Application Processes. 3.1 The Broker shall, from time to time, on request by Close provide such information, records or documents as Close may require to perform its obligations under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 or other Applicable Laws. 3.2 The Broker should assess whether an Applicant may be vulnerable and therefore may, due to their personal circumstances, be especially susceptible to detriment. In relation to any Applicant, if the Broker considers that: (a) there are any factors which may make the Credit Agreement unsuitable for the Applicant; or (b) an Applicant may be vulnerable, the Broker shall notify Close of the same at the time the application for a Credit Agreement is submitted by the Broker to Close. 3.3 If the Broker is aware or reasonably believes that the Applicant is not solvent, has a history of an unsatisfactory repayment record and may not be able to repay the Advance and all other amounts owing under the Credit Agreement, the Broker shall promptly inform Close and shall not submit an application for a Credit Agreement for such Applicant. 3.4 Without prejudice to the generality of clause 2.1, the Broker shall ensure that it manages any conflict between its own interests and the interests of the Applicant (or the Borrower) fairly and, in particular, the Broker shall: (a) ensure that, before submitting an application for a Credit Agreement to Close, the relevant Applicant is informed that they may be able to seek finance for the Insurance Premium from another provider on different terms; (b) ensure that, before submitting an application for a Credit Agreement to Close, the terms of the proposed Credit Agreement have been explained to the Applicant; (c) ensure that all interest, fees and charges which are charged to the Applicant are fair, reasonable and transparent; and (d) provide the Applicant with appropriate information in relation to the Credit Agreement which is clear, fair and not misleading. 3.5 The Broker acknowledges that before an Applicant enters into a Credit Agreement the Broker shall (unless otherwise agreed in writing by Close): (a) complete all required due diligence for the purposes of validating the Insurance Policy and ensure that all material disclosures made by the Applicant are true and correct; (b) prior to the Applicant signing the Credit Agreement, provide the PCCI (in the form provided by Close to the Broker) to the Applicant; (c) prior to the Applicant signing the Credit Agreement, provide the Pre-Contractual Explanations to the Applicant by integrating the Script into its sales process (including any Broker online sales journey or third party aggregator site) and provide the Applicant with sufficient time to review such documentation; and (d) ensure that each Borrower correctly signs the Credit Agreement and direct debit mandate and that Close is provided with the signed copies of such documents. 3.6 The Broker shall inform Close if the Insurance Premium is not refundable on a Pro-rata basis at inception, or if there is no right of Cancellation of the relevant Insurance Policy and/or no return of Insurance Premium upon Cancellation, or if the Insurance Premium is subject to any prior year adjustments. 3.7 The Broker shall ensure that it has in place such policies and procedures as required by Close and notified to the Broker from time to time. 3.8 The Broker agrees that where ▇▇▇▇▇ collects any Insurance Premium directly from Borrowers, then it does so as agent for the Broker. Accordingly the Broker agrees that in accordance with CASS 5.2.3 R of the FCA Handbook any Insurance Premium collected on behalf of the Broker shall not be client money for the purposes of the FCA Handbook. 3.9 In relation to Complaints, the Broker shall: (a) maintain a full and accurate record of Complaints; (b) ensure that it complies with the requirements in the DISP section of the FCA Handbook and is consistent with clause 3.10; and (c) make available to Close at any time on Close’s request, its records relating to Complaints. 3.10 If either Party receives a Complaint, it shall handle that Complaint in accordance with the DISP section of the FCA Handbook. Where requested the other Party shall, promptly and in any event within 2 Business Days of such request, provide any information which that Party reasonably requests in relation to resolving the Complaint and: (a) if Close receives a Complaint which relates to an act or omission of the Broker, it shall forward that Complaint to the Broker within 2 Business Days and the Broker shall be responsible for handling that Complaint in accordance with the rules in the DISP section of the FCA Handbook; or (b) if the Broker receives a Complaint which relates to an act or omission of Close, it shall forward that Complaint to Close within 2 Business Days and Close shall be responsible for handling that Complaint in accordance with the rules in the DISP section of the FCA Handbook. For the avoidance of all doubt, the Broker shall not settle any Complaint relating to Close without the prior written consent of Close. 