Richard Angliss

1. Richard Angliss Home Buyer Systems The ‘Next Generation’ Sourcing System

2. Product Overview What is a Next Generation Sourcing System? • It is simply what established sourcing systems should have evolved into, driven by regulation • For both Mortgages and General Insurance

3. FSA Regulation What Is the FSA’s Prime Objective?: • Consumer Protection How Does It Do This?: • Through regulation of the sales process

4. FSA Regulation How do they expect Principals to manage it ? • Systems and Controls That are: • Effective • Robust • Demonstrable

5. Regulated Firms What Do Regulated Firms Have To Do?: • Establish a compliant sales process for both Mortgages and General Insurance • Fully Document it • Have Systems and Controls to ensure all FSA expectations are met • Provide information in form of RMAR

6. Home Buyer System A System For Industry Professionals by Industry Professionals • 26 Years Financial Services experience • Recognised Mortgages would have to be regulated • Previous regulatory experience showed need for sales system that picks up compliance • Knew Systems and Controls Essential • 14 Years experience writing systems in Financial Services

7. What The Experts Say "This is the type of system all brokers need to ensure compliance and reduce the risks of giving advice in a regulated environment“ - Frank Eve, Managing Director, Frank Eve Consulting

8. Home Buyer System What are the key components? • Point of Sale System • Training and Competence (T&C) • Compliance Monitoring • Embedded Treating Customers Fairly (TCF) • Management Information

9. Point of Sale System Point of Sale System must have: • A clearly defined easy to use sales process • Factfinding • Affordability assessment • Sourcing • Research • Comprehensive Suitability Letter • Embedded Treating Customers Fairly (TCF) • A clear audit trail – put the file away with confidence

10. Ease of Use

11. Mortgage Sales Process Customer Relationship Management

12. Mortgage Sales Process Sourcing and Research

13. Mortgage Sales Process Tick Box Compliance

14. Insurance Sales Process Tick Box Compliance

15. What Customers Say “Home Buyer certainly assists the professional status of the advisor, and therefore their reputation. Home Buyer’s honest and trust worthy approach underlines their integrity, and the get up and go attitude screams of a dynamic approach to business. They have certainly exceeded my expectations” Lloyd Richards– Managing Director, LPR Mortgages

16. Training & Competence FSA Expect: • To Find A Full T&C Process Implemented • Evidence that it is being used • Applied to both Sales and Support staff • Results being analysed • Areas of concern addressed • Records being kept

17. Creating Tests Training & Competence

18. Creating Tests Training & Competence

19. Training and Competence Training and Competence Modules

20. Compliance System Compliance Monitoring needs to be able to check for: Quantity • Make sure the sales process has been followed and all documentation issued Quality • Check the quality of documentation especially suitability/affordability Risk • Identify and take action

21. Compliance Officer Control System

22. ComplianceOfficer Case Checking

23. ComplianceOfficer Quality Checking

24. Compliance Officer Early Warning System

25. Compliance Officer Direct Communication

26. Treating Customers Fairly Embedded Treating Customers Fairly (TCF). Which Means: • TCF must be incorporated in to the point of sale system • TCF requirements must be seen to be followed through • Company’s TCF policy must be demonstrable as part of it’s culture

27. Treating Customers Fairly Documentation

28. Treating Customers Fairly Documentation

29. Treating Customers Fairly Promotions Management

30. Treating Customers Fairly Complaints Management

31. Treating Customers Fairly Follow Up Management

32. Management Information Management Information Key To Demonstrate Management: • Are basing decisions on good data • Have information available to warn of problems or developing adverse trends • Can track results of implementation of plans • Able to track individuals as well as the whole

33. Management Information Reports Statistics and Risks

34. Management Information Generation of Management Information

35. Management Information Graphical Representation of MI

36. Other Controls Need to be able to store for each AR: • Previous Employment History • Qualifications • Fitness & Competence testing results • Training Details All of this needs to be easily accessible for audit

37. Other Controls Advisor Management

38. Overview of HBS

39. Features System Produced Documents

40. Features Browse Lender Products

41. Features View Lenders Website

42. Features Access Lenders KFI’s

43. The Reality What Is Really Happening?

44. The Reality What Is Really Happening?

45. The Reality What Is Really Happening?

46. The Reality What Is Really Happening?

47. Home Buyer System Efficiency • 100% Checking from Desk Top • Early Warning System • Robust Systems and Controls Cost • Reduces staff requirement • Minimises risk of fines

48. Home Buyer System Summary • Total Process (Mortgage & GI) • Total Checking • Cost Effective • Can use as a whole or modules

49. Home Buyer System A TOTAL SOLUTION FOR THE NEW GI & MORTGAGE MARKET The Next Generation Sourcing System