Nothing makes Compliance happier than telling someone that they have passed their file check. However, this isn’t always the case, but there are things advisers can do before they submit their case for checking that will significantly increase the chances of getting GREEN.
Some of the most common reasons that prevented cases from being graded green in 2023 were:
Proof if ID: Did you know an unsigned passport is invalid? and therefore not able to be used as Proof of Identification? This is a fairly new requirement on passports, so may not be something everyone knows. Further information on this can be found here LINK.
Bank Statements: You should be able to evidence the last three months’ worth of salary credits in the bank statements you obtain from the client. If only two appear due to the dates of the statements, then you need to request an additional one to ensure yourself and Compliance can compare the three salary credits to the payslips. Further information of the minimum documents that are required on cases can be found in the Operations Manual HERE.
Amended Documents: What checks can you as an adviser do to help identify potential fraud? Have you reviewed the opening and closing balance on the bank statements? We saw several cases in 2023 where these did not match, and this is an obvious sign that something in the statement has been amended. Fuzzy logo? Another clear sign that something is off with a bank statement is that the bank’s logo appears to be blurry. Ensure you are reviewing any document you receive from a client and if anything doesn’t seem right, call the Compliance team who will be happy to review for you.
Another great way to keep ahead of fraud trends is to attend one of the many lender webinars. HSBC runs monthly webinars that every Connect Network member must attend to maintain their agency with them. Not only are these mandatory, but they are also helpful in providing great information that will help you identify possible fraud.
If it isn’t written down, it didn’t happen: Your case should tell the story of your interaction with the client. There have been many occasions where we will query or request something and it turned out that it already happened, but it just wasn’t noted on the case. If you have done extra work to verify a client’s employment, remember to upload the document or note it on the file. This causes many cases to get declined by lenders and some of these would have been accepted if the story was told.
Protection Conversation: Whilst having a protection conversation has always been part of the sales process, Consumer Duty has put even more emphasis on this requirement. It is now mandatory that every regulated case has the Insurance Your Needs section completed in full. This also needs to be completed if you aren’t doing the advice yourself and are instead referring the lead to Stonebridge.
Following the implementation of the Vouchedfor client feedback process, we have been able to get a far greater insight into potential customer detriment, and we have seen that we have many clients who would have liked to have a protection conversation but didn’t. This is why it is so important to cover off the Insurance Your Needs tab during the fact-finding process, as this will identify clients who would like to discuss protection further.
Lastly, the best thing you can do to ensure you have covered everything you should have, is by completing the File Check tab on OMS, if you have covered off every area on this tab, you are far more likely to receive a Green file check, first time.
Regards
Alan Baldwin
Director of Compliance
For any questions or queries, contact the Compliance Team
Call : 01708 676110