3.11 The Broker shall: (a) ensure that all of its Personnel who perform any obligation for the Broker under this Agreement are competent to do so. The Broker shall provide training to its Personnel on an annual basis and where there have been changes to the Applicable Laws or to Close’s processes or procedures relating to promoting a Credit Agreement, ensure that its Personnel are competent to perform the Broker’s obligations under this Agreement. Evidence of the employee’s fitness and propriety and such training shall be provided to Close upon request; (b) audit the sales practices of the Personnel involved in the promotion of Credit Agreements on at least a quarterly basis and undertake remedial action and/or training of such Personnel if any corrective actions are identified and, if requested by Close, provide to Close a summary of its compliance with the required sales practices, with the format and frequency of such reports to be determined by Close and where requested by Close, provide details of any remedial actions and/or training to be undertaken; and (c) make available to Close at any time on Close’s request, its records in relation to clause 3.11(b). 3.12 The Broker shall ensure that any structures it uses to remunerate its Personnel in relation to the promotion of Close’s credit facilities or that leads to the formation of a Credit Agreement accepted by Close must comply with all Applicable Laws, promote good customer outcomes and must not create a conflict of interest between its Personnel and an Applicant. 3.13 In circumstances where ▇▇▇▇▇ is unable to apply customer due diligence measures for anti-money laundering purposes, Close shall decline to enter into the Credit Agreement and any monies which may have been received by Close in anticipation of the Credit Agreement being approved (if any) shall be returned by Close to the Broker in order to refund the Applicant on such terms and conditions as may have been agreed between the Broker and the Applicant.
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Sources: Commercial Lines Terms of Trade
Application Processes. 3.1 The Broker shall, from time to time, on request by Close provide such information, records or documents as Close may require to perform its obligations under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 or other Applicable Laws.
3.2 The Broker should assess whether an Applicant may be vulnerable and therefore may, due to their personal circumstances, be especially susceptible to detriment. In relation to any Applicant, if the Broker considers that:
(a) there are any factors which may make the Credit Agreement unsuitable for the Applicant; or
(b) an Applicant may be vulnerable, the Broker shall notify Close of the same at the time the application for a Credit Agreement is submitted by the Broker to Close.
3.3 If the Broker is aware or reasonably believes that the Applicant is not solvent, has a history of an unsatisfactory repayment record and may not be able to repay the Advance and all other amounts owing under the Credit Agreement, the Broker shall promptly inform Close and shall not submit an application for a Credit Agreement for such Applicant.
3.4 Without prejudice to the generality of clause 2.1, the Broker shall ensure that it manages any conflict between its own interests and the interests of the Applicant (or the Borrower) fairly and, in particular, the Broker shall:
(a) ensure that, before submitting an application for a Credit Agreement to Close, the relevant Applicant is informed that they may be able to seek finance for the Insurance Premium from another provider on different terms;
(b) ensure that, before submitting an application for a Credit Agreement to Close, the terms of the proposed Credit Agreement have been explained to the Applicant;
(c) ensure that all interest, fees and charges which are charged to the Applicant are fair, reasonable and transparent; and
(d) provide the Applicant with appropriate information in relation to the Credit Agreement which is clear, fair and not misleading.
3.5 The Broker acknowledges that before an Applicant enters into a Credit Agreement the Broker shall (unless otherwise agreed in writing by Close):
(a) the Broker shall complete all required due diligence for the purposes of validating the Insurance Policy insurance policy and ensure that all material disclosures made by the Applicant are true and correct;
(b) in relation to an Applicant for which the Broker is using Telesign, the Broker shall prior to the Applicant signing the Credit Agreement, provide the Pre-Contractual Explanations by delivering the Telesign Script in accordance with clause 16.1;
(c) in relation to an Applicant for which the Broker is not using Telesign, the Broker shall (unless otherwise agreed in writing by Close):
(i) prior to the Applicant signing the Credit Agreement, provide the PCCI (in the form provided by Close to the Broker) to the Applicant;
(cii) prior to the Applicant signing the Credit Agreement, provide the Pre-Contractual Explanations to the Applicant by integrating the Non-Telesign Script into its sales process (including any Broker online sales journey or third party aggregator site) and provide the Applicant with sufficient time to review such documentation; and
(diii) ensure that each Borrower correctly signs the Credit Agreement and direct debit mandate and that Close is provided with the signed copies of such documents.
