Impact Specialist Finance managing director Dale Jannels said the number of brokers who were still submitting business without suitability letters signed by clients scared him.
Jannels said brokers need to make sure they are backing up the advice they are giving.
He told Mortgage Solutions that while it was not the majority of brokers, it was still a significant number, which he feared could be leaving themselves open to future action led by claims management companies (CMCs).
With the Financial Conduct Authority’s payment protection insurance (PPI) claims deadline passed in August, claims firms have been looking in to other financial sectors for potential consumer detriment, and mortgage advice has been a target.
“It’s not set in stone so they don’t have to do it, and it’s not a regulatory requirement of getting the client to sign,” Jannels said.
“But you’re going to get CMCs coming through in the next 10 years – they are already looking at issues and cases from 10 or 15 years ago.
“So if they are not getting everything written down they are in trouble. It scares me and they are opening themselves up to problems,” he added.