Brokers divided on sharing client data
Research conducted by the lender into sharing client data between brokers and lenders revealed 47 per cent of respondents believed it fair that some lenders do not share data on clients that brokers have introduced, while the same number felt the practice unfair. 6 per cent of the 200 brokers questioned did not state a response.
Speaking on the findings, Mehrdad Yousefi, head of intermediary mortgages at A&L, said: “This is a very interesting outcome, demonstrating concern and understanding for this situation from both sides of the argument. There is a school of thought that suggests that the UK is more heavily regulated than other European countries.
Generally, lenders would welcome the call from brokers to share data if the appropriate safeguards were in place and overseen by the Data Protection authorities. Until such a time that third parties have the right to share data under specific guidelines, we must continue to meet the stringent rules on Data Protection.”
Mike Pendergast, IFA at Zen Financial Services, admitted the process of client data was frustrating, as different lenders operate different rules. He said: “There are cases where you have to get a new authority from the client because the lender will not discuss any of the information with you, despite you giving them the business. It could be that what is needed is a clause or disclaimer that states whether or not the broker is able to carry on, and if data is to be shared between the two.”