HLPartnership Inspiration Magazine: August 2019

August 2019

inspiration for our partners

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HLP awarded Best National Network Partner 2019

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Whats new in technology?

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Developments in the mortgage market

Why we were voted Best National Network Partner 2019 Innovation in Technology.

Technology has been a clear focus in the business with the early adoption of 360 dot net as the core CRM platform, and the integration of Twenty7Tec as its mortgage sourcing system. Add to this the integration of Solution Builder into its protection proposition alongside investment to deliver efficiencies in the general insurance sales process, and it is clear technology is a clear driver for the business.

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At the Legal & General Mortgage Club Awards 2019, held at the Guildhall in London, HLPartnership were confirmed as the Club’s Best National Network Partner. L&G Mortgage Club had invited a panel of respected industry experts to assess each nominee and give their vote for a winner. To help the judges HLP submitted a testimonial to highlight how the Network has supported its advisers, how it had adopted new technology, and ultimately worked with you, our membership to deliver great customer outcomes.

We Received Recognition for: The Growth of the Network.

The panel recognised the growth of the Network.

Through our members, we are looking to help in 2019 over 25,000 customers, complete on more than £6bn in lending, and ensure the majority of those customers had plans in place to provide financial support should the unexpected happen.

A Forward Thinking Network.

Comprehensive Education & Workshop Programmes.

A programme of workshops and increased communication opportunities, which, along with technology enhancements have reinforced the Network culture of continuous education. By the end of 2019, members of the Network will have had access to fifty six events arranged locally across the year covering a number of informative topics such as using Social Media, Later Life Lending, Specialist Lending and Benefit led protection advice.

Shaun Almond Managing Director

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elcome to our latest edition of our magazine.

As a network, we have already seen a lot of success since our last issue. After a record year in 2018, we have continued to build momentum with record Q1 lending figures, an increase in the uptake of multibenefit protection policies and industry recognition at the Legal & General Mortgage Club Awards.

There has never been a more exciting time to be a part of the network!

I would like to start by personally thanking all of our members who continue to support the network.

Without you, we wouldn’t have been able to achieve what we have. One of the main successes (that still makes me smile) is the recognition we received at the 2019 Legal & General Mortgage Club Awards. Held at London’s Guildhall, HLPartnership was confirmed as the Club’s Best National Network Partner.

L&G Mortgage Club had invited a panel of respected industry experts to assess each nominee and give their vote for a winner. The L&G Mortgage Club panel recognised the growth of HLPartnership, its innovation in technology, and the support it provides its members through its comprehensive education programme. In 2019 we are looking to help over 25,000 customers complete on more than £6bn in lending and ensure the majority of those customers have plans in place to provide vital financial support should the unexpected happen.

We were recognised for our innovation in technology. As you know, technology has been a

Call: 03300 552 651 Email: support@hlpartnership.co.uk

clear focus for us in the business with the adoption of 360 Dot net as our core CRM platform, and the integration of Twenty7Tec as the mortgage sourcing system. With the integration of Solution Builder into our protection proposition and continued investment to deliver efficiencies in the general insurance sales process, it is clear that technology will play an increasingly important role for our members in the future.

This prestigious award recognises the hard work the HLP team here at the network has given its members, delivering support, education and innovation to the advice process. Thanks to that support, your work as advisers means that more customers will not only receive the right lending solution for their needs, but also the protection to provide that peace of mind should the worst happen.

So, thank you for your hard work and the vital contribution you make to members as they continue deliver financial security for their customers.

We have continued to invest in staff to ensure that you receive the best support. Peter Rose and Tom Barnett have joined the recruitment team. If you are looking to grow the number of advisers in your business, then get in contact with us and we will help you with your recruitment requirements. In addition to this, we have increased the number of staff to support all our members.

I look forward to seeing you at our upcoming events where there are real opportunities to learn and find ways to enhance your business.

Kind regards Shaun Almond

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Gavin Earnshaw Compliance Director

Building a picture of individual business quality

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J

uly marked the start of my 4th year as a director in the network.

As each anniversary passes, I like to reflect on the work done to help improve the business and focus on the key challenges ahead.

My area of responsibility is for all things relating to compliance and, as I have been reflecting, one of the most significant achievements is the improvement across the network in terms of business quality.

What do I mean by ‘business quality’? Well, this is really a measure of how likely an application is going to be accepted (and ultimately complete) and what steps have been taken by the adviser to make sure the information on the application is accurate and how much additional due diligence has been taken to prevent potential fraud.

Business quality impacts on how we are perceived as a collective and a good impression has lots of tangible benefits, not least our ability to maintain market leading commercial

A Forward Thinking Network.

arrangements, from which we all benefit.

Performance (and therefore ‘quality’) is measured by factors such as ‘application to completion conversion rates’, ‘right first time’, ‘accuracy of income/outgoings input’, ‘verification of data’, ‘staged income/employment’, ‘take up rate’, and ‘straight through processing’. These terms may not mean much to you, but they are all derived from the work that you do and they form the language of the meetings that the network has with our product partners.

We have regular ‘business quality meetings’ with our product partners and those meetings will look at the way the network performs as whole, but will often focus on individual firms and advisers in the network whose quality measures are below par.

As I have said, we have come a long way over the last 3 years, but we cannot become complacent – indeed it is important we continue to improve.

Our network (your network) has developed a reputation for being amongst the very best, but we want to be THE best.

BUILDING A PICTURE OF INDIVIDUAL BUSINESS QUALITY It is well documented that product providers use such data to determine the viability of panel appointment for a firm or an individual, with the potential for panel removal where a serious issue comes to light.

the face of difficult situations. But we can only do this effectively if our members work with us to comply with our sales process. To this end I wanted to use this opportunity to reiterate key components: • Always gather documents to verify the customers identity, their income and outgoings BEFORE submitting an application

As a network we use this information alongside the understanding we obtain from file reviews to build up a picture of the capability and attitude to business quality of each individual; these two elements (provider data and file review outcomes) will form a key part of our ongoing assessment of competence.

• Take care to check the documents thoroughly and that application forms are completed accurately

It is therefore crucial that advisers always operate within the sales process. For mortgage applications, collection of customer income documents and bank statements at the earliest stage (certainly prior to submission of application), is so important. But more than merely collecting the documents, it is vital that they are checked and cross referenced to the information provided by the customer.

• Take care to ensure customer documents are ‘real’; if in doubt, check them out!

• Do the payslips/tax assessments match the income declared?

• Does the way income is paid into the bank account seem unusual?

• Are there any significant outgoings on the bank statement that need further questioning: loans, subscriptions, household bills, etc.?

• Does the income and job seem plausible?

• Do the documents support what is stated on the DIP or application form?

I also cannot stress enough how important it is that application forms are completed accurately.

No rounding up of figures and never submit an application without having sight of documents to support the figures verbally given by the customer.

