Richard Angliss

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Home Buyer Systems
The Next Generation Sourcing System

• Richard Angliss

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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

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FSA Regulation

• What Is the FSAs Prime Objective?
• Consumer Protection
• How Does It Do This?
• Through regulation of the sales process

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FSA Regulation

• How do they expect Principals to manage it ?
• Systems and Controls
• That are
• Effective
• Robust
• Demonstrable

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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

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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

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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
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Home Buyer System

• What are the key components?
• Point of Sale System
• Training and Competence (TC)
• Compliance Monitoring
• Embedded Treating Customers Fairly (TCF)
• Management Information

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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

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Ease of Use
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Mortgage Sales Process

• Customer Relationship Management

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Mortgage Sales Process

• Sourcing and Research

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Mortgage Sales Process

• Tick Box Compliance

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Insurance Sales Process

• Tick Box Compliance

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What Customers Say

• Home Buyer certainly assists the professional
  status of the advisor, and therefore their
  reputation. Home Buyers 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

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Training Competence

• FSA Expect
• To Find A Full TC 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

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Training Competence

• Creating Tests

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Training Competence

• Creating Tests

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Training and Competence

• Training and Competence Modules

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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

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Compliance Officer

• Control System

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Compliance Officer

• Case Checking

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Compliance Officer

• Quality Checking

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Compliance Officer

• Early Warning System

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Compliance Officer

• Direct Communication

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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
• Companys TCF policy must be demonstrable as part
  of its culture

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Treating Customers Fairly
Documentation
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Treating Customers Fairly
Documentation
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Treating Customers Fairly
Promotions Management
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Treating Customers Fairly
Complaints Management
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Treating Customers Fairly
Follow Up Management
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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

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Management Information
Reports Statistics and Risks
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Management Information
Generation of Management Information
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Management Information
Graphical Representation of MI
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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

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Other Controls
Advisor Management
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Overview of HBS
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Features
System Produced Documents
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Features

• Browse Lender Products

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Features

• View Lenders Website

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Features

• Access Lenders KFIs

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The Reality

• What Is Really Happening?

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The Reality

• What Is Really Happening?

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The Reality

• What Is Really Happening?

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The Reality

• What Is Really Happening?

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Home Buyer System

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

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Home Buyer System

• Summary
• Total Process (Mortgage GI)
• Total Checking
• Cost Effective
• Can use as a whole or modules

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Home Buyer System

• A TOTAL SOLUTION
• FOR THE NEW GI
• MORTGAGE MARKET
• The Next Generation
• Sourcing System