The FCA has published guidance for firms considering whether to make an information from lenders (IFL) referral, together with an IFL reporting form for use when making referrals. The FCA explains that referrals are likely to fall into one of the following categories where the lender:
- removed the intermediary (or adviser or employee of intermediary) because of his or her own mortgage applications;
- removed the intermediary (or adviser or employee of intermediary) because of his or her clients’ mortgage applications; and
- has either proof or is suspicious that the intermediary is being used as a conduit for the purpose of financial crime, taking advantage of a lender’s weak systems and controls for example.
The guidance sets out a non-exhaustive list of examples of the types of behaviour that may trigger a referral, to assist lenders in deciding which cases to send to IFL. The guidance also encourages lenders to be pragmatic in their approach and use considered judgment when making their referrals.
View FCA information from lenders reporting form, 13 June 2014