Do your customers know how you are paid?

Connect - Compliance UpdateSince Connect launched the VouchedFor customer questionnaires, we have received a lot of information on what we are doing great as a Network, and what we can improve on.

One area I think we can improve on easily is communicating to customers how an adviser is paid, as this is the most raised point from customers.

From the questionnaires that have been completed so far in 2024, 28% of our customers stated that they do not know how their adviser is paid in relation to the mortgage or protection policies taken.

So, what can we do to improve this?

Firstly, there are a number of documents that customers are given that confirm exactly what advisers are paid in relation to the service they provide and the commission they will receive from the lender:

  • Terms of Business
  • ESIS
  • Offer

As well as providing your customer with these documents, you should also be taking the time to carefully present these documents and ensuring your customer is happy and understands all the key points.

You could also talk to them after and ask them a few questions so you can be sure they understand the advice being given and fees involved, try asking them:

  • Are you happy that you are on the best mortgage?
  • Have I explained clearly all the fees you will incur?
  • Are you aware of how I will be paid?
  • Is there anything that you would like me to explain again?

Whilst all the key information is detailed within the documents you provide, it is also important to talk to your client and ensure that any questions they have about the mortgage have been answered.

Each year, every adviser completes an observation with the Compliance Department and will receive feedback on what went well and what could be improved on. If you ensure you have the same conversation with your customers, you can be confident that you are doing everything you can to ensure your customer is treated fairly and understands everything they should.

If you have any questions, please do not hesitate to contact a member of the Compliance Department or Member Support who will be happy to help.

Regards

Alan Baldwin

Director of Compliance

 

For any questions or queries, contact the Compliance Team

Call : 01708 676110

Email : compliance@connectmortgages.co.uk