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Trade bodies reach landmark agreement on broker panel removals

Trade bodies have reached a landmark agreement over panel removals and have published guidance on how lenders should approach the issue.

Over the past six months, dozens of brokers have contacted Money Marketing sister-title Mortgage Strategy complaining that they had been kicked off a lender’s panel without explanation and without a right to an appeal.

The guidance, produced by the Association of Mortgage Intermediaries and the Intermediary Mortgage Lenders Association, seeks to ensure brokers get a chance to defend themselves, unless they are suspected of committing fraud.

While the guidance is not binding, it says lenders should advise brokers of the quality measures they apply and which performance measures might lead to disciplinary action.

The trade bodies have not insisted on a standard appeals process but the guidance says there should be an appeals process in most cases (except for fraud) and that this should be “open and transparent”.

Finally, it says lenders should not remove a broker based on information purely from another lender unless it is backed by evidence. However, the exception to this point would be if a criminal conviction was uncovered or a club or network provides information that warrants removal from the panel.

However, the guidance does make specific reference to lenders’ desire to “choose who they do business with”.

AMI chief executive Robert Sinclair says the guidance should leave brokers confident that they will be treated appropriately and are given a fair right to appeal.

He says: “It is very personal for the people it happens to and so whilst the numbers might be small, once it happens to somebody it is significant. Therefore it is important then that they feel the processes they have gone through with lenders are robust.”

IMLA executive director Peter Williams says: “My instinct is for many lenders this captures what they were already doing.

“But this is really about giving everybody a sense of what everybody else is doing and, hopefully, a few outliers coming into line and everybody else being comfortable with what’s happening.”



Advisers could pay 30% of guidance costs

Advisers could pay 30 per cent of the total Budget guidance levy under proposals set out by the FCA today. The regulator says advice firms who come under the FCA’s A13 fee block and have annual income of more than £100,000 will contribute to the levy. Small firms which only pay the minimum regulatory fee, […]


Neil Liversidge: Taken hostage in the name of advice

In my March column I advised you to paint your risk warnings with a four-inch brush.  Adam Samuel’s superb Better Business article in recent weeks warned of the dangers rich clients pose, which brought to mind a rich former client of mine with whom, thank goodness, I followed my own mantra to the letter.  In 2008 […]


Advisers remain critical of Aegon despite trail commission U-turn

Advisers remain critical of Aegon despite the provider having backtracked on its policy of removing adviser trail. In June, the firm wrote to 11,000 customers asking if they were still receiving advice from their adviser. Where no response was received, Aegon said the advised relationship would be turned off.  However, last week, Aegon announced it had reversed […]


Gadget of the fortnight: Text to Speech

Two months ago in this column I looked at how easy it can be to dictate text straight onto an iPhone or iPad. However, the challenge with using voice recognition can be that while you do not get spelling errors, you can get “sounds like” errors. This does make it important to properly proofread dictated text.  […]

Europe: banking on a recovery

Neptune video: Europe — banking on a recovery

Arguing that the eurozone crisis is over, watch Rob Burnett, head of European equities at Neptune, discuss the sectors that he’s investing in to harness the recovery. 

In the video, Burnett addresses the following: 

• The primary drivers of the eurozone’s economic recovery
• The turnaround in individual countries’ current accounts
• Sectors best positioned to harness the recovery, without offering undue exposure to risk


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There are 3 comments at the moment, we would love to hear your opinion too.

  1. My company was removed from the Lloyds panel in July 2014, 2 weeks prior, my so called colleague and co-Director was removed from NWBS (just that person), 2 weeks after Lloyds, Abbey de-registered the same person, the last time I tried to do any business with Lloyds was 3 months prior to my company getting struck off, now to me why should I suffer because of my colleagues issues, I know I haven’t done anything wrong, even appealed it twice but still didn’t tell me why I was removed.
    Now no other network will take me on even though I have given as much evidence as I can to help my cause, the last6 months has been very good business wise, now I’m left with my career down the plug hole, I have been doing mortgages for almost 20 years, and actually started at Halifax, I loved doing them, and helping people, now my life is in ruins because of my ex colleague, Lloyds not giving too hoots about other peoples lives, while they get their big bonuses, and the FCA trying to prove their power by not even listening to us innocent people. No-one cares about the honest people whom do this job for the love of it and for their clients. My heart has been broken by what’s happened, and feel my life is over. Yet there are dodgy people whom get away with it still. I want to make this all public so my clients can help me and confirm to the FCA and Lloyds that I am a good honest guy, but I know I will just be a needle in a haystack.
    This is totally unfair what’s happened, and should not just get of people because they think they can.
    No wonder people have no faith in the Banks they way they treat individuals.

  2. @Anon – The bank/lender has the right to choose not to deal with a client, but in law, once the banker customer relationship has started, they are a littlemore limited in what they can do legally than one might think.
    Yes they can refuse to pay a proc fee, BUT the consumer can appoint whoever they like under a general power of attorney and Santander mortgages include a power of attorney which the consumer doesn’t even realise they are committing too unless they read the small print (TCF?)
    A GPA could be used if you accept the fact you are not going to get a proc fee if you have a client willing to play hardball with the lender.
    This is from FOS website and just because it says tips for banks does NOT mean it is inappropriate for all other institutions.

    our tips for banks

    It’s not always easy to know what the right thing to do is when dealing with people who are managing the finances of your customers. So here are some tips to help you get things right when dealing with a “power of attorney”.

    what is a power of attorney?

    A power of attorney is a way of giving someone the legal power to manage your finances.

    why do people take them out?

    You can take out a power of attorney if you need someone to help you manage your finances. This might be because you’re out of the country, or recuperating from an operation. Many people take them out if they are ill or are concerned about losing the mental capacity to make their own decisions.

    what’s so important about power of attorney?

    If someone asks you for help registering a power of attorney or has a problem involving one, they might be acting on behalf of someone who is seriously ill or has lost the mental capacity to act for themselves. It’s likely that the person you’re speaking to is under a great deal of stress or is upset. So taking the time to understand their circumstances – and how you can help – can make all the difference.

    if someone asks me to register a power of attorney, what should I do?

    If you’re asked to register a power of attorney then the person named on the document has been given permission by your customer to manage some or all of their finances. The power of attorney will explain what powers it gives and to who. You’ll need to register the document on your computer systems, so the attorney – the person named on the document – can act on behalf of your customer. Find out more about the different types of power of attorney here.

    what should I do with the power of attorney?

    Every bank has their own process for registering a power of attorney. Most will ask you to get copies of documentation, including:

    a copy of the power of attorney
    identification from the person registering the power of attorney – this is usually the same information needed to open a bank account.

  3. Ours are general powers of attorney limited to information access only as we are not a firm authorised to handle client moneys. We have not needed to use them yet with providers, but they are there ready for if any of them try to do to us what they have done to anon above or should we want on-line access and they say they don’t give access to third parties as we are NOT a third party when we have a GPA, we are for all intents and purposes another part of the same customer of theirs in law.

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