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Tip of the Week

Execution Only Disclosure Amendment

By 24th August 2020No Comments

The Financial Conduct Authority (FCA) have made a welcomed tweak to execution-only rules.  Prior to the 30th July 2020 firms were required to inform customers that were proceeding on an execution-only basis that they wouldn’t benefit from them checking whether the mortgage would be suitable for them and that they will not benefit from the rules on assessing suitability.  The customer would then be required to make a positive election to proceed on an execution-only basis.  This disclosure would need to be made verbally and put in writing.  In addition, the customer’s positive election would also need to be put in writing.

However, the FCA decided to amend this rule allowing such disclosure and positive election to be recorded by either phone or video and then held on file.  Also the firm will no longer require the disclosure and positive election to be in the same document or recording, therefore giving the option to the firm.