will they expect something back if you leave before a certain date.

Going by my experience any company which has things like you told us I would keep a wide berth of. they are the ones that tie you down so hard that you cannot leave because of the financial ties.

You need to speak to a few more brokers about your situation. go to www.Cherryplc.co.uk and ask there about the company and what advisers who worked for them think about the company. Just because they left does not mean they will rubbish them.

homer_j_3

I do not want to go into depth about how your are remunerated but sense check earning potentials. If they say you will earn x amount - what is that based on. Is it realistic when you look at the variables like:

Your ability
Your experience
Your competition
Your proposition to clients over everybody else.

The fact is that your naivety to the industry will give you trust in peoples words and blinkered vision with OTE's that will allow you to be rich beyond your wildest dreams.

Get things explained, get legal opinions on the contract especially to repaying them if you are fired or leave.

Do you realise that the FSA do not protect you from employers and that they can make your life very difficult to move to future jobs if you do not fully comply with their contracts.

Once again, not trying to scare but trying to give you an unbiased view.

A great example of what I mean.

If I said if you write 4 cases per month you will earn 50k per year, you would think great - that is simple.

What you are not told is that to get that you need for a minimum of 4 of these to actually complete and pay a commission to get you that income.

Writing a case and completing a case are not the same. House purchases falling through, change of minds, lender declines etc... So to complete on 4 cases you may actually need to write 8.

MARVIN_2

homer_j wrote: »

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.

You opened my blind eyes to many questions. Now I see that it is not really necessary to be registered with the FSA and of course i should not obligatory be given AR status.

homer_j_3

If the comapny you are interest in are going to make you an AR, you should be named as an AR under their company registration with the FSA.

I for example are employed by an Estate Agency who are Directly Authorised by the FSA. I am not a AR. That will confuse you I bet lol.

I think you have some good questions and a trip to cherry might give you some good pointers

MARVIN_2

homer_j wrote: »

If the comapny you are interest in are going to make you an AR, you should be named as an AR under their company registration with the FSA.

I for example are employed by an Estate Agency who are Directly Authorised by the FSA. I am not a AR. That will confuse you I bet lol.

I think you have some good questions and a trip to cherry might give you some good pointers

Company - authorised.
approved person - director + 1 more MA.
All other people under company number and in AR register.
I thought the company which has direct authorisation from FSA can only issue the appointed representative status... in such case they taking all liability other words I will be working under their cup. In such case it should not be direct relationship between me and FSA? Tell me if I am wrong...

MARVIN_2

Other question just come up:
What is the official process in becoming AR? Or it is just up to the company discretion?

dunstonh

They promised me payments around 1 K per month which would be dedactable from future commissions.

ALARM BELLS!!!

They are going to put you in a position of financial liaiblity that if you fail and are dismissed or leave, that financial liability will have to be repaid before you can get employment in financial services again. Its a model used by a lot of the old failed salesforces which saw a number of new advisers get into debt and also go on to give bad advice due to desperation to earn money. Some also had judgements raised against them to. Others couldnt leave as they had the liaiblity but ended up digging deeper holes as they got further into debt.

Will you also be responsible for your costs in this period? I am assuming you mean investment adviser in this thread. Therefore, you will have have the FSA, FSCS levies etc which come to almost £3k this year per person. The firm may also charge other costs to you as well, such as software and support.

What is the official process in becoming AR? Or it is just up to the company discretion?

The network or firm has a process which is approved by the FSA. Effectively, they are doing the job of the FSA and the FSA review the firms processes periodically to make sure it is being done correctly. A decent network will not be intrusive but provide support services. However, some are almost run like salesforces so it really depends on the firms involved. Plus you have the different business models of the firms themselves. A firm may have the network provide the "supervisor" or they may provide it themselves and the network then make sure the supervisor is competent.

Although a firm takes on compliance responsibility for you, you have to be authorised by the FSA for the control functions you are seeking.

If you want to operate in the UK you will appear on the FSA register in one form or another. Only mortgage advisers and employees that do not hold control functions dont appear on the register. That may well change in future if mortgages move from light touch to full regulation.

MARVIN_2

ALARM BELLS!!!

They are going to put you in a position of financial liaiblity that if you fail and are dismissed or leave, that financial liability will have to be repaid before you can get employment in financial services again. Its a model used by a lot of the old failed salesforces which saw a number of new advisers get into debt and also go on to give bad advice due to desperation to earn money. Some also had judgements raised against them to. Others couldnt leave as they had the liaiblity but ended up digging deeper holes as they got further into debt.

Yes you right.
Another fact a bit suspicious. They charge around £ 400 from the client + 1% on complition which I think not really reasonable and competitive price.

Although a firm takes on compliance responsibility for you, you have to be authorised by the FSA for the control functions you are seeking.
If you want to operate in the UK you will appear on the FSA register in one form or another. Only mortgage advisers and employees that do not hold control functions dont appear on the register. That may well change in future if mortgages move from light touch to full regulation

.
Some of the firms looking for a sheep without any experience to get such kind of authorisation from the FSA as they do not want (or can not?) to take any liability.
"My" company has around 10 advisers: 70% of them registered as AR. 1 in FSA register with FSA reference number + director with CF1 function.
So as I correctly understood it is no need for me to be either registered anythere and I do not have to do so.
It is not the question for this firm as I am not happy with them anyway (thanks for help) but it is the question for future reference. Where and when I have to be registered and shall I necessary go for "fit and proper test" to become an approved person or I could be working as AR without any kind of future liabilities from my side directly.
Thanks again for time. Hope it would be helpfull for anyone who just started career in mortgages.

Dewks

Hi,

On this one I don't know if anyone can help me..... I left a big estate agent based company as a mortgage advisor in January 2010 to go and work for an independant insurance broker selling life protection etc... I have since moved into another company to set up protection and now want to look at mortgages - will I still has CAS status!!??

Meeper

I doubt it very much, not only for mortgages and protection, but also for spelling and grammar.