If the initial contact in is by telephone, a firm must:
(a) (if the call is with a view to concluding a distance home purchase mediation contract) give the following information before proceeding further:
(i) the name of the firm and (if initiated by the firm) the commercial purpose of the call;
(ii) the scope of the service provided by the firm; and
(iii) whether or not the firm will provide the customer with advice on those home purchase plans within its scope; and
(b) ensure that the customer is, or has been, provided with such a document in a durable medium as soon as is practicable.
If the adviser is assessing suitability they should take reasonable steps to obtain from a customer all information likely to be relevant to ensuring the suitability of its advice.
Before making a personal recommendation on a home purchase plan, the adviser must take reasonable steps to ensure that it is:
(a) affordable;
(b) appropriate to the customer’s needs and circumstances; and
(c) the most suitable of those home purchase plans that the firm has available to it within the scope of the service provided to the customer.
For more details see the FSA’s Mortgage Conduct of Business rulebook. http://fsahandbook.info/FSA/html/handbook/MCOB/
