AMI
10% membership discount available to cherry members!!
A key aim for cherry is to make life easier for intermediaries. One way of achieving this is to group potentially useful things together onto the site - so that cherry becomes central to the way you work. With this in mind, here are some statements made specifically for cherry members.
If you wish to join AMI - please email the heading AMI along with your phone number to info@cherryplc.co.uk and we'll ask someone to call YOU.
Articles / Press Release
1 Feb 2008 - AMI launches latest ‘Quarterly Economic Bulletin'
25 Jan 2008 - AFB & AMI Consumer Credit Directive Success
4 Jan 2008 - AMI Publishes RDR Response
12 Dec 2007 AMI response to call for lenders to support borrowers
4 Dec 2007 - AMI launches Viewpoint guide on Residential Property
Development Finance
26 Nov 2007 - AMI response to Mortgage Thematic Review from FSA
26 Nov 2007 - AMI comment on potential Northern Rock takeover
23 Nov 2007 - Market Comment from AMI
9 Nov 2007 - AMI Launches TCF Working Party and Responds to the FSA’s Latest TCF Report
9 Nov 2007 - AMI and AFB to attend Mortgage Business Expo London 2007
6 Nov 2007 - AMI Responds to Queen’s Speech 2007
2 Nov 2007 - AMI launches latest ‘Quarterly Economic Bulletin’ – Quarter 4 report predicts rate cut by the New Year
REMEMBER, YOU CAN ONLY ACCESS THE FULL AMI SITE AND INFORMATION IF YOU ARE AN AMI MEMBER.
JOIN TODAY AND TAKE ADVANTAGE OF YOUR 10% DISCOUNT THROUGH CHERRY.
AMI's responses to queries raised by cherry on behalf of intermediaries
|
Date |
Query | AMI Response |
| 20.02.2007 | SecurityWith the recent fine of nearly £1m handed out to Nationwide over the theft of a laptop, what lessons does AMI think there are for intermediaries. What is there to learn from this incident regarding security strategies that will prevent the broker being held in any way liable. | Clearly, the importance of keeping client information secure should never be underestimated. Intermediary firms are liable for the data they collect and hold from clients and therefore this should be held safely and securely. If brokers are working off-sight on company lap-tops then it would seem to make sense not to hold client bank information on those lap-tops. Accidents do happen, and hardware does get misplaced or lost, but if the broker is not carrying around information on everyone of his/her clients, then the risks following these ‘accidents’ can be minimised. Security is also vital in the office and firms should ensure they have a secure back-up of all their information, preferably held off-site, should the worst happen, for example, a fire or flood. This could be via an outsourced data company’s server. The ‘paperless office’ does not exist and firms should try duplicate important client information in either paper or data file form. Firms have a regulatory duty to hold on to client information but there is also a duty to the business. We have heard horror stories where a company’s entire sales database has been lost, with no back-up. Common sense is the key here – ensure that the data you hold is secure and that you can access a back-up should you ever need to. |
| 06.02.2007 | Run Off PI cover and retirement. You may know that cherry has recently, through its relationship with Towergate Lifestyle, been able to offer brokers access to ‘stand alone’ PI cover. For some, this means they are afforded some representation even after they have left the industry / retired etc. What is AMI’s position regarding retired brokers or brokers who are no longer involved in mortgages on a day to day basis? Can they remain members of the Association with all the benefits that it offers - and if they can, is it actually worth them doing so? | Retired mortgage intermediaries can continue to be members of AMI and if they want to keep up to date with all regulatory and market developments then we would suggest that they continue to do so. |
| 06.02.2007 | PaymentshieldWe (cherry) have had a response from the FSA saying that they will not get involved in the dispute between brokers and Paymentshield as it is a commercial relationship and we understand that is also AMI's stance. So... do AMI feel anything can be done (if not by them, by someone else) to protect the interests of Brokers? | We conducted some research amongst members recently and the results were as follows: Three quarters of respondents believe that trail commission for insurance sales should continue to be paid after the firm or adviser has retired, while 50% believe trail commission for insurance sales should continue to be paid when the firm or adviser is no longer FSA authorised, for reasons other than retirement. This is obviously a difficult situation given that it involves a commercial contract between individual firms and Paymentshield. AMI is a trade body and cannot involve itself with commercial agreements. However, we can conduct talks with the ABI to try to work towards a situation where this does not happen again. We will be doing this but our advice is for firms to make sure they are comfortable with the terms and conditions they are accepting – if they are not, they should not sign them. |
| 06.02.2007 | Compliance CompaniesAccording to recent press, there are apparently 105 Compliance companies of whom only 3 are actually authorised by the FSA. What does AMI feel about the use by Brokers of Compliance companies who are themselves not regulated? Does the fact that there are a few who are regulated necessarily make them better in AMI's view? | To be regulated by the FSA firms have to be conducting regulated business so it is not surprising that the majority of compliance companies are not regulated. That said, the FSA does keep a watchful eye on the work of compliance companies and has drawn up a checklist for firms to use when appointing a consultant. Intermediary firms should ensure that the compliance company they intend to use is suitably experienced and qualified to do the job asked of them. Brokers should ask what level of both business and regulatory experiences the consultant has, and also check to see if the firm is a member of a trade body. The Association of Professional Compliance Consultants (APCC – http://www.apcc.org.uk) is made up of firms who advise companies regulated by the FSA. The APCC has a number of objectives and aims, plus it is developing a framework for professional standards. AMI’s advice is for firms to do their homework before appointing a consultant – make sure you are comfortable with the service you are getting for the money you are paying and review this on a regular basis. |
FSA’s Quality of mortgage advice findings
The FSA recently published its quality of mortgage advice and the message was that a large number of smaller networks and firms reviewed did not have robust processes in places, especially in the areas of T&C, record-keeping and suitability. AMI recognises the difficulties small firms can have in terms of their resources to deliver high compliance standards. These firms require greater help and support from the FSA and we have suggested that the FSA might like to consider their resources in delivering this. The FSA should increase its visibility amongst smaller firms to send out the message that no firm is below the radar. AMI is here to support members and help firms meet their regulatory responsibilities. One of the key actions to come out of the FSA’s findings was the need for smaller networks and firms to review their T&C arrangements. AMI has therefore published a factsheet for members entitled: ‘Achieving and Evidencing Competent Adviser Status’.
