While we’re confident the majority of Connective mortgage brokers are already serving their customers’ best interests, Mercury Nexus streamlines the process through the Compliance Centre.
What fields are mandatory in the Compliance Centre?
The Compliance Centre will pre-populate with information pulled directly from your People records, however there are a number of fields you will need to manually complete. The following fields are mandatory.
Client’s requirements and objectives
This section will populate directly into the Summary of Requirements and Credit Proposal document and is mandatory.
Product recommendation and selection
- The Exit Strategy must be noted where applicable.
Example answer: Nancy and James will make repayments over the contracted loan term.
- The Product Fit, in particular how your product recommendations and how they meet the customers’ needs and objectives.
Example answer: All products shortlisted feature offset, redraw and internet banking.
- The Final Product selection is mandatory and will also populate into the Summary of requirements and Credit Proposal document.
Example answer: Final choice of lender: A product comparison was sent to you on 20 October, giving you four lender options which would suit your needs and requirements. Lender one: A regional bank with strong net promoter score for customer service. Lender two: A major bank with cash back offer of $2,000 is settlement occurs within the next three months. Lender three: A second tier lender with a focus on internet banking apps. Lender four: a regional bank with an ethical focus on reducing their carbon footprint and only doing business with customers who are committed to environmental sustainability. After discussing the pros and cons of each lender and the overall cost over the life of the loan, lender three was selected. Although lender one had a slightly cheaper interest rate, the total interest over the life of the loan mean lender three was cheaper in the long term.
- Best Interest – cheapest option.If the loan applied for was not the cheapest option available, this section is mandatory and must note the reasons why the other product was selected over the cheaper option available.
Conflicts of Interest
Both questions in the Conflicts of Interest section are mandatory. You must confirm:
- If a conflict of interest was identified. If there was a conflict, you must note what that conflict was and how this was disclosed to the client.
- You have placed the client’s interests above all else in accordance with the Priority Rule.
No evidence needs to be uploaded here, as it will be attached to the compliance tab in AOL, but you must confirm you:
- Have a signed copy of the CPD.
- Have a signed privacy consent
- Can provide a copy of the Preliminary Assessment if requested.
Where can I find more information about my BID obligations?
To learn more about Best Interests Duty please visit the BID Hub here.