The scheme will mean that complaints against firms will be judged against the agreed industry standards at the time the business was written rather then retrospectively with any new rules or standards that may have evolved in the intervening years.
Chris Cummings, director of AMI, commented: “Business needs certainty if it is to thrive. You only know what you know at the time and firms can now feel secure that they won’t be judged retrospectively.”
FOS spokesperson, Alyson Hoyland, commented: “The details of this project have yet to be finalised but it is all about setting out what the standards and agreed market practices are now.
“We always encourage these kind of projects with the sectors we cover.” The two organisations are also launching a training programme for FOS case handlers which will be aimed at giving them an understanding of the way in which mortgage brokers run their businesses and deal with clients.
“This way if a customer phones the FOS with a complaint and describes the sales process they have been through, the case handler will instantly know if anything unusual has gone on,” explained Cummings.
Hoyland added: “It is important that we understand exactly how mortgage brokers work and how this may differ from firms we already work with, even though many firms were already covered by us for other business like investments.”
Bill Warren, director of The Complete Network, commented: “It is very encouraging for brokers who are new to the FOS to see them getting so involved. This can only be of benefit to brokers.”
AMI will be holding an intermediary lunch with Jane Hingston, the lead ombudsman for banking and credit, as the guest speaker.
