With the introduction of a Best Interests Duty (BID) for mortgage brokers coming into effect on 1st January 2021, Connective has designed a compliance workflow to assist our brokers to comply with these new regulations.
We have regularly maintained the view that our brokers serve their customers first. As such, we believe there are only a small number of refinements necessary to adhere to the new legislation and the guidance provided by ASIC.
These refinements primarily focus on:
- Taking detailed notes to evidence you have acted in accordance with BID which will protect you if an issue arises in the future
- Providing product comparisons to your customer and explaining the various options
- Documenting how the final product selected meets the customer’s needs and requirements, priorities and preferences
- Documenting the reason why the final choice of lender was selected from the various options presented
Using the compliance workflow will assist you in this process. The key objectives of the workflow include:
- Ensure you take the necessary steps to comply with your regulatory obligations
- Provide an end to end workflow that replaces Connective’s current compliance requirements that its credit representatives are required to follow and a best practice workflow for our ACL brokers
- Create an updated CPD (entitled “Summary of requirements and credit proposal”) which you can present to your customer which demonstrates how you have acted in their best interests
- Flexibility to allow you to mould your existing processes around the workflow
- Minimise the additional work (if any) required by you to comply with BID
- Assist you to create a file evidencing your compliance with BID in the event an ASIC or AFCA issue arises in the future
To learn more about Best Interests Duty please visit the BID Hub here