KEY POINTS TO KEEP IN MIND I have repeatedly stated that my view is that the Network’s compliance function is here to help keep our members safe. We will work hard to support each individual in the network, even in

Call: 03300 552 651 Email: support@hlpartnership.co.uk

• For insurance applications, ensure you ask every question relevant to the underwriting the application, record the answer and ask the customer to double check

• Create a record on the CRM and maintain it in real time, uploading documents and adding notes on anything ‘unusual’. This should certainly be no later than at submission stage • Where additional due diligence is carried out, record it on the system and mention it on the application • Continue to maintain the CRM record, particularly any conversations or ‘agreements’ made with a lender • Where providers require additional supporting documents, submit them quickly • If a client decides not to proceed, cancel the application with the provider and let them know why

If you are ever contacted directly by a lender or insurance company about the quality of your business, then you should report this immediately to your Regional Compliance Manager so that we can support you.

I urge you to take care in your dealings with product providers and consider the points above.

Remember that each provider will be looking at your performance and reporting it to the network if it is below par. We will work with you to help develop business quality standards.

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ver recent years there has been much talk about how Equity Release will be the “Next Big Thing” in mortgage world. It’s taken a while but at last momentum seems to be gathering with innovation leading the way.

In 2018 we saw total lending to those looking to take advantage of equity in their home nudge £4bn and the consensus amongst industry commentators is that this upward trend will continue – with greater speed that many originally thought possible. The team at HL Partnership have believed for several years that later life lending will become core to many adviser’s propositions with the result that education and support processes have been embedded in the Network for members who share the belief and want to help what is an ever growing customer base.

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But is now the time to really raise your Later Life Lending game?

HLP ran two Later Life Lending Workshops earlier this year and have now announced a further three events in September. These are designed not just for authorised advisers but also for those who may be thinking about becoming more serious in this market and need more information on what’s involved. The workshops are in Leeds, Hinckley and Central London on 10, 11 and 12 September. To support the proposition HLP the role of Later Life Lending Manager has been created specifically to look at how HLP’s proposition needs to develop in line with the market, and to work more closely with members helping them maximise the opportunities on offer.

This role brings with it a passion and advocacy for Later Life Lending developed over many years.

Investment from the Network doesn’t stop there.

Time to (Re)Consider Later Life Lending?

For those advisers that recognise the opportunity, HLP actively assist members in passing the relevant qualifications and encourage all to follow a simple and straightforward path to competency.

For those who feel later life lending is not for them, there is a simple referral process to advisers within the Network who are already practicing exemplary Lifetime mortgage advice standards. But of course later life lending is not limited to Equity Release. Recognising the innovation of first charge lenders, HLP is one of the first Networks to enable its members to advise on Retirement Interest Only (RIO) products with their current mortgage permissions. So members have a lending solution that follows the customer from cradle to grave, from first time buyer, to last time buyer, from later life lending to equity release, an advice process flexible enough to meet all customer needs.

A Forward Thinking Network.

HLP has a Later Life Lending Compliance Manager specifically focused on giving specialist advisers the compliance and technical backup they need and require to ensure all parts of the advice process lead to a great customer outcome. HLP have firmly committed resource and investment to support the growth its anticipated in this market.

All of this is with one aim. The intention is to make HLP the network of choice for advisers in the later life market. Its intention is to help existing practioners grow their business and, for those just starting out, how to develop business, support and protect them on their journey to later life lending success.

Watch this space, the website and inbox for more information – and of course we welcome feedback from those who need more insight and help.

We’re ready to grow Later Life Lending, are you?

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Sue Read Later Life Lending Manager

All of this is with one aim. The intention is to make HLP the network of choice for advisers in the later life market.

Call: 03300 552 651 Email: support@hlpartnership.co.uk

The fourth emergency service 08

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n a recent study into the reasons why or anyone who has broken down in their car, the sight of an AA, RAC or Green Flag van coming to your rescue is a real relief. Customer’s perceptions of the service led the AA to call themselves the 4th emergency service behind the Police, Ambulance and Fire Services. If you are sat on the hard shoulder of a motorway or in a layby miles away from anywhere then I’m sure you would agree.

What do these services offer? Expertise, reassurance, and ultimately the help to get home, a place where there is time to consider the implications of the breakdown safe in the knowledge that you are back in a place that offers protection. Interesting there are plenty of analogies with our own protection industry in as much that not everyone believes that there car is going to break down in the same way that not everyone believes they may get cancer and therefore not everyone has breakdown cover. Indeed if you asked a driver what they think would happen if their car broke down and they didn’t have breakdown cover I’m sure the answer would be the Police

A Forward Thinking Network.

would be along in a minute or perhaps a family member would help out. But in reality does this happen?

We have seen the news that villages are losing their GP surgeries, there has been criticism of the 111 service, and the NHS is under pressure so what happens if your body breaks down, your family finances stop working or some major incident causes your family life to crash? Rising instances of Cancer, Diabetes and Dementia hot the news every day but who is there to help at a time of need, who is wearing that hi-vis jacket that gives so much reassurance?

Insurers publish their claims statistics every year proving that those who recognise that breakdowns in personal and family life do happen, and those that have to pick up the phone to their insurer have the right support and help to get back on the road to recovery both physically and mentally. Indeed many insurers have developed services that try to keep the engine house moving forward but do we talk about them? For many the best policy is the one you never have to claim on, but claim and use are very different words. Rehabilitation, counselling, physiotherapy, back to work help, doctor services,

Neil Hoare Commercial Director

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nurse services, confidential and medically trained call centres, are all becoming commonplace as insurers recognise that the moment of truth doesn’t have to happen when the money is paid out. All are services that can come to the aid of someone who just wants to be secure in their home, surrounded by family, safe in the knowledge that they have expertise on hand to keep the life blood of the house hold moving.

solution at every appointment they attend may have had a car break down on them in past. These advisers are good at explaining what can be done when a complicated machine such as the body or mind breaks down and are able to paint the picture, that the emergency services are there and probably for a lot less money than it takes to keep the lump of metal parked on the drive, on the road.

There are very few of us in the UK that have not seen a car broken down at the side of the road, indeed there are a number who have been that person standing forlornly waiting. And its quietly like that advisers who recommend a protection

Is it time for advisers in the protection market to see themselves as the people who keep the individual and the family running smoothly, keep kicking the tyres, keep checking the oil and ultimately deliver a five star service.

Call: 03300 552 651 Email: support@hlpartnership.co.uk

Now there’s a better way

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uardian is a famous name in financial services with a long history helping to protect families since 1821.

We’re delighted to bring this 198-year-old brand back to life.

We re-entered the market in August last year with a single ambition; for every family to have protection that they truly believe in. We believe the only way to achieve that is if protection is sold with quality advice. That’s why we work exclusively with advisers

At Guardian we’re challenging the status quo so advisers have a real choice – a choice between the typical way and what we believe is a better way. For us, ‘better’ isn’t about changing one big thing. It’s about improving lots of little things that collectively make a big difference. 3 examples are:

• Terminal Illness: Our Life Protection doesn’t only pay out if your clients are expected to survive for less than 12 months. We guarantee to pay out immediately if your client is diagnosed with stage 4 cancer, motor neurone disease, Creutzfeldt-Jakob disease and Parkinson-plus syndrome, even if life expectancy is more than 12 months.

