2. Richard Angliss Home Buyer Systems Home Buyer Systems The ‘Next Generation’ The ‘Next Generation’ Sourcing System Sourcing System

3. Product Overview What is a Next Generation Sourcing System?  It is simply what established sourcing systems should have evolved into, driven by regulation  For both Mortgages and General Insurance

4. FSA Regulation What Is the FSA’s Prime Objective?:  Consumer Protection How Does It Do This?:  Through regulation of the sales process

5. FSA Regulation How do they expect Principals to manage it ?  Systems and Controls That are:  Effective  Robust  Demonstrable

6. Regulated Firms What Do Regulated Firms Have To Do?: Establish a compliant sales process for both Mortgages and General Insurance Establish a compliant sales process for both Mortgages and General Insurance  Fully Document it  Have Systems and Controls to ensure all FSA expectations are met  Provide information in form of RMAR

7. Home Buyer System A System For Industry Professionals by Industry Professionals 26 Years Financial Services experience 26 Years Financial Services experience  Recognised Mortgages would have to be regulated  Previous regulatory experience showed need for sales system that picks up compliance  Knew Systems and Controls Essential  14 Years experience writing systems in Financial Services

8. What The Experts Say "This is the type of system all brokers need to ensure compliance and reduce the risks of giving advice in a regulated environment“ - Frank Eve, Managing Director, Frank Eve Consulting

9. Home Buyer System What are the key components?  Point of Sale System  Training and Competence (T&C)  Compliance Monitoring  Embedded Treating Customers Fairly (TCF)  Management Information

10. Point of Sale System Point of Sale System must have:  A clearly defined easy to use sales process  Factfinding  Affordability assessment  Sourcing  Research  Comprehensive Suitability Letter  Embedded Treating Customers Fairly (TCF)  A clear audit trail – put the file away with confidence

11. Ease of Use

12. Mortgage Sales Process Customer Relationship Management

13. Mortgage Sales Process Sourcing and Research

14. Mortgage Sales Process Tick Box Compliance

15. Insurance Sales Process Tick Box Compliance

16. What Customers Say “Home Buyer certainly assists the professional status of the advisor, and therefore their reputation. Home Buyer’s honest and trust worthy approach underlines their integrity, and the get up and go attitude screams of a dynamic approach to business. They have certainly exceeded my expectations” Lloyd Richards – Managing Director, LPR Mortgages

17. Training & Competence FSA Expect:  To Find A Full T&C Process Implemented  Evidence that it is being used  Applied to both Sales and Support staff  Results being analysed  Areas of concern addressed  Records being kept

18. Training & Competence Creating Tests

19. Training & Competence Creating Tests

20. Training and Competence Training and Competence Modules

21. Compliance System Compliance Monitoring needs to be able to check for: Quantity Make sure the sales process has been followed and all documentation issued Make sure the sales process has been followed and all documentation issuedQuality Check the quality of documentation especially suitability/affordability Check the quality of documentation especially suitability/affordabilityRisk Identify and take action Identify and take action

22. Compliance Officer Control System

23. Compliance Officer Case Checking

24. Compliance Officer Quality Checking

25. Compliance Officer Early Warning System

26. Compliance Officer Direct Communication

27. Treating Customers Fairly Embedded Treating Customers Fairly (TCF). Which Means:  TCF must be incorporated in to the point of sale system  TCF requirements must be seen to be followed through  Company’s TCF policy must be demonstrable as part of it’s culture

28. Treating Customers Fairly Documentation

29. Documentation

30. Promotions Management

31. Treating Customers Fairly Complaints Management

32. Treating Customers Fairly Follow Up Management

33. Management Information Key To Demonstrate Management: Key To Demonstrate Management:  Are basing decisions on good data  Have information available to warn of problems or developing adverse trends  Can track results of implementation of plans  Able to track individuals as well as the whole

34. Management Information Reports Statistics and Risks

35. Management Information Generation of Management Information

36. Management Information Graphical Representation of MI

37. Other Controls Need to be able to store for each AR: Previous Employment History Previous Employment History Qualifications Qualifications Fitness & Competence testing results Fitness & Competence testing results Training Details Training Details All of this needs to be easily accessible for audit

38. Other Controls Advisor Management

39. Overview of HBS

40. System Produced Documents Features

41. Features Browse Lender Products

42. Features View Lenders Website

43. Features Access Lenders KFI’s

44. The Reality What Is Really Happening?

45. The Reality What Is Really Happening?

46. The Reality What Is Really Happening?

47. The Reality What Is Really Happening?

48. Home Buyer System Efficiency 100% Checking from Desk Top 100% Checking from Desk Top Early Warning System Early Warning System Robust Systems and Controls Robust Systems and ControlsCost Reduces staff requirement Reduces staff requirement Minimises risk of fines Minimises risk of fines

49. Home Buyer System Summary Total Process (Mortgage & GI) Total Process (Mortgage & GI) Total Checking Total Checking Cost Effective Cost Effective Can use as a whole or modules Can use as a whole or modules

50. Home Buyer System A TOTAL SOLUTION FOR THE NEW GI & MORTGAGE MARKET The Next Generation Sourcing System