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AMI to hold PI talks over direct-only loans

The Association of Mortgage Intermediaries is to meet with professional indemnity insurance providers in September to address the problems of covering advice on direct products.

Advisers have raised concerns on whether their PI cover extends to advising clients to opt for direct-only mortgages as they may not be able to carry out full regulated advice such as providing a key facts illustration.

AMI director Rob Sinclair says: “This needs to be addressed. Some times, advisers might step out of PI cover to help a client in the interests of best advice but some times the wording of PI cover may be wrong for the current environment.”

Personal Touch Financial Services sales director Dev Malle says: “We have some major worries about our appointed representatives giving advice on off-panel direct products. Our view is if the adviser promotes a product, that is advice. But if both the adviser and the network cannot fulfil the regulatory processes, then the PI cover will not be valid. It could be very dangerous.”

Malle says PTFS is currently advising all its ARs to continue to only advise from the network’s panel of providers.

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There is one comment at the moment, we would love to hear your opinion too.

  1. Direct Deals
    I am a member of PTFS, and I have lost two mortgage sales this week due to that the clients went direct to lenders because I could not offer a competitive deal. If we have had a process in place to offer clients advice on direct deals I would at least have made some money. I also think that clients will remember my uncompetitive deals next time they need a mortgage… and they may not even bother asking for a quote…

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