Smaller mortgage intermediary firms are being urged to look to the technology being used by bigger players in the industry to counter criticism of processes by the FSA.
MortgageStream, a supplier of mortgage business technology, argues IT already avilable in the market means there should be no excuse for not taking advantage of solutions able to firm up processes and record-keeping.
Paul Holden, sales director, says recent criticism from the regulator has specifically identified failures in product research and the ability to supply clients with appropriate and accurate documentation.
For example, findings suggest two-thirds of firms sampled did not have proper processes in place to provide suitable advice, with even mandated items such as IDDs not being presented to clients.
“The only possible explanation for this is that these firms are either unaware or under-utilising the capability of systems.”
IDDs, for example, can be easily controlled through use of generic letters produced automatically.
However, the concerns raised could easily be met by today’s technology, Holden suggests.
“Today’s client management systems and mortgage sourcing software offer advisers a lighter touch way of managing all of the documents and processes associated with the sales process. These systems are no longer the preserve of big firms with huge budgets, as in almost all cases the annual fee is covered by the commission of just a couple of cases.
"It is possible for an adviser to have his sourcing, CRM and compliance system in place and fully paid up for the entire year. Brokers really need to let the technology take the strain especially with the FSA’s renewed focus on the smaller players in the market," he adds.