• Built-in waiver: Premium Waiver comes as standard – at no extra cost. And we don’t just waive premiums if your clients are too ill to work; we also waive them for up to 6 months after they’ve had a baby, or if they’re made redundant.

• Children’s Critical Illness Protection: We don’t think it’s fair for customers to pay for cover they don’t need. That’s why our Children’s Critical Illness Protection is an optional extra, added on to either Life Protection or Critical Illness Protection.

To discover more about Guardian and register to submit business, visit: https://adviser.guardian1821.co.uk/

Fluent for Advisers can help your customers and save you time and money

In this example, Fluent for Advisers was able to make use of its long and successful working ties with a lender to provide a positive solution to the needs of an adviser’s customer.

The Case: The customer required a loan to consolidate unsecured credit facilities and secured against his UK property. The total LTV would be 85% of the property value.

The Issue: Although as a marine engineer the customer’s affordability was beyond question, he worked in Norway and was paid in Norwegian krone, which officially placed him outside of all lenders’ criteria.

We referred the case on a prime rate with a major lender who initially declined the application as the client was not paid in sterling.

The Result: However, as a result of our special relationship with the lender, we managed to speak with their senior management who agreed to accept the case as a one-off.

The case completed within 9 days from the lender referral. Without our special links with this lender, the case most certainly would not have proceeded.

The customer managed to clear his expensive unsecured credit and saved himself a significant amount per month and was delighted that we could help and the speed with which the whole process was completed.

If you are ever asked why you should deal with Fluent for Advisers, here are the reasons.

• Whole of Market lender panel • CeMap qualified staff • Close relationships with lender panel • Unrivalled specialist knowledge of the second charge sector • Part of the UK’s largest second charge distributor

Grow your business

Refer your secured loan enquiries to Fluent

01204 472030

brokerteam@fluentforadvisers.co.uk I www.fluentforadvisers.co.uk This advert is for professional Intermediaries only and has not been approved for customer use.

Fluent For Advisers is a Master broker and we will search our panel of lenders to find the right loan for your client.

Fluent For Advisers will be processing the loan application. Data Protection register Number: 29868049. Fluent for Advisers is an authorised trading style of Fluent Money.

Fluent Money is authorised and regulated by the Financial Control Authority. Firm registration number 654425.

Fluent Money Ltd Company registration number 06200496. Registered Office: 102 Rivington House, Chorley New Road, Horwich, Bolton Lancashire BL6 5UE

Jeff Davidson, Head of Intermediaries

There are many reasons to refer clients to Fluent for Advisers for your second charge needs. Apart from the advantage of having access to Fluent’s whole of market lending panel and the specialist knowledge that you can tap into at any time, the one aspect that cannot be replicated by any but the most experienced adviser firms is the depth of relationship we have with our lender panel.

Jeff Davidson, Head of intermediaries – Fluent for Advisers

A Firm View

In demand

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att Hardman, Director of The Buy to Let Broker, talks about how building a reputation as a specialist broker has enabled their business to grow despite the sector’s challenges.

How was your experience of the buy-to-let market in 2018?

Hugely positive. It showed us how adaptable landlords have become, as they try to combat tax changes and navigate new rules.

We transacted more complex business last year, such as portfolio incorporations, HMO mortgages and limited company mortgages.

Overall, our growth was strong in 2018. Of course, we deal with highly committed landlords, which we recognise isn’t necessarily representative of the whole buy-to-let sector. It’s true that some smaller landlords have moved away from the market.

What do you expect for the sector in 2019?

Some uncertainty early this year for obvious reasons. However, with many landlords only feeling the pinch as they pay their first tax bill in January 2019, under the first phase of tax changes, we expect the second wave of professional landlords seeking specialist advice.

This will be especially true in respect of landlords contemplating the benefits of incorporation, and the complexities that surround these transactions.

What are the benefits of establishing yourself in a niche sector, such as buy-to- let?

The landlord market is very under-served, with landlords often finding their current broker either can’t handle, or prefers not to take on, the more complex transactions. This means that specialists who really understand the market are in great demand right now.

Buy-to-let cases are usually harder work and more of our deals are complex but, in return, there are higher proc fees. There’s also more repeat business as clients may have several buy-to-let mortgages in the background, so you have greater remortgage potential.

We have certainly developed stronger lender relationships as a result of specialising. When rule changes take place, we collaborate with lenders, piloting niche mortgages for example.

Of course, lending volumes have plateaued in buy-to-let, but we only need to support a small element of the overall market in order to grow, and specialists committed to the buy-to-let sector will continue to build their market share.

What product features would you like to see in the buy-to-let market right now?

There is no specific criteria gap, as we can usually

A Forward Thinking Network.

Matt Hardman Buy-To-Let Broker find a lender for our clients. The quality of our landlords is very high – they are professional landlords, often with other sources of income as well as the rental income.

That’s not to say we can always get exactly what we want for our clients because there are certain immovable regulatory restrictions. But, in the main, we can achieve what’s required.

Having said that, I do think mainstream lenders should offer limited company mortgages – this sector of buy-to-let needs to feel more normal to every broker, not just the specialists.

Regulatory interventions have impacted on buyto-let purchase volumes. Is this the new normal?

No, I think we will see a rise in volumes of purchase business again at some point.

there is a lender who can help them. Many of our new clients have already been to a broker but been told that they can’t get a mortgage.

We can usually find a suitable deal, but we are more interested in quality business and long-term relationships than simply transactions. We want our clients to go into a deal with their eyes wide open, on tax changes for example, knowing exactly how they will be affected.

Is top-slicing, or accepting personal income, a feature that lenders now need to offer to landlords?

To a degree yes, I do think more lenders should offer it, but also brokers need to be aware of the risks to their clients. Those with the highest income are potentially going to get hit hardest by the BTL tax changes. Those top-slicing and taking higher loan amounts will have higher mortgage interest bills.

After all, the demand for private rental accommodation is still there. So if supply falls, rents will have to rise, and that will attract more potential landlords into the market again.

Clients need to be aware of the tax changes and what they will mean for them.

Property is a tangible investment preferred by many to other assets. I think purchase volumes will bounce back, although perhaps not to the peaks we have previously seen.

How do you attract new clients?

Mainly through our website, plus we have brokers that have been with us for a long time and have a strong bank of landlord clients.

What is the most common concern voiced by your landlord clients?

Right now, it’s personal tax changes – and Brexit.

The other concern for new landlords is whether

Of course, we have the benefit of the name – The Buy to Let Broker – which means people find our website easily, plus we get a lot of repeat business and referrals. We would look at referral options for brokers in the future. I think it could work well.

Call: 03300 552 651 Email: support@hlpartnership.co.uk

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Stevie Wimlett IT Development Manager

What’s New in Technology?

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s we all know technology can move at a fast pace and as a network we are pleased to use tools from market leading providers. All of whom have been busy releasing new tools and features over the course of the year. Read below for more details for these.

As always we continue to work with our software partners and there really are some exciting developments in the works to help you not only get the most out of this technology, but to help you with what you do.

