The mortgage adviser has a great deal of responsibility, as their advice will result in the client taking on a long‑term commitment, and due to this, it’s imperative that the customer receives ethical advice. Ethical advice is based on what is best for the customer with the information known at that time regardless of the needs of the adviser. This means that advisers should not recommend products based on the commission/bonus provided, the product should only be recommended if it fits the needs of the customer.
The information gathered from the factfind should be used to identify the most suitable product to meet the customer’s needs, affordability and preferences. The adviser must be able to demonstrate how the recommended product meets the client’s precise needs and objectives. It’s important to remember that the ‘nearest best thing’ should not be recommended.