3.6 The Broker shall inform Close if the Insurance Premium is not refundable on a Pro-rata basis at inception, or if there is no right of Cancellation of the relevant Insurance Policy and/or no return refund of Insurance Premium upon Cancellation, or if the Insurance Premium is subject to any prior year adjustments.
3.7 The Broker shall ensure that it has in place such policies and procedures as required by Close and notified to the Broker from time to time.
3.8 The Broker agrees that where ▇▇▇▇▇ collects any Insurance Premium directly from Borrowers, then it does so as agent for the Broker. Accordingly the Broker agrees that in accordance with CASS 5.2.3 R of the FCA Handbook any Insurance Premium collected on behalf of the Broker shall not be client money for the purposes of the FCA Handbook.
3.9 In relation to Complaints, the Broker shall:
(a) maintain a full and accurate record of Complaints;
(b) ensure that it complies with the requirements in the DISP section of the FCA Handbook and is consistent with clause 3.10; and
(c) make available to Close at any time on Close’s request, its records relating to Complaints.
3.10 If either Party receives a Complaint, it shall handle that Complaint in accordance with the DISP section of the FCA Handbook. Where requested the other Party shall, promptly and in any event within 2 Business Days of such request, provide any information which that Party reasonably requests in relation to resolving the Complaint and:
(a) if Close receives a Complaint which relates to an act or omission of the Broker, it shall forward that Complaint to the Broker within 2 Business Days and the Broker shall be responsible for handling that Complaint in accordance with the rules in the DISP section of the FCA Handbook; or
(b) if the Broker receives a Complaint which relates to an act or omission of Close, it shall forward that Complaint to Close within 2 Business Days and Close shall be responsible for handling that Complaint in accordance with the rules in the DISP section of the FCA Handbook. For the avoidance of all doubt, the Broker shall not settle any Complaint relating to Close without the prior written consent of Close.
3.11 The Broker shall:
(a) ensure that all of its Personnel who perform any obligation for the Broker under this Agreement are competent to do so. The Broker shall provide training to its Personnel on an annual basis and where there have been changes to the Applicable Laws or to Close’s processes or procedures relating to promoting a Credit Agreement, Agreement ensure that its Personnel are competent to perform the Broker’s obligations under this Agreement. Evidence of the employee’s fitness and propriety and such training shall be provided to Close upon request;
(b) audit the sales practices of the Personnel involved in the promotion of Credit Agreements on at least a quarterly basis and undertake remedial action and/or training of such Personnel if any corrective actions are identified and, if requested by Close, provide to Close a summary of its compliance with the required sales practices, with the format and frequency of such reports to be determined by Close and where requested by Close, provide details of any remedial actions and/or training to be undertaken; and
(c) make available to Close at any time on Close’s request, its records in relation to clause 3.11(b).
3.12 The Broker shall ensure that any structures it uses to remunerate its Personnel in relation to the promotion of Close’s credit facilities or that leads to the formation of a Credit Agreement accepted by Close must comply with all Applicable Laws, promote good customer outcomes and must not create a conflict of interest between its Personnel and an Applicant.
3.13 In circumstances where ▇▇▇▇▇ is unable to apply customer due diligence measures for anti-money laundering purposes, Close shall decline to enter into the Credit Agreement and any monies which may have been received by Close in anticipation of the Credit Agreement being approved (if any) shall be returned by Close to the Broker in order to refund the Applicant on such terms and conditions as may have been agreed between the Broker and the Applicant.
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