You are here: cherry > Press releases for July 2010 > Home Buyer Systems urges brokers to turn CIDD requirements into new sales opportunities

26 July 2010

Home Buyer Systems - the providers of mortgage and insurance sales systems - has revealed that brokers who have issued Combined Initial Disclosure Documents (CIDDs) in the past to cover mortgage and insurance advice may be in breach of FSA requirements if they have never followed up on the insurance advice and recommendations. However, in reviewing this part of their compliance records, brokers can create an excellent opportunity to revisit their existing customers to generate new insurance business. Richard Angliss, managing director of Home Buyer Systems, explains: “Back in the times of frenzied mortgage activity it was all too easy to give a CIDD but just not have time to get round to doing the insurance element. If, however, the CIDD had indicated in section 3 that the broker would advise and make a recommendation to the client after their needs had been assessed, the FSA would expect to find on the files that this was carried through for insurance as well as the mortgage. By “carried through” the regulator means that they expect to see that the broker has given advice and recommendations on all areas of Protection and GI that have been stated in section 2 of the CIDD. Even if the customer decided they did not want to accept the recommendations the regulator would expect to see documented evidence of this. “Brokers need to be aware that remedial action to put right any CIDD failings can be turned to their advantage. They need to use the FSA’s requirement to review their customers’ insurance needs on a regular basis to re-contact their customers. In doing so, they will not only be putting things right from a compliance point of view, but will also be creating the opportunity to earn additional commission.” Home Buyer Systems’ Protect & Insure product (HBSPI), which was launched in June 2010, is designed as a standalone tool for insurance advice and sales and was been built in partnership with a financial services training company, following the proven process used to train people to maximise their sales of these products. The system provides the ability to do all the factfinding, establish “Demands and Needs” then produces a single Suitability Report covering all recommendations. To give Financial Advisers the opportunity to see this for themselves HBS is offering a one week free trial, available from the Home Buyer website www.homebuyersystems.com. Ends

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