Possible negligence from my mortgage broker

payless

Perhaps I don’t, I advised my first insurance client in 1986 , mortgage client in 1987, and investments 1988,  have worked through pre regulation, Lautro PIA, MCCB, FSA and FCA, as adviser, compliance officer and directly authorised business owner,  moving to training in 2012.  I have original FPC , current Level 6 qual, Cemap and chartered status from one of the major professional bodies. 

In your example you talk about loss after transacting business, the OP case was not transacted.

ACG

payless said:

Perhaps I don’t, I advised my first insurance client in 1986 , mortgage client in 1987, and investments 1988,  have worked through pre regulation, Lautro PIA, MCCB, FSA and FCA, as adviser, compliance officer and directly authorised business owner,  moving to training in 2012.  I have original FPC , current Level 6 qual, Cemap and chartered status from one of the major professional bodies. 

In your example you talk about loss after transacting business, the OP case was not transacted.

 Because he was ADVISED not to. 

All of the above is very good, but most of it is not relevant in todays world. 

payless

Yes I did start my training ready for A Day, but was still very active when mortgage advise moved from MCCB to Fsa, and latterly within FCA regulatory environment, including recently being involved in the examination  of advisers. 

( for posting on social media ..  see. FG15/4) 

When escalated, the liability when no product was transacted is not something I have seen an award made, and certainly regulators don’t generally make an award on the connected property transaction. 

RyanWills94

payless said:

Yes I did start my training ready for A Day, but was still very active when mortgage advise moved from MCCB to Fsa, and latterly within FCA regulatory environment, including recently being involved in the examination  of advisers. 

( for posting on social media ..  see. FG15/4) 

When escalated, the liability when no product was transacted is not something I have seen an award made, and certainly regulators don’t generally make an award on the connected property transaction. 

But he was my mortgage broker, I wouldn’t have gone anywhere else, you tend to stick with your mortgage broker so when I call him, he is still providing regulated advice, you don’t pay your bank but call for regulated information and expect it to be correct, and when it’s not and it’s caused financial loss then they are liable. 

ACG

The FOS who look beyond legal matters in my opinion would side at least in part with the customer. The broker recommended they held off based on incorrect information. It is not the customers fault they did not update KYC documents (assuming they didnt) or that they did not check with the lender (again, assuming they didnt). It is not reasonable to expect the customer to call their broker and say can we just update KYC stuff and can you check with the lender, it is the brokers responsibility to take the lead on that. You cant really say "no business was transacted so we are not liable" if the reason for that is the advice was against doing the business. 

To put it another way, I also run my own DA firm and if this had been one of my brokers, I would be expecting to write a cheque out, not because I suspect the FOS would insist on it but because morally it is the right thing to do. The only complicated part in all of this is how you work out what is right. 

This is not a case of the customer wanted to increase the share of ownership but, they called their broker for advice. They didnt call the broker for a catch up. They shown an intent on doing something and based on the outcome of that conversation they held off. 

I dont know how it will go, I have seen stories where the ombudsman in their wisdom have held advisers liable for things they shouldnt be and like wise I have seen stories which seem cut and dry in the customers favour go against them. But in my opinion from what has been posted, this seems brokers error and needs to be put right. 

SpiderLegs

Any update on this one OP?

RyanWills94

SpiderLegs said:

Any update on this one OP?

Last letter I received was apologising for the delay, they have all the information to investigate and should be getting back to me very soon. I guess it’s promising because they normally close complaints in the first 3 days, just over 80% of complaints. So the fact it’s taking this long must mean they are taking it serious and looking at it from every aspect.

RyanWills94

Still absolutely no reply as a result of this. I asked for an update and they said it’ll be by the 8th week deadline. They are really dragging this out, not sure why it would take 8 weeks considering the broker has admitted his faults. 

ACG

RyanWills94 said:

Still absolutely no reply as a result of this. I asked for an update and they said it’ll be by the 8th week deadline. They are really dragging this out, not sure why it would take 8 weeks considering the broker has admitted his faults. 

There is not a definitive amount of compensation that will put it right as the loss is not possible to assess at the minute because the mistake is still effectively ongoing. 

There will also be insurers involved and possible speaking to the lender to find out if the case would definitely have fit. 

RyanWills94

ACG said:

RyanWills94 said:

Still absolutely no reply as a result of this. I asked for an update and they said it’ll be by the 8th week deadline. They are really dragging this out, not sure why it would take 8 weeks considering the broker has admitted his faults. 

There is not a definitive amount of compensation that will put it right as the loss is not possible to assess at the minute because the mistake is still effectively ongoing. 

There will also be insurers involved and possible speaking to the lender to find out if the case would definitely have fit. 

I’ll hear back today by 5, I just received an email. Wonder what the response is going to be, like everyone’s said it probably won’t be a great response.