Introduction
This is an agreement between an introducer of business and Charleston Financial, authorised by the Financial Conduct Authority where required, to provide services and or products of the firm to the introducers client.
Definitions and References
“Appointed Representative” means an Appointed Representative as defined by the FCA Rules
“GDPR” means General Data Protection Regulation
“The Company/ The Firm” shall refer to Charleston Financial Services limited of 9 Copperhouse Court, Caldecotte, MK7 8NL.
“FCA” means The Financial Conduct Authority.
“FCA permission” means either a full permission or an interim permission
“The Introducer” means the individual or company using Charleston Financial Services limited.
“The Client” means the person introduced to Charleston Financial Services limited via the “Introducer”.
- “Route 1” means that the Introducer provides the Company with the name, telephone number / address of the Client and the Company maintains primary contact with the Client in order to carry out its obligations under the regulatory requirements of the FCA in connection with the completion and submission of the Mortgage Loan application.
- “Route 2” means that the Introducer maintains primary contact with the Client at all times and in their own right are responsible for meeting the regulatory requirements of the FCA in connection with the completion and submission of the Mortgage Loan application.
- Business covered by 33a exemption (not by way of business introduction)
firms falling into route 3 must strictly limited their activities to providing Charleston with the clients name, contacts details and under no circumstances undertake any further steps or involvement within the mortgage process (examples of this route would be estate agents, accountants solicitors etc.)
“Regulated Activity”, for the purposes of this agreement, means advising, arranging or the bringing about of a Regulated Mortgage Contract, a Non-investment Insurance Contract, a Regulated Credit Agreement or a Credit Agreement
“Scope of Permission”, for the purposes of this agreement, means permission gained by either the Company or the Introducer from the FCA in relation to a specific Regulated Activity as recorded by the FCA in relation to either the Company or the Introducer.
General Principles
“The Introducer” shall:-
- Conduct their business in a responsible manner, having due regards for the interests of the client and making sure that all communication is clear, fair and not misleading.
- Comply with all regulatory requirements, including the GDPR and where authorised by the FCA, or an Appointed Representative the FCA Rules, and all relevant legislation and any related provisions to any of the aforementioned.
- Conduct themselves in a compliant manner when engaging in the regulated activities of advising on or arranging a regulated mortgage contract, a non-investment insurance contract, a regulated credit agreement or a credit agreement.
- In the instance of route 1, where the Introducer is not authorised under the FCA rules to engage in the regulated activities of advising on or arranging a regulated mortgage contract then the Introducer agrees not to carry out such activities and in doing so shall limit its activities and that of any third party from whom it is introducing business to the Company to introducing only and expressly where it has a legal entitlement to do so.
(a) Not receive any money from the client in connection with or ancillary to any transaction in relation to a regulated mortgage contract which the Client enters into as a result of such an introduction to the Company.
(b) Where appropriate, make clear to a client the details of any reward, advantage or payment it will receive for the introduction.
(c) Make all other such disclosures concerning an introduction in respect of its relationship with the Company and its own activities.
(d) Maintain records of such disclosures in every instance.
- In the instance of route 2, be solely responsible for the regulated activities in which it participates and comply with any provisions made by the FCA in connection with such activities.
Introducers Further Obligations & Responsibilities
- Where the Introducer is a member of or registered with any industry recognized body, such as FCA, the Introducer agrees to ensure that their operations and activities comply with any relevant provisions of that industry recognized body
- Where the Introducer is carrying out a regulated activity, the Introducer will ensure that they keep up to date with their own regulatory processes and as such are solely responsible for those activities as the Company does not operate a network and to this end does not have Appointed Representatives of any kind. The Introducer agrees to make the Company aware, in every case, what basis a particular introduction is to be processed on.
- The Introducer agrees to ensure that all their marketing, sales and promotional material complies with all relevant legislation and regulatory provision. (FCA registered firms only) none FCA registered firms (for the type of business introduced) should only use the promotional material supplied by Charleston Financial Services.
- Where the Introducer has reason to believe that an application for a mortgage or secured loan is incorrect in any way, shape or form or that the way in which that application has been procured or dealt with contravenes any relevant regulatory requirements the Introducer agrees that under this agreement it has a duty, in addition to any existing legal requirement, to inform any necessary body and the Company. The Introducer will ensure that under any agreement it has with the Client it has sufficient permission to pass on such information to the Company.
- The Introducer agrees that in every instance it will adhere to the requirements of the GDPR and all relevant provisions and amendments.
- The Introducer agrees to hold FCA permissions for its licensable activities. No introductions will be accepted from any introducer which cannot evidence regulatory permissions to make such introductions or whereby a valid exemption from authorisation cannot be demonstrated. Charleston will not accept introductions from any other source.
- If the firm becomes aware of any complaints made by clients of the Introducer, they may notify the introducer accordingly.
- Where a complaint is made in connection with the Introducer, the firm may investigate and discontinue this agreement if appropriate.
Relationships
Nothing in this agreement will constitute or be deemed to constitute a partnership, nor to create the relationship of employer or employee between the Company and the Introducer.
Nothing in this agreement will constitute or be deemed to constitute either an Appointed Representative or an Introducer Appointed Representative relationship between the Company and the Introducer.
The Introducer has neither power nor authority to bind the Company or contract on its behalf, act or create any liability of the Company in any way.
Any activity regulated or otherwise carried out in the pursuance of a mortgage or loan enquiry with a view to introducing such an enquiry to the Company irrespective of the Service Standard involved shall not constitute an act of agency between the Company and the Introducer. The Introducer acknowledges that it is an independent contractor and not an agent of the Company.
Remuneration
Clawbacks and Refunds
Where the Firm is required to repay commissions or fees following cancellation, the firm may recover the relevant proportion from the introducer. The parties may agree that such amounts are to be offset against future earnings.
Termination of the Agreement
This agreement may be terminated either in writing or by mutual agreement.
This agreement will be terminated automatically if it becomes illegal or non-compliant through changes in the regulatory regime or if either of the parties commits an illegal act.
