Page 8 - The Pulse July 18

Due Diligence Should Be Far More than Just

a Tick Box Exercise

Compliance Update

Taking the time to investigate your client fully will yield
many more rewards. The voters’ role in and around where
the client resides, especially where portfolio landlords are
concerned, may highlight other properties the client has
not declared. Previous properties now let out or properties
in other family member names are just two examples of
where further buy to let lending or possible commercial
finance for bigger portfolios, may be appropriate. Plus,
there are often opportunities for pension and tax mitigation
or insurance referrals which usually prove very lucrative.
This can also the lead into referral business to arrange
family members’ mortgages too.

Investigations into a client’s own company via Google
or Companies House can provide a huge insight into the
client’s possible associated companies, company loans or
debentures and general overall finances. This is always a
haven of opportunity for commercial finance or insurance,
such as keyman or partnership insurance.

Many Brokers will steer clear of more complicated business
finance requirements, but this is where a good Network
can help; working with you and your client to help place
more complicated financial needs whether that may be
company pension schemes, corporate restructure or
significant capital raising.
The increased levels of due diligence now
expected on a case is seen by many as an The term holistic approach is often used by the Regulator
unnecessary addition to an already time intensive as their way of assuring a Broker reviews all the client’s
circumstances to ensure the best advice is provided. The
application process, and by others as another same can be said for the services offered. A good Broker
over the top requirement of Networks looking to will ensure they are the linchpin for all their clients’ needs
shelter themselves from the wrath of the client offering advice where they can and providing professional
or lender. referrals where necessary.

Whatever your view, it is here to stay, although technology Maximising every opportunity and networking with like-
as it further impacts our industry will I’m sure assist in minded people will not only ensure you provide a service
improving the time this takes. second to no-one but will also attract referrals from other
professionals.
What is however a clear upside to all this is the huge
opportunities that present themselves when carrying Limited knowledge of a client’s circumstances will yield
out a detailed investigation into your clients’ TRUE limited rewards. A full and detailed knowledge of all your
circumstances. clients’ finances will yield greater rewards!
Many clients will only tell you what they think you want
to hear. Possibly believing they are being clever by David Ewing
hiding certain information, they are more likely missing Managing Director
opportunities to save money, make money or grow their
business.

For years’ Brokers have reviewed bank statements picking
up on unsecured loans and other debt that could be
consolidated into a mortgage, thus reducing the clients’
outgoings whilst at the same time increasing the amount
of money lent and in turn the pennies in the Broker’s
pocket … but this is just the tip of the iceberg.

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