Newsletter Compliance Update The purpose of these occasional updates is to provide guidance to our advisers on the most common issues that arise. They cannot provide guidance for every eventuality. Therefore you should discuss any compliance issues you have with either the Compliance Officer or the Compliance Manager. You should also note that the firm are required to establish systems and control that the deem necessary to meet with the Financial Conduct Authority rules. It is therefore the rules of the firm that take precedence and not the rules of the Financial Conduct Authority
Introducers
For the sake of clarity, an Introducer is an individual or firm who refers another client to an adviser with the express intention of conducting regulated business. This can be for Equity Release, Standard Mortgage business, Life Cover and General Insurance. Essentially, we can define an Introducer as someone who will or expects to receive a financial reward for making the introduction. In order to establish an Introducer relationship you will need to get an Introducer Agreement signed in all cases. This is essential as this sets out the expectations of both parties in terms of who is giving the advice and of course what percentage of any fee or commission they may receive for each introduction.
General Insurance and Pure Protection The purpose of these occasional updates is to provide guidance to our advisers on the most common issues that arise. They cannot provide guidance for every eventuality. Therefore you should discuss any compliance issues you have with either the Compliance Officer or the Compliance Manager.You should also note that the firm are required to establish systems and control that the deem necessary to meet with the Financial Conduct Authority rules. It is therefore the rules of the firm that take precedence and not the rules of the Financial Conduct Authority
Action Required As advisers, you will need to ensure that you have notified all of your Introducers to the compliance department and that agreements are in place. If you want to check if you have a current agreement in place, please contact the Compliance Manager.
The Right Equity Release 21D Croft House Knowle Solihull b93 0JE 0800 612 6755
www.therightequityrelease.co.uk
Financial Promotions - Websites We continue to receive a number of queries relating to the setting up of websites. Some time ago, TRER took the decision that the only websites that would be authorised would be the stock version available from the Marketing Department. At this moment in time, the firm do not anticipate reconsidering this decision. Any new advisers wanting to set up a website will need to speak to Lauren on the Marketing Department who will advise you of the information she needs. In addition to this, we also receive a number of queries relating to Introducer websites. This is where an Introducer to the adviser sets up a website specifically seeking leads whilst mentioning the adviser to whom the referral will be made. Advisers are reminded that it is not the policy of TRER to compliance check these websites and it is down to the firm setting up the website to arrange for its own Compliance review. Advisers do however need to be careful that the website makes it clear that the firm will only be making a referral and does not offer the advice itself.
Financial Promotion Turnaround Times All proposed financial promotions must be referred to the Compliance Manager along with the completed authorisationform. This will then be acknowledged, reviewed and feedback provided within 7 working days. Advisers must ensure that they do not publish any financial promotion without prior authorisation.
Future Topics If any adviser would like clarification on any other compliance issues, please telephone or email the Compliance Manager.
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We look forward to seeing you all at the next Sales Meeting: Thursday 21st June 2018 Village Hotel Solihull The Green Business Park, Dog Kennel Ln, Solihull B90 4JG
The Right Equity Release 21D Croft House Knowle Solihull b93 0JE 0800 612 6755 www.therightequityrelease.co.uk
LV= New update Q&A
Q
I am considering moving to a new property, what is my first step?
A
You have taken the first step by contacting us at LV=; the next step is to complete and return the attached confirmationform in order to begin the process.
Q
Are there any restrictions as to the type of property I may choose?
A
Yes – we do not accept freehold flats; business properties and properties with agricultural restrictions; mobile and prefabricated properties; ex Local Authority flats and flats above commercial premise; properties constructed of timber, concrete, single skin brick; properties containing asbestos; flats in blocks of more than seven storeys oproperties in poor condition. If you are uncertain, please supply details of the new propert and LV= will advise you on the suitability.
Q
Can I take my lifetime mortgage with me?
A
Yes - the loan can be transferred to a new home subject to the lenders’ lending criteria at the time and a satisfactory valuation. If the new property is of a lower value than the existing property, then part of the existing loan may have to be repaid.
Q
Who pays for the valuation of the property I want to buy?
A
It is necessary to obtain a mortgage valuation of the property you wish to purchase. You will be responsible for payment other fee, however LV= will instruct the valuer. If you require a more detailed report, for example a full structural survey or a homebuyers report, you will need to instruct this independently of our valuation report.
Q
What if I see a property that is more expensive than my current home?
A
Providing the property meets the lenders’ criteria, we will accept properties of a higher value.
Q
What if I see a property that is of a lower value than my current home?
A
If the property you are moving to is of a lower value than your existing property you may be required to repay part, or allof your existing loan. We will calculate how much, if any, is required to be repaid. Any early repayment charge normally applicable during the first years of the loan will not be payable if you are required to make a partial repayment as a result of moving home.
Q
How much does moving home cost?
A
A non-refundable application fee of £595 is payable to LV Equity Release Limited on application. You will be responsible for the valuation fee, which is charged as per the valuation fee scale below for your new property; these fees are also on-refundable. You will also be responsible for your own legal fees and all fees relating to the marketing of your existing property and purchase of your new property; your solicitor will be able to confirm these fees.
The Right Equity Release 21D Croft House Knowle Solihull b93 0JE 0800 612 6755 www.therightequityrelease.co.uk
LV= New update Q&A Q
How much will the valuation cost?
A
LV= uses a panel of surveyors, the fees for which are detailed below;
Payable upon application (non-refundable) to ‘LV Equity Release Limited’ Properties in excess of £1,500,000 to be agreed on an individual basis. Please contact LV= for confirmation of the valuation fee. Q
Can I move to Sheltered Accommodation?
A
You can move to sheltered accommodation, provided the property meets the lenders’ criteria at that time. LV= will need to review a copy of the lease before proceeding any further. In the event that the property, or the lease, does not meet the lenders’ criteria and you still choose to move, you will be required to repay your lifetime mortgage. If the property does meet the lending criteria and you wish to take the equity release loan with you, any early repayment charge normally applicable during the first years of the loan will not be payable. If you move and the need is not due to doctor’s advice or the need to be in sheltered housing, an early repayment charge may still apply.
Q A
Do I need a solicitor? LV= will appoint a solicitor to act on its behalf, to deal with the arrangements of transferring the mortgage to your new property. You will need to appoint your own solicitor to act on your behalf in relation to the sale of your existing property and the purchase of your new property. The sale and purchase MUST happen simultaneously.
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The Right Equity Release 21D Croft House Knowle Solihull b93 0JE
The Right Equity Release limited
0800 612 6755 www.therightequityrelease.co.uk