360 DotNet Admin Workflow & Event Triggers This exciting new development allows you to create your own business ‘workflow’. The new automated workflow ensures that structured tasks are generated at the correct stage of the fulfilment process. For example, you can set up a process so whenever you change a mortgage status to ‘Offered’, you are then prompted to get in touch with the client to discuss their buildings and contents needs.

A Forward Thinking Network.

This tool does require configuration so if you would like to find out more please email tech@hlpartnership. co.uk who will be able to help.

The event triggers tool lets you tell the system you want something to happen when an action is completed. For example, you could set for every mortgage where you change the status to ‘Completed’, a congratulatory email is sent to the clients. Or when a fact find is submitted it is referred to another advisor to pick up another client need.

New Protection Fact Find Pages Many of you have seen by now but there are now 2 new pages within the fact find. These are ‘Protection’ and ‘Protection Needs & Shortfalls’. Please note that these pages are not mandatory as per the compliance process but they are hugely beneficial in opening up a discussion with your client for their protection needs.

Protection can occasionally be hard to approach but these new questions have been designed to help you approach certain ‘what-if’ scenarios with your client in a careful and caring manner.

Be sure to make use of the reports available in SolutionBuilder that take the new questions in the fact find and puts them into a professional handout for your client.

Twenty7Tec Twenty7Tec have made some improvements to their standalone MortgageSource system. You are now able to configure sourcing columns to your own preferences, including the order you want you see the columns in. These preferences are then saved for future. You can also now record details of any repossessions your client may have had.

The way True Cost is calculated has also been improved and you can now select individual fees you wish (or don’t wish) to be included in the true cost.

We are also working with Twenty7Tec trialling their new MortageApply system. MortgageApply is the tool that will allow you to submit a mortgage application from the sourcing system itself direct to the lender. There are a handful of lenders live at the moment, with more to go live through the remainder of this year. We will of course keep you

Call: 03300 552 651 Email: support@hlpartnership.co.uk

posted on these developments and go-live dates.

If you haven’t already got access to standalone Twenty7Tec sourcing, now is the time to do so. We are nearing release of a new integration between Twenty7Tec and 360 Dotnet, giving you an alternative way to source your mortgages. As well as this when MortgageApply is live, standalone access will be the quickest and easiest way for you to benefit from the tool. Simply email tech@ hlpartnership and we will get you setup.

Ipipeline One of the new changes in Ipipelines SolutionBuilder system is that the indicative quote is now present on all requirement pages. You (and if you chose to show them, your client), can see how certain protection additions effect the potential premium amount.

The ‘View More Cover Areas’ of a SolutionBuilder requirement has also been improved. Figures are now shown in monetary values as opposed to previously just percentages.

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Niki Cooke Head of Intermediary

W

hen digital transformation is done right, it’s like a caterpillar turning into a butterfly, but when done wrong, all you have is a really fast caterpillar.” (George Westerman - Principal Research Scientist - MIT Sloan Initiative on the Digital Economy.)

Now as much as a fast caterpillar speeding along would be an interesting sight to see, it shouldn’t be the limit of our aspirations.

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This certainly resonates within the mortgage world.

Over the last few years innovation has pretty much stood still. The intentions are there to digitalise the mortgage journey but how much of this has really taken place?

Consumer expectations are firmly set. They expect to be able to get from A to B as quickly and seamlessly as possible……or quite frankly they, don’t have the time and patience to wait. For example, they expect to seamlessly purchase an airline ticket within minutes, they expect to order their goods online and have them delivered the next day. So why is it so different in the mortgage world? The great strength of a good mortgage broker is the ability to relate to clients on a personal level, and to turn a conversation about needs into the right mortgage solution.

And the very important asset within your business, your staff. The investment in time to train them means you want to ensure they are there for the long term. Gallup research shows that people are happiest and most engaged when they apply their strengths to their job.

...like a caterpillar

So, what are the expectations for you as a principal / mortgage broker when it comes to mortgage digital transformation? Do you want to make that transactional journey a lot easier for your customers? Do you want to remove as much paper from the journey as possible? Do you want to make the process as automated as you can?

A Forward Thinking Network.

Instead of changing people to fit the job, great managers try to put the right people in the jobs in which they can perform well.

At Twenty7tec, we are constantly anticipating the expectations of the mortgage world. In our last article in the ‘Inspiration’ magazine January 2019, we stated that MortgageApply is the future of application submission. This, we are delighted to confirm, has now become a reality!

We have now successfully launched MortgageApply with 5 lenders, with a further 15 lenders expected to go live by the end of 2019, and many more beyond this. The solution is tried and tested and is already bringing fantastic efficiencies to the mortgage world.

So, how will this meet expectations detailed above?

MortgageApply means application submission.

Seamlessly submitting and tracking mortgage applications at the touch of a button, direct from our sourcing system. MortgageApply utilises the rich product data we hold, combines it with your factfind data and documents, then securely packages and transmits everything direct to the lender. Allowing you to DIP, FMA, and track your application from a single system, across multiple lenders. MortgageApply is there to completely remove the need to re-key data into a lender’s portal. Simpler for you, quicker for the client.

We are working closely with 360.net to roll MortgageApply out as soon as possible. As soon as it is live for HLP firms over the coming months, we have a fantastic team of Regional Account Managers, who are there to fully support your firm and your staff with in-depth training via webinar or face to face visits.

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Together, HLP, 360 and Twenty7tec are transforming the mortgage world, with technology that enables you to meet your customers’ expectations, ultimately saving you time and increasing revenue:

turning into a butterfly...

As member with HLP, your expectations of utilising the data and documents you have within your CRM system to apply for a mortgage as one will now become a reality. Your customers’ expectations have been met by you having the visibility of communicating what is happening with their important transaction immediately.

Call: 03300 552 651 Email: support@hlpartnership.co.uk

• Giving you time to spend advising your clients rather than completing paper factfinds, discussing their financial requirements such as protection and general insurance.

• Increased choice of how you use your time • Providing your valued staff with a varied role, instead of just keying data, and calling lenders to also chase applications! Creating a long loyal career.

Twenyt7tec are turning that fast caterpillar into a beautiful butterfly……a win win outcome for all!

A

s the technology powering HLP_MSN Conveyancing, there’s a good chance you will have heard of eConveyancer, or ULS technology. We’ve been working closely with advisers, conveyancers and home movers for the last 15 years, and pride ourselves on delivering value and quality to everyone involved.

One name you may not recognise though, is DigitalMove – our new platform which delivers even greater value and quality to those involved in the process.

the conveyancing industry by asking one simple question: ‘how can we make the home moving experience better for everyone?’ DigitalMove is our answer.

If you do recognise the name and have been following DigitalMove over the past few weeks, you will have seen us beating our own record time for starter pack completion on a conveyancing case. You will have also seen us share a raft of exceptionally positive feedback from advisers, conveyancers and home movers alike. For those who haven’t been following us, allow me to formally introduce you to DigitalMove.

