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TMA files alliance with Compliance Checking for DA’s

Sarah Davidson

October 27, 2010

The alliance has been implemented in response to the potential implications of the MMR and wider regulatory requirements.

The MMR will inevitably place greater emphasis on mortgage distribution which means that the regulator and lenders will require greater confidence in an intermediary firm’s compliance procedures. TMA believes that the nature of file checking will enable intermediaries to establish a good quality and cost effective solution.

TMA is currently the only mortgage club offering DA’s an exclusive deal with Compliance Checking. It has negotiated a discount for all DA’s placing business through TMA which equates to a 12.5% reduction on every file checked.

Compliance Checking is a technology based solution aimed to significantly enhance intermediaries’ ability to proactively manage and report on key compliance and business risks.

The system will allow DA’s access to solutions in the following areas:

• Risk Based Remote File Checking – the flexibility of the system allows each firm to define its particular categories of risk which could range from product, business sector to adviser or client. Once set, the frequency of checks can be chosen for each risk area at the discretion of the firm.

• File Data Storage – allows intermediaries to scan and hold for future retrieval of key client documents directly on a designated server. These arrangements can help resolve Data Protection and Disaster Recovery requirements for minimal cost.

• Business Risk Reporting – as part of the Remote File Checking service, the reporting module allows firms to manage key business risks proactively whilst keeping control of compliance costs.

• Outsourced and Temporary Arrangements – access can be provided to experienced compliance staff at competitive rates either on a temporary or permanent basis.

Phil Whitehouse, head of TMA, commented: “It’s pretty clear that the regulator has really begun to bear its teeth in terms of the sheer volume of fines and enforcement action which have been issued in recent months. This illustrates that firms, large and small, must be increasingly vigilant and proactive in their monitoring and reporting activities whilst having sufficiently robust systems and controls in place.

“Many firms have increased file checking, whilst others are applying a risk based approach and the challenge inevitably remains how to utilise limited resources effectively to adapt and manage business risks. This is why we have formed this strategic partnership with Compliance Checking as we believe it can help DA’s find the right solution for the right budget.”

Terry Young, managing director at Compliance Checking, added: “The FSA’s new intensive supervision approach has meant that it has become even more proactive and challenging when it comes to the fair treatment of consumers and addressing consumer detriment. Our technology solution allows firms to increase their file checks significantly and efficiently to reduce risks of unsuitable advice earlier in their sales process while minimising costs.”


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