Fact find and suitability documents mandatory?

blahblah2

After some advice...

Recently bought a house, mortgage arranged 6 months ago and moved in 3 months ago.

Mortgage advisor pulled a few tricks along the way and I have vowed not to deal with the firm again.

Recently the firm has been pestering me to sign two forms for them and I have ignored their requests until today. They claim that I must sign a mortgage suitability document of theirs and also sign a fact find document of theirs in order to comply with money laundering regulations.

How true is this or are they having me on?

I don't have much confidence in them, hence I doubt some of their remarks.

Surely my solicitor and mortgage lender have already ensured compliance with the relevant regulations?

Thanks in advance

Dipplo

Perhaps they should've asked you to do that before they arranged a mortgage for you - I don't see why you would be under any obligation to do anything they ask you to now. Sounds to me like they were meant to get you to fill in these forms at the time, forgot, and now through some audit they've realised their mistake.

I would have a look back through any forms you signed for them and any T&Cs you agreed to upon using them just in case. If there's nothing in there which states you are required to fill out particular forms, especially 6 months on, then I'd ignore all communications - they can't force you to do anything and have nothing to do with you or your mortgage now.

That's just my opinion but I am quite stubborn.

kingstreet

Within a few days of submitting the application, we email out copies of;-

signed terms of business
factfind
final illustration
application form
suitability letter.

We ask the applicant to check everything and ensure accuracy. We ask them to email back to confirm acceptance.

We do not ask them to sign anything.

I do not see anything requiring a signature for money laundering purposes. The firms appears to have failed to follow its internal compliance procedures, or that of its host network.

There are no sanctions if you don't want to sign.

AnotherJoe

I'd say it sounds like what Dipplo said, internal processes they messed up on. I dont see what possible sanctions they could bring into play now, so as they did you no favours before, why would you help them now? A rare example of karma.

ACG

They have messed up...I have done this once or twice myself (when I was mega busy and did not know if I was coming or going).
I think the biggest difference is I tend to get on with my clients and they are happy enough to save my skin.

If you do not do anything, nothing will happen to you or your mortgage. The money laundering checks have been completed by the solicitor, the lender and hopefully the broker.

Could you not use it as leverage to correct some of the issues you had with them?

amnblog

There is no regulatory requirement for a client to sign a fact find or suitability document.

dunstonh

Recently the firm has been pestering me to sign two forms for them and I have ignored their requests until today. They claim that I must sign a mortgage suitability document of theirs and also sign a fact find document of theirs in order to comply with money laundering regulations.

How true is this or are they having me on?

Factfinds and suitability reports are not part of the money laundering requirements.
They are also not required to be signed by clients. Although many firms will get people to sign them as proof of receipt. If a firm requests it then it is their own internal compliance that requires them to do this.

It sounds like they have missed this at the time and are asking for it now. Although the reason they are asking for it is bogus. That said, if you refuse to sign them, this will be noted on your file and could reduce your consumer protection in the event of a complaint (in respect of a timebar). In extreme cases, the compliance officer may decide that the information they have in conjunction with your refusal to sign suggests there may be issues and decide to open an investigation which could involve the lender and letting them know that they have doubts about your application. Unusual but a possible outcome.

Technically, there is no regulatory requirement to issue a suitability report on mortgages. Although most firms will issue a closure letter.

amnblog

dunstonh wrote: »

there is no regulatory requirement to issue a suitability report on mortgages.

Not a lot of people know that.