Home movers expect a simple digital journey, accessible on desktop, tablet and mobile devices, providing all the information they need to feel comfortable and confident at their fingertips. A modern, clean user interface and intuitive design helps users navigate their list of tasks, upload and digitally sign documentation and chat directly with their conveyancer.

With DigitalMove, we’re bringing all stakeholders in the home moving journey closer together, helping them communicate, transact securely and speed up the conveyancing process. As a centralised platform, we are moving away from vulnerable email communications which fraudsters prey on, instead offering secure messaging and case updates through a digital portal.

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Over the last 18 months, our team at ULS technology have been challenging the norms in

A Forward Thinking Network.

So far, we’ve seen the time taken to complete starter pack documentation plummet from days to minutes – it’s now possible for home movers to

receive their pack, complete and return it to their conveyancer in 21 minutes, our current record. It’s not just the beginning of the process that’s quicker, with our record for instruction to completion at just 36 days. To put this in context, the average conveyancing case reaches completion somewhere around 15 weeks after Instruction, in instances where DigitalMove is not utilised.

Through HLP_MSN Conveyancing you already have access to over 100 conveyancers across the UK, with specialist conveyancing options available for Limited Company Buy-to-Let, Help-to-Buy and Cashback Remortgage cases. With the arrival of DigitalMove, HLP_MSN Conveyancing advisers are well placed to offer a truly market-leading service to home movers.

A better home moving process for everyone

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Steve Goodall, CEO of ULS technology

DigitalMove delivers benefits for advisers Not everyone is fortunate enough to have access to DigitalMove right now, however as an HLP_MSN Conveyancing adviser you will soon be able to instruct DigitalMove cases for your customers.

Being able to offer a DigitalMove journey provides a competitive advantage over non-DigitalMove advisers, helping your cases to progress more quickly. Ultimately, less time spent chasing and emailing and more time to take on new cases.

Call: 03300 552 651 Email: support@hlpartnership.co.uk

For more information on HLP_MSN Conveyancing or DigitalMove, contact your National Account Manager, Matt Brown on 07464 547574 or by emailing mattbrown@ulstechnology.com

Follow DigitalMove on Twitter (@DigitalMoveUK) and on LinkedIn (digitalmoveuk) to get the latest updates.

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Ask the trainer…

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Pipeline’s Chantel McGill trains advisers on SolutionBuilder, our award-winning protection sourcing solution. Here she answers advisers ‘ top 4 most commonly asked questions since the start of the year, enabling them to efficiently research, quote and apply.

You can however change this once you press the Apply button through to Aviva’s site. Legal & General automatically returns Standard Child’s CI on all their quotes. You can remove this or increase this to Extra Child’s CI once you press the Apply button through to L&G’s site. Both Vitality & Zurich return their quotes without Child’s CI and this can be added on at an extra cost once you have pressed the Apply button and go through to their sites. If you are unsure of whether or not this is included in the quote, please double check the illustration.

1. How do I add Children’s CI to a policy?

Each Provider returns differently with regards to Children’s CI. Providers such as AIG and LV offer Children’s CI inclusive with no further cost to your client. Royal London return 3 separate results in SolutionBuilder showing a quote for No Child’s CI, Standard Child’s CI & Enhanced Child’s CI. Aviva automatically returns Standard Child’s CI on their standard product & Upgraded Child’s CI on their Upgraded product.

A Forward Thinking Network.

2. How can I quote on dual deferred/stepped benefit for Income Protection?

If you quote on the total amount and first deferred period in SolutionBuilder then once you are on the quote results screen, dual

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Chantel McGill Business Development Consultant, iPipeline

deferred/ stepped benefit is available using a Single Benefit Income Protection (as shown in the images above). If you select the dropdown menu to the right of the comparison cell and select Detailed Quote, this will open the detailed quote service in a new tab. Select Policy Basis and you will have an option for Dual Deferred Periods required; select yes and enter the Initial Monthly Benefit Amount and Initial Deferred Period followed by Additional Monthly Benefit Amount & Additional Deferred Period. Select Quote and this will then provide you will the correct illustration under Details and View.

3. How do I amend the deferred period on Waiver of Premium for a Term benefit?

Waiver of Premium can be added within

Call: 03300 552 651 Email: support@hlpartnership.co.uk

SolutionBuilder in the Benefit Details screen for each individual benefit. However, the standard default is 6 months so if the provider offers a different deferred period this can be changed if you select the apply option. Not all providers offer different deferred periods.

4. How do I produce a Decreasing Life Quote with Level CI?

To produce a Decreasing Life Quote with Level CI, you will need to add two separate benefits into SolutionBuilder. You can use our Additional Cover Options/Matrix to change the benefits to a suitable premium for your client.

Interested to find out more about SolutionBuilder?

Sign up for our on demand webinar.

A Firm View

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Exciting times ahead for Equity Release

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ith the latest market figures highlighting how rapidly the equity release market is growing, with little sign of this subsiding, makes it an exciting time to be working in equity release.

Here at the Equity Release Advice Centre we are nationwide Equity Release specialists providing full advice both over the phone and face to face. We receive exclusive schemes from our lender partners and provide you with an industry leading 60% share of already enhanced commission.

Most of our new business comes from referrals - recommendations from clients, their friends and their families. We are very proud of this fact, and always keep client service at the top of our agenda. It’s always a pleasure to get recommendations, and direct business from our industry peers, who acknowledge our

A Forward Thinking Network.

nationwide reputation for our specialist expert advice in Equity Release.

We are dedicated to helping HLP Advisers enter the market. Working in Partnership with the Equity Release Advice Centre will provide you with the ability to access this lucrative market, without the compliance responsibility or the need to take further qualifications. Right now we have advisers just like you who are referring clients to us and earning an average commission of £1,200.

In 2018 lending in equity release jumped by 29 per cent to £3.94bn, compared with the previous year and is nearly double that of 2016. The expansion has been put down to an increasing elderly population who may not have enough to live on, as well as more product innovation and availability.

There are certainly exciting times ahead for those already working in Equity Release or

Shaun Evans CEO Equity Release Advice Centre

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looking to enter into it. Here is what David Burrowes, ERC Chairman had to say recently: “The market continues to grow as older homeowners realise property wealth can play a crucial role in supporting their retirement alongside pensions, savings and other assets.

“With new entrants and an expanding range of innovative products, this is an exciting time.

“While equity release will not suit everyone, it should be on every homeowner’s checklist when planning their later-life finances. For advisers, it will also be important to take a holistic approach to helping clients navigate later-life financial planning.”

We believe, as do many experts, that equity release provides a great opportunity for brokers to expand their business. With the risks and complex nature, expert advice is required, which opens the door for mortgage brokers or any type of financial adviser to identify the opportunities both within their own client banks and new business.

Call: 03300 552 651 Email: support@hlpartnership.co.uk

There are many uses for equity release however over the last 12 months more than 50% of our referral business has been brokers referring their clients to clear off their interest only mortgage through Equity Release.

The benefit to you is that you can earn a significant additional income (60% of already enhanced commission) from your existing clients who you identify as requiring Equity Release as the solution to their needs. You also continue to have a happy customer that you have enabled to stay in their property.

