FSA Unveils New Mortgage Advisor Documents

The Financial Services Authority (FSA) has issued new disclosure documents to replace the existing initial disclosure document (IDD) and menu documents that mortgage advisors use.  The FSA wants mortgage advisors to use the new documents from next month.  During your CeMAP training, you will learn about the use of these documents.

Mortgage advisors can use the new documents from the 6th August and it combines both the old IDD and menu forms.  The idea is to make the disclosure of services and costs more simple by combining all the information together in one document.

Independent financial advisors do not have to switch to the new document but if the do not begin to use it by the set cut-off date of 31st August 2009, then they will lose their right to display the FSA ‘Key Facts’ logo.

Andrew Sykes, the FSA head of retail investment policy, said:

“Firms will be able to use the new document to meet COBS disclosure requirements – but firms will also be able to develop their own material to meet these requirements and provide effective and clear disclosure to their clients.”

The FSA will make transitional arrangements so that firms can continue using the old menu and IDD up to the cut off of 31st August 2009.

For those wondering how this change will affect their CeMAP training, the FSA updated the CeMAP syllabus on a twice-yearly basis, and only when these updates come into effect does the CeMAP training and CeMAP exam get updated.  Therefore, if you already have CeMAP materials or are in the middle of a CeMAP training course, then do not worry.



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