The Loan Market Way - Step 4: Recommendations Chat

As per RG273.90, to meet your best interests obligations you must present your recommendations in a way that clearly educates the client(s) on how the recommendation is in their best interests. In addition, you should articulate why you’ve recommended this option as opposed to the other options. 

Typically, this chat would be the opportunity to ensure your client(s) understand why:

  1. The options presented to them were selected
  2. Why other options were not presented (particularly where there are less than 3 options)
  3. From these options, why the specific recommendation was made

The Game Plan

The Game Plan has been designed to support you in the Recommendations Chat. It collates critical information from the Goal Setter and MyCRM, demonstrating your awareness of your client’s needs and objectives and how this influenced your decision process. It displays your rationale for your recommendation and will support you in educating your client on your recommendation 

Specifically the Game Plan will demonstrate