We are all aware that there is a burden on anyone involved in the conveyancing process to focus on regulatory compliance and ensure that risk is managed effectively, with this in mind Goldsmith Williams ask “due diligence is key to maintaining confidence in our industry but what does it actually mean for brokers? What tests should you apply and how should you go about it?”
For many brokers the whole process can be complex and confusing. Goldsmith Williams say that they understand the concerns of the mortgage industry and in light of this have launched the ‘Due Diligence Kit’ (DDK) for brokers, commenting:
“We have launched the Goldsmith Williams Due Diligence Kit, a pack you can download that means you don’t have to spend your valuable time worrying about compliance”.
DDK is a seven-point guide outlining the important checks that brokers should carry out on legal service providers and is available online.
Partner at Goldsmith Williams, Eddie Goldsmith, said:
“Across the mortgage sector, we are seeing an unparalleled focus on the importance of compliance as lenders tighten their panel selection criteria and regulators make continued efforts to clamp down on industry fraud.
The FSA’s thematic review, whilst concentrating on lenders’ processes nevertheless clearly sets out the case that anyone making a referral to a third party has to increasingly show that they have carried out some checks for probity. This may seem as an unwelcome further compliance burden, but with growing concern over the financial stability of providers, including conveyancers, this is becoming an inevitable next stage.
That means conducting due diligence before they refer clients to legal services providers, which represents new territory for the vast majority of intermediaries. By contrast, Goldsmith Williams has long been accustomed to the highest regulatory compliance and we hope the DDK helps brokers to navigate unchartered waters and provide a robust service to their clients.”
Efforts to reduce fraud and negligence and stricter panel selection criteria from lenders have led to an increase of pressure within the conveyancing process and brokers also have to exercise a duty of care when referring legal service providers.
Today’s Conveyancer, bringing you the latest conveyancing news and updates.
