"Directly authorised firms will be undergoing a significant transition in the coming months, and we’ll be continually revisiting our comprehensive library of support materials to ensure they have everything they need."
- Linda Preston-Todd, client relationship director at Sesame Bankhall Group
In light of several directly authorise mortgage firms expressing concern over their ability to adapt to the FCA’s requirements for demonstrating fair value, PMS Mortgage Club in partnership with Sesame Bankhall Group, has released new guidance and support. The duo hope it will help firms prepare for the FCA’s examples of good and bad practice, which are expected to be published over the coming weeks.
The new suite of support includes guidance on the steps firms should take to help demonstrate fair value, the Consumer Duty checklist to help firms demonstrate how they’re embedding the new requirements, and examples of best practices across the industry. This support will allow firms to have oversight on what individual product providers and mortgage lenders are implementing to adjust to the ‘new normal’.
Commenting on these enhancements, Alex Beavis, group director at Mortgage & Protection, has said:
“Consumer Duty is a sea change in terms of the way firms are regulated and so it is unsurprising many feel they need additional support. In partnership with Bankhall, we’ve looked to do the heavy-lifting and collate all the information firms need to demonstrate fair value and governance in one place, as well as help them set out a process for continually stress testing and reviewing their work.
“Directly authorised firms will be undergoing a significant transition in the coming months, and we’ll be continually revisiting our comprehensive library of support materials to ensure they have everything they need.”
Linda Preston-Todd, client relationship director at Sesame Bankhall Group, added:
“While advisory firms operating in protection and general insurance have been accustomed to fair value frameworks since their introduction in 2021, this is a brand-new area for many mortgage advisers. Therefore, it’s crucial firms take the time to carefully validate their work and have a means of sense checking this against industry best practice.
“Encompassing free guidance, backed-up with access to our regulatory experts, our latest package of support aims to provide advisers with all the insight and intelligence they need to ensure their work stands up to regulatory scrutiny.”