The Society of Mortgage Professionals (SMP) has produced a good practice guide in collaboration with Paradigm Mortgage Services on what mortgage advisers need to do to meet the Financial Conduct Authority’s Senior Managers & Certification Requirements (SMCR) is covered in a new guide.
The guide advises how senior managers in the mortgage sector should examine their responsibilities, and how they impact customer outcomes.
The society has outlined four key actions which constitute good practice for mortgage firms. These are:
- Consider customer outcomes first- Senior managers must evaluate the risks presented to clients as a result of their professional conduct, and to the best of their ability, endeavor to protect them from hard and negative outcomes.
- Consider how to create the right culture- Senior managers must facilitate best client outcomes by creating a company culture which emphasizes the importance of high ethics and professional competence.
- Clearly represent the firm’s identity- Senior managers must promote clear definition of the firms type and staff roles, so that potential clients can easily understand if the services offered are that which they need, and how best to make use of those services.
- Keep up to date with skills and training- Senior managers must promote continued professional development within their firms for all members of staff to the benefit of customers, including the recertification of professional adequacy every 12 months.
David Thomas, chair of the Society of Mortgage Professionals, said: “By clearly outlining levels of responsibility, firms can make it easier not just to identify areas of market abuse, but also to create a culture which promotes the fair treatment of customers.
“Aligning all financial services in this way will give customers greater confidence that a consistent and regulated system is in place. Ultimately, this will greatly benefit public trust.”
For more information and to read the full report, please visit: https://www.cii.co.uk/media/10123061/smcr-good-practice-guide-for-mortgage-professionals.pdf