Disclosure
Effective disclosure is at the heart of good advice.
For disclosure to be effective it needs to be clear, fair and not misleading. Customers need to see upfront the fees and the different levels of service available to them. Customers need to compare products, consider the risks and decide if a particular product is right for them.
Meeting FSA timing requirements for providing disclosure documents
- You must give an initial disclosure document (IDD) or combined initial disclosure document (CIDD) on first meaningful contact with a customer.
- You must give a risks and features statement (RFS) before making a recommendation or providing any personalised product information to a home purchase plan customer
- When recommending or providing any personalised product information, you must give the customer a key facts illustration (KFI) for mortgages or equity release products, or a financial information statement (FIS) for home purchase plans.
Combining home finance activities in a CIDD
A CIDD may include 3 categories of home finance services, however they cannot all be combined in a single CIDD. The 3 categories of services are mortgage (excluding lifetime mortgages), home purchase plan, and equity release.
- You may combine mortgage (excluding lifetime mortgage) services with home purchase plan services in a CIDD.
- You may not combine mortgage (excluding lifetime mortgage) services with equity release services in a CIDD.
- You may not combine home purchase plan services with equity release services in a CIDD.
Help available
Worked examples of IDD, CIDD, KFI, RFS and FIS. This includes example disclosure documents for brokers who deal in:
- Mortgages (including business mortgages)
- equity release
- home purchase plans
The 2006 Review of mortgage disclosure documentation is available in the Thematic work section of the website
It includes worked examples of IDD and KFI with comments
Feedback on mortgage initial disclosure documents [PDF]
This mock-up broker IDD (for a company called 'WORMS') depicts common issues found with IDDs as part of the disclosure review undertaken in 2005.