Further thematic work
As you will know, the FSA have a large amount of thematic work planned in the mortgage industry over the next six months. As well as work specifically looking at MCOB, ICOB, sub-prime mortgages, self-cert mortgages, interest-only mortgages, equity release, PPI (see below), and mortgages into retirement, FSA are also working on two major projects. Firstly, FSA are implementing the European Commission’s Markets in Financial Instruments Directive (MiFID) which will have some impact on mortgage and general insurance intermediaries in areas such as T&C and complaint handling, while it is also attempting to move its regulation away from prescribed rules to a more principles-based regime. These two latter projects in themselves are huge and we believe that FSA is trying to do much. That’s without mentioning its Retail Distribution Review work. Statutory regulation in the mortgage industry has only been with us for just over two years and AMI believes we need a period of stability for firms. That said, we do take an active part in all of FSA’s work and have a wide variety of factsheets on other regulatory issues and responsibilities to help members come to terms with the rules and any communications from FSA..
PPI
FSA have recently announced phase three of its PPI thematic work. It is calling this one of the biggest rounds of work it has ever undertaken and therefore intermediary firms must ensure their sales processes are of the highest standard. FSA is checking back on firms it has already visited and also visiting new firms. The regulator has already issued large fines for firms whose advice and sales standards were not up to scratch and those who did not treat their customers fairly. There will be more fines in the very near future and it is also highly likely that firms visited as part of phase three will also be placed into enforcement. Make sure your firm isn’t one of them. Could your firm cope with a five figure fine? AMI members can use our ‘PPI checklist’ factsheet to ensure they are doing all they should be, plus they can view or ‘Income and Protection Product Briefing’ for an update on the products themselves.
HIPs
HIPs come into force on the 1 June 2007 which means anyone selling a residential home (with a few exceptions) will need a Home Information Pack. The Government u-turn on Home Condition Reports (HCRs) now not being a mandatory part of the pack may have led some intermediaries to believe that HIPs themselves will not be necessary. This is not the case. Your clients selling their homes will need one, while other clients may simply want help on interpreting what the contents mean. We have produced two HIPs factsheets – the second one following last year’s Government announcement. It explains what documents must go in the pack, what can go in the pack and also outlines some routes intermediaries might wish to go down. Our advice at present is to weigh up your options – will you want to provide your clients with HIPs? If so, you should consider the propositions of third-party HIP providers who should be firming up what they can deliver over the next month or so. Ask questions of these providers such as ‘Do you subscribe to a HIP code?’; What consumer redress is available for any complaints?’, etc. Firms should also ensure they are forming relationships with local, independent estate agents
Generic advice service
The Government recently announced the establishment of its new taskforce to research and design a national generic financial advice service. The aim of this new advice service is to ensure that every person, including those on the lowest incomes, can get quick, easy and simple access to good quality financial advice. One Cherry member asked: ‘Why is AMI supporting this?’ Firstly, we have made the point that this should be provision of generic information, not advice. The people involved in this service will not be providing advice but information, and where advice is required they must refer to a professionally qualified adviser. Secondly, we believe a big step forward is that the Government has accepted that advice is a good thing and that people benefit from having sought it. We have supported the financial capability programme and believe that a better financially educated public can only be a positive for this country and those advising on financial products. There are issues to be addressed with this and AMI will be fully involved in the taskforce representing its members’ views.
A message to cherry members from the Association of Mortgage Intermediaries (AMI)
This year will be a particularly challenging for intermediaries and AMI is here to support you and ensure your voice is heard.
AMI is committed to helping members improve their mortgage advice and sales standards. We already offer a wide variety of factsheets covering a range of issues including developing TCF in your business, dealing with retention business and sub-prime financial promotions.
The FSA’s Mortgage quality of advice process review outlined a number of key actions for intermediary firms to take. One of those was to review their Training & Competence (T&C) procedures. AMI will this week publish a T&C factsheet for members. The objective of this factsheet is to provide straightforward steps for mortgage intermediaries to design, implement and monitor a T&C scheme for their mortgage advisers.
We are also publishing detailed guidance notes for intermediaries on advising and arranging equity release products. The objective of the notes is to assist firms who are considering entering this growing market to understand all aspects of the advice process, regulatory requirements and legal considerations. For those already in the market it can be used as a useful cross-check to identify any areas which may be being overlooked or not given adequate attention. The notes also include a list of useful contacts and sources of information.
There is also a wealth of information on the members’ area of the AMI website: http://www.a-m-i.org.uk
REMEMBER, YOU CAN ONLY ACCESS THE FULL AMI SITE AND INFORMATION IF YOU ARE AN AMI MEMBER.
JOIN TODAY AND TAKE ADVANTAGE OF YOUR 10% DISCOUNT THROUGH CHERRY.
If you are interested, please email the heading AMI along with your phone number to info@cherryplc.co.uk and we'll ask someone to call YOU
