The firm has made this change ahead of the incoming Consumer Duty rules so brokers can know what to look out for. It said this would help brokers identify vulnerabilities earlier and prompt them to ask questions if needed or know if additional care is necessary.
The ‘flag’ will also appear on the ‘Evidence of Research’ section of its platform in coming weeks so that there is documented evidence that this has been flagged, and it can be included in a broker’s compliance file.
The function will also be added to Knowledge Bank’s KB Pro platform which is for lenders. It will highlight areas of criteria which can be affected by Consumer Duty.
This will be available to lenders and their staff from next week.
Nicola Firth (pictured), CEO of Knowledge Bank, said, “Consumer Duty will be a significant sea change for both brokers and lenders. The level of care needed when advising clients is definitely increasing a notch.”
“One of the most challenging aspects of Consumer Duty is identifying instances of vulnerability as it is far more complex than many of us may realise given the transient nature of vulnerability at various stages and events in people’s lives.”
She said making the flag visible at the early stages of looking for a mortgage would help brokers know when to put additional measures and support in place.
Firth added: “This will help to protect both them and their more vulnerable clients and help brokers evidence that they have done so and give them the ability to save it to their compliance file.
“However, we have also thought about lenders and the information that they will need, both for their internal teams and to stay at the forefront of the market by being able to identify gaps in the market and opportunities with our cutting-edge market insights.”
