Just Wealth has strengthened its referral service to include support with protection cases, to help brokers at its sister firm Just Mortgages meet their consumer duty obligations.
Mortgage brokers at Just Mortgages can now use an adviser at Just Wealth to help clients with their protection needs, in addition to referring clients for wider financial advice such as pensions, savings and investments.
This is aimed at streamlining the process for brokers, helping increase their bandwidth and the level of coverage.
Dave Magee, head of wealth at Just Wealth, said: “In the current climate and with the arrival of consumer duty, it’s never been so important for brokers to have meaningful conversations with clients about protection.
“When that isn’t always possible, our new service allows Just Wealth advisers to step in and ensure that the mortgage is fully protected and the client isn’t left exposed.”
The FCA’s consumer duty is designed to eliminate foreseeable harm and ensure good outcomes for all consumers.
According to Just Wealth, the protection gap has long been identified as a “clear challenge” for the industry and under the new rules a lack of protection can be viewed as a foreseeable harm.
For example recent research by the FCA as part of its Financial Lives survey found more than half of UK adults (53 per cent) had no form of protection in the past two years.
Magee added that Just Wealth was in the process of overhauling its entire referral process to make it easier for brokers to refer.
He added: “Best of all, brokers benefit from the revenue share and ensure their regulatory requirements are met. Through our annual reviews, our advisers will be able to regularly monitor the suitability of products as required by the new duty, all while keeping clients warm for brokers for their next remortgage period.”
Carl Parker, national director at Just Mortgages, said: “In a busy brokerage, protection can all too often be a poor relation to mortgage advice. In the spirit of consumer duty and delivering the best service to clients, this cannot be the case.”
amy.austin@ft.com