If you are looking to enter into this booming market but need support and guidance to help you through, we will provide our years of experience, support and technology plus industry leading enhanced commissions, to give you the skills and confidence required to increase your income significantly.

If you would like to find out more call Alistair Jameson on 01257 226654 and see how we can help you.

Bob Haselip Operations Director

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I

n a customer-facing industry, sometimes things will go wrong that will lead the customer to make a complaint. Particularly with complex and emotive transactions, if things don’t go the way they should, the customer may want to have their feelings heard.

Customers are well within their rights to express their frustrations but that is not necessarily a bad thing. Handled properly, a complaint can be a positive experience and do much to repair relationships and protect the reputation of the business. On the other hand, a complaint that is handled poorly, can do irreparable damage to a business’ reputation and can cost considerably more than it would have done otherwise.

When a complaint is received, all too often the initial reaction of the adviser is to become defensive, even argumentative. And it can be difficult for someone to be objective and dispassionate about a situation when there is an accusation that they have done something wrong.

A Forward Thinking Network.

That is where having a network with a good, robust complaints management process will really help from the start.

Firstly, it provides a bit of distance for the adviser and can take the pressure and emotion out of the situation. That distance and the fact that the customer is dealing with someone they’ve not dealt with as part of the initial transaction, often helps diffuse the problem and we can normally get to the route cause of the problem far more quickly.

And that too can also help customers be more objective about what would resolve the situation.

The other advantage with a structure complaints process is that it provides comfort to the customer that their concerns will be dealt with properly and gives them an understanding of what to expect throughout the process. Being calm and open about this will help give customers faith that they will be treated fairly and not just brushed off as the defensive barriers come up. That is particularly important where a complaint is rejected.

Customers are far more accepting of a resolution

Complaints – Positive or negative?

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if they feel they’ve been dealt with properly, even though we may not agree with their complaint.

And if the customer feels they are being listened to and taken seriously, they will be much more understanding where things have gone wrong.

After all, mistakes happen – it’s how the mistake is then dealt with that is key.

This approach to complaints handling is vital when we write our final response letters. It’s not just about whether we uphold their complaint or not; we want the customer to understand why we have reached a particular decision, and for them to know that the investigation has been carried out thoroughly and professionally. As a result, we have numerous examples of complaints where we’ve managed to preserve the adviser / customer relationship, leading to further business being written.

So from a customer perspective, complaints can be a positive experience when handled correctly but what can businesses get from complaints?

Well, complaints provide valuable insights into how a business operates and can highlight areas for

Call: 03300 552 651 Email: support@hlpartnership.co.uk

improvement. Even where a complaint is rejected, there can be learning points.

For example: We often get complaints which result purely from simple mis-understandings. Nothing has gone wrong so the complaint gets rejected but how could similar mis-understandings be avoided in future?

All complaints should be looked at by the business with a critical eye to see what could be improved.

An adjustment to a suitability report, a different way of wording something, introducing a checklist are just some ways the firm could easily reduce the risk of further complaints.

At the end of the day, no one wants complaints so any steps a business can take to reduce the chance of getting a complaint is a good thing. Of course complaints cannot be completely avoided as things do go wrong sometimes but at least when it does, there is the comfort that the network is there to resolve the situation.

A Firm View

The Newbuild 26

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he Help to Buy scheme has just passed its sixth anniversary and is still going strong. The scheme which started in April 2013 has helped over 210,000* people get on the property ladder through buying a newbuild property.

There are those detractors who believe that only developers gain from such a scheme, but my experience has been a positive one in helping people navigate the scheme and the house buying process to enable them to own their own home.

With lenders not prepared to offer much guidance on the schemes it is a great opportunity for brokers to capitalise on this market and show what a difference a broker can make. With major changes announced to the scheme last year, which come into effect in 2021 and 2023 it is important to understand the changes, so you can advise your clients accordingly. At the same time other schemes are available to help people on to the property ladder, some of which, such as fixed equity schemes, are seeing greater uptake.

The announcements made last year will mean that from 2021 the Help to Buy scheme will only

A Forward Thinking Network.

be available to First Time Buyers. As this has been the main applicants for the scheme this is seen as positive; however, at the same time the maximum property price outside London will be changed.

At present the scheme has a maximum purchase price of £600k through England; from 2021 regional price caps will be implemented reflecting 150% of the average house price in the region. Based on last year’s figures this would mean for example the West Midlands would have a maximum purchase price of only £255K! London will retain the existing maximum of £600K. So, although it may seem the scheme will only have minor changes, the price cap will have a major impact on completions using the scheme. Suffice it to say I do not see many properties in the West Midlands that fall within this cap at the moment.

The next major change will be in 2023 when the scheme is set to end. We all expect to see a surge of people wanting to use the scheme before 2021 and 2023. However, as a government scheme this is a long time in Politics so who knows and watch this space.

With all the press over the years about Help to Buy, other schemes tend to get forgotten, but again are a great way of showing your expertise.

Shared Ownership has been around for decades, also known as ‘Part Buy, Part Rent’ and is seeing a

Peter Edmonds Managing Director Central Financial Services

Market renaissance. However, many people shy away from these cases which is understandable, but here are a few pointers: You need to ensure they purchasers meet the Shared Ownership affordability model as well as the lenders affordability. The calculator can be obtained here: https://www.gov.uk/guidance/ capital-funding-guide/1-help-to-buy-sharedownership#affordability Remember to include Service Charges and Ground Rent (Houses will also be Leasehold) They cannot own another property

As a broker that focuses on Newbuild we are seeing more Fixed Equity (also known as Discounted Open Market Valuation) schemes. These schemes allow purchasers to buy a newbuild at a fixed percentage below the open market value. The lender will treat the valuation/purchase price as the discounted figure and all loan-to-values will be based on this lower figure. It is important to understand the terms of the particular scheme, as most have restrictive

Call: 03300 552 651 Email: support@hlpartnership.co.uk

covenants such as only being able to resell the property to another FTB or someone in the local area. The fixed equity is usually held in perpetuity, so the next buyer can have the same advantage.

Please note only certain lenders will offer mortgages on these schemes and this again will be based on the scheme. The schemes are often administered through a Parish Council, which can allow for a variety of clauses and conditions.

When you come across new clients for these schemes they will most probably be already be dealing with the developer. We all know that most developers work with nominated brokers, like CFS, but there is no reason why you can not help the purchaser and try to build a rapport with the developer. Like any other relationship this can take time and is built on trust. Communication and timescales are key components to a happy relationship, but instead of just the purchasers you have another stakeholder the developer.

The UK has an urgent need of more homes, some might say the wrong type of homes are being built at the moment, but either way this will stay a growth market as developers need to sell homes and lenders need to make money!

* Ministry of Housing, Communities and Local Government, Housing Statistical Review 2019

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Developments in the 28

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n the last decade, the mortgage market has undergone somewhat of a transformation. Following the financial crash and subsequent introduction of the Mortgage Market Review in 2014, lenders, brokers and the mortgage industry were tasked with engaging with consumers in a totally new way.

Innovation from all areas of the market has helped to ensure thousands more borrowers have made their way onto – and up – the property ladder. This, alongside historically low rates on products which have stemmed not only from a low interest rate environment but also increased competition between lenders.

The specialist lending sector, for instance, has flourished in the past ten years – helping those with weakened credit histories, or income streams that don’t meet the requirements of mainstream lenders.

A Forward Thinking Network.

The market has also had to react to shifting consumer demands. Growing house prices have squeezed affordability for many buyers and for first time buyers especially in London and the South East, the support needed from the mortgage market has never been greater.

It’s now commonplace to see high Loan-toValue (LTV) mortgages from lenders, with some now offering products from 95%. Products that allow for joint owner, single proprietor have also helped many onto the ladder.

With an increasingly ageing population, the later life lending market has also grown dramatically.

Lifetime mortgages are now the fastest growing part of the mortgage market, having become the preferred way for over-55s to unlock their substantial housing wealth. With Retirement Interest-Only mortgages providing a valuable option to older homeowners that are committed to Interest-Only products but need access to additional borrowing.

mortgage market 29

We’re also seeing the start of another major turning point in the mortgage market. The role that technology can now play is changing the face of the sector, which up until this point has relied on human touch alone. New systems such as Legal & General Mortgage Club’s SmartrCriteria - which provides brokers with access to a wide range of criteria and follow up questions, to arrive at the best possible outcome for their clients as quickly as possible – are improving the efficiency and accuracy with which brokers can address consumer demand.

However, other areas of the market are still to benefit from technology. The ID and Verification process for example, is still powered by the manual submission of physical and original documentation to brokers or lenders – a clear dogleg.

Call: 03300 552 651 Email: support@hlpartnership.co.uk

Danny Belton, Head of Lender Relationships, L&G Mortgage Club

Of course, we are operating in what remains a complex area and face-to-face discussions will always play a huge role in the advice process.

As with anything, technology in the mortgage market will need time to integrate and develop and it will be interesting to see over the next five to ten years the impact it has on the industry.

With the introduction of Open Banking and the rise of aggregators, it is more important than ever that brokers maintain contact with their clients and ensure they are their first port of call.

Ken O’Callaghan Marketing Manager

Launch a website that is optimised to convert leads

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t’s time to move on from your typical “digital brochure” style mortgage website that usually has a bunch of stuff to read, a few pictures and if you are lucky, a mortgage calculator. If your website doesn’t have specific actions for visitors to take, do not expect your website to be adding real value to your business.

In fact, using a digital brochure style website or not having a website at all is a primary reason why so many mortgage & protection professionals struggle with their marketing – both online and offline.

One of the most common themes that I hear from advisers is that they have a website but it isn’t generating leads for them.

In order for your mortgage advice website to produce business, it needs to be powered by “conversion rate optimisation” also known as CRO. This sounds complicated, but it really isn’t. In simple terms, it is a method that allows you to increase the percentage of site visitors who convert into customers, or more specifically, take a desired action on a website or landing page.

Just because a website looks nice doesn’t mean its capable of generating business. If it’s not built to convert traffic or leads, then it’s costing you clients. In a world where you can make on average, £1000 per case, just a handful of lost opportunities is a big deal.

If you look at the stats of the journey that customers

A Forward Thinking Network.

take when buying or moving to a new home and are looking to get a mortgage, I can guarantee you that 90% will be researching online. This means that your web presence is crucial to generating value to your business. You need to control what comes up in the search engines when potential clients are searching for your business and use conversion rate optimisation to turn clicks into qualified leads, not just brochure style information on mortgages.

CRO should not be confused with Search Engine Optimisation (SEO), SEO is great at generating traffic to your site, not so much at generating leads. You need to be able to turn that traffic into leads and collect customer data that can be used to market to them in the long run, using channels such as direct mail, email and telephone.

You must start with a foundation that is built to capture and convert qualified leads, and your marketing will see greater returns on investment. You will be getting traffic to your website without you actively seeking it, your customers are finding your website from organic search results, social media and business cards. They are not turning into qualified leads because you are not using CRO correctly.

Take a look at your google analytics account, if you look at the traffic on your website, I bet you there is significantly more traffic than business you have acquired. If you turned just an extra 10% of that traffic into leads you will be adding huge value to your advice business. I often hear advisers say “but I have a contact us form”, this is not a lead generator.

Contact forms alone are about as useful as a chocolate teapot for providing a steady flow of leads.

Ok, so how do I create a website that adds business value?

Some good news at last, to launch a commanding mortgage website that generates leads for you, it’s a relatively easy fix, there is no need to reinvent the wheel. I will provide you some examples of ways in which you can convert your website traffic into leads.

Start by creating landing pages Lead capture landing pages are used to capture potential client information such as contact info and details regarding their requirements. To qualify as a lead capture page, the landing page must contain a contact form, along with a call to action and a description of what the user will receive for providing their personal information when submitting the form.

Let’s apply this to a real-life example. Hypothetically speaking, if I set up a mortgage & protection advice company called Kenneth’s Mortgages, how would I use lead capture landing pages to generate leads? The below graphic (figure 1.0) shows you how I would do this for first time buyers. I would

Figure 1.0

recommend that each of your information pages are turned into landing pages to include a lead capture form. The trick is to tailor it to the subject matter for example, the data that is captured on the remortgage page is relevant to remortgages.

By capturing data like this, it allows clicks to turn into real people and opens up avenues of conversations between your mortgage advice business and your website visitors. I would advise having some fun and getting creative with the ways that you encourage conversations with your website visitors, if it doesn’t work first time, do some A/B testing. Subtle differences in wording, colour and the look and feel can make a huge difference.

Figure 1.0 is a fictional and representative example to show an applied example of a lead capture form, as always, make sure you follow GDPR legislation and get your page approved by the compliance department. Secondly, make sure that your site is optimised on mobile. Over 50% of website views are on mobile, you do not want to segregate those users.

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Around the Network Angela Blakesley wins Best Complex Buy to Let Adviser Congratulations from everyone at HLP to Angela Blakesley on winning Best Complex Buy to Let Adviser at the British Specialist Lending.

Angela has been recognised for her consistent level of quality business over the last 12 months, strong relationships with lenders, and a great understanding of the complex buy-to-let market. Well deserved!

Viisana wins Business of the Year 2019.

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Congratulations to Viisana for winning Business of the Year at the Gatwick Diamond Business Awards 2019! Held at Effingham Park Hotel, Copthorne, the Gatwick Diamond Business Awards included finalists from avast range of businesses spanning from all sectors of the economy, such as household names, niche companies and multinationals.

Clayton Shipton shortlisted for British Mortgage Award Clayton Shipton, Managing Director of CLS Money was a finalist at the prestigious British Mortgage Awards 2019 for the ‘Business Leader: Broker (few than 10 advisers)’ award. CLS was recognised for its impressive growth, technological advancements and commanding online presence.

A Forward Thinking Network.

A big thank you

You may be aware that Gavin Earnshaw and Neil Hoare ran the London Marathon in aid of the charity Dementia Revolution this year.

research has historically been chronically underfunded – only 0.3% of its overall cost is invested in research currently hence the need for support” 33

They were part of a team of over 2,000 people who ran, walked and in the end hobbled around 26.2 miles of London streets leading the charge towards a cure for dementia. To date there has been more than £3 million raised by the runners from Dementia Revolution which has been split between Alzheimer’s Society and Alzheimer’s Research UK.

The funds raised from this one-year campaign will be used to help fund groundbreaking research at the UK Dementia Research Institute (UK DRI), which is bringing together scientists from six cutting-edge research centers across the UK with the aim of finding a cure. Between them Gavin and Neil raised over £3,500 for the charity.

Gavin says “When you become involved in supporting a charity whether it’s by raising money through sponsorship or simply by getting involved in local activities you do start to appreciate how much Charities such as Dementia Revolution support both the hard work of the scientists and the volunteers, which in turn makes a real difference to people’s lives. Indeed Dementia

Neil comments “Around 127 of the Dementia Revolution runners like us were lucky enough to have been given places to run by Virgin Money and, over the last year, through the Corporate Partnership, as a group we have raised over £291,000 – making it Virgin Money’s most successful Corporate Partnership to date. When the campaign launched last May, the charity set itself an ambitious fundraising target of £3.5million and I am happy to have played my part.

Of course this wouldn’t have been possible without the kind donations from members of the Network and representatives from Business Partners so there is a real sense of gratitude and appreciation to all those who sponsored Gavin and Neil in their runs.

There are almost one million people in the UK living with dementia, yet there are currently no treatments to slow, stop or prevent the diseases, like Alzheimer’s, that cause it. It’s hoped the research funded by the Dementia Revolution and sponsorship it has been given will lead the charge towards a cure and make lives better.

Senior Managers and Background The Senior Managers and Certification Regime (SM&CR) is already in place for the Banking sector (2016) and product providers (2018). It will now be extended to other FCA regulated (Directly Authorised) firms from 9 December 2019.

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Almost all firms will fall into the category of either a “Limited Scope” or a “Core” firm. The third category – “Enhanced” – only applies where annual income exceeds £35M. If your firm is a Partnership, a Limited Company or a Limited Liability Partnership (LLP), the firm will be classed as a “Core”.

For a Sole Trader the firm will be classed as a “Limited Scope” firm.

ACTION: firms will need to work out which category of supervision will apply – likely to be between “limited scope” and “core”.

Senior Managers Functions The SM&CR will replace the existing approved persons regime. For those firms who hold “Certified Function” (CF) positions, for example CF1 Director, this will be replaced by the new SMF3 Executive Director function.

For those firms who do not currently hold “CF” functions (e.g. sole traders), they will be given new “SMF” functions. For example, a sole trader with no employees will be required to hold the SMF16 Compliance Oversight position.

Applications for SMF will be made using the new SM&CR Form A from September 2019.

ACTION: firms will need to work out what senior manager functions are carried out within their business and then arrange with the FCA for them to become approved.

A Forward Thinking Network.

Certification Regime For firms that have staff who perform a role that could have a significant impact on customers (such as financial advisers and mortgage brokers), the firm will be subject to the Certification Regime.

Firms will also need to ensure that the individuals possess the correct qualifications, have undergone appropriate training and are assessed as competent to perform the role.

ACTION: staff performing such roles will need to be assessed and issued with a certificate by an authorised person stating that they are a fit and proper person to perform the Certification Function.

Conduct Rules All Senior Managers, Certified staff and any other members of staff (unless they are classed as “ancillary staff”) will be subject to the Conduct Rules. These conduct rules are in two “tiers”. There are nine conduct rules in total across the two tiers; tier two will only apply to Senior Managers within the firm.

ACTION: firms will need to ensure that all staff are aware of the conduct rules and how to apply them to their own performance as well as to the wider business.

Certification Regime.

Prescribed Responsibilities The FCA are implementing 5 Prescribed Responsibilities that must be given to Senior Managers. Each “SM” will be allocated between one and five Prescribed Responsibilities and will be held accountable for it/them.

The Prescribed Responsibilities are: (a) Performance by the firm of its obligations under the SMR, including implementation and oversight (b) Performance by the firm of its obligations under the Certification Regime (b-1) Performance by the firm of its obligations in respect of notifications and training of the Conduct Rules. More information on PR3 (c) Responsibility for the firm’s policies and procedures for countering the risk that the firm might be used to further financial crime (z) Responsibility for the firm’s compliance with CASS (if applicable) ACTION: firms will need to decide which Senior Managers are allocated a Prescribed Responsibility from the list and then include it in a Statement of Responsibility for that individual; this will also likely involve preparing or updating job descriptions for each Senior Manager.

Gavin Earnshaw Compliance Director

Fitness & Propriety A key feature of the SM&CR is to reinforce that firms need to take responsibility for their staff being fit and proper to do their jobs.

This includes a requirement to ensure references are collected, criminal record bureaus are checked and financial soundness is demonstrated.

ACTION: The FCA Handbook requires firms to make sure anyone performing a SMF or a Certification Function is fit and proper for their role. Once someone is in such a role, firms must assess them on an ongoing basis, and at least once a year.

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Summary The FCA is implementing the SMC&R from December 2019. It will impact on all directly authorised firms.

The most Senior Manager in a firm is responsible for taking reasonable steps to comply fully with the FCA requirements on SMC&R. There are a series of actions that need to be considered and acted upon; the FCA will expect to see evidence of how the firm and its Senior Manager(s) determined allocation of roles (Senior Manager and Certification) as well as allocating Statements of Responsibility.

Senior Managers will be responsible for ensuring the individuals in their firm apply the conduct rules. This will require firms to have clear policy and procedures for complying with FCA Conduct rules.

Finally, each individual performing a Senior Manager or Certification role will need to be formally assessed for competence as well as assessed for fitness and propriety when they join the firm and the on a regular basis.

Call: 03300 552 651 Email: support@hlpartnership.co.uk

What makes Scottish Widows Protect different?

Scottish Widows is delighted to be working with the team at HLPartnership.

One thing you will notice is the intuitive underwriting provided by Scottish Widows.

Delivering 81%* point of sale decisions for your clients, we are committed to providing access to insurance for as many people as possible. We have recently made a number of positive changes to our underwriting philosophy and acceptance criteria for customers with diabetes. We also offer terms to 95%* of clients who disclose a mental health condition, 78%* of which are offered cover on standard terms.

We also make case management easy. Our online dashboard enables you to view your pipeline cases and details of any existing policies and, should you need to speak with someone, your dedicated case handler and underwriting manager will be able to assist.

You’ll find further information on our Protect Centre including product information, industry news, expert opinion and CPD content, like our latest MasterClass on IDD and helping you prepare for the SM&CR.

If you require a dedicated webinar or face to face session on any protection related topics, we would be happy to facilitate this too.

We look forward to working with you and your teams as the Protection market evolves.

Find out more at www.scottishwidowsprotect.co.uk

*Source: Scottish Widows Protect statistics, 2018 underwriting data