AMI launches T&C factsheet

The factsheet, entitled ‘Achieving and Evidencing Competent Mortgage Adviser Status’, focuses on how firms can implement a T&C scheme.

Last week the FSA published the findings of its review into the quality of mortgage advice processes used by regulated firms. One of the key actions the FSA issued to smaller networks and firms was to review their T&C procedures to ensure they are appropriate and are being properly used by the firm.

The factsheet's objective is to provide straightforward steps for mortgage intermediaries to design, implement and monitor a T&C scheme for their mortgage advisers.

The key steps outlined in the factsheet are:

• Establishing the competencies, knowledge and skills required.
• Setting recruitment standards.
• Identifying how and when you will assess competence.
• Setting standards for maintaining competence.
• Documenting how the process will work.
• Identifying competent supervisors to ensure the process is followed.
• Identifying the forms and records you will keep to record progress.

Rob Griffiths, associate director of AMI, commented: “While we were pleased to see that most firms in the large mortgage network and large firms sample of the FSA’s quality of mortgage advice research had ‘well structured tailored, and monitored’ T&C schemes in place, a number of smaller networks and firm’s T&C schemes did not reach the necessary standard. For example, the FSA identified a number of smaller firms employing advisers who did not hold the necessary qualifications and provided advice to clients unsupervised. There were also cases where an adviser allowed an unqualified person to complete factfinds and discuss mortgage products with clients without monitoring to check they did not give advice.

“AMI member firms looking to respond to the FSA’s key actions resulting from these findings are advised to use this factsheet to review their current T&C arrangements – check points are provided with each key step allowing firms to approach their review in a step-by-step manner. For many smaller firms, producing a T&C scheme can seem like a mammoth task but following the guidance in the factsheet will help firms focus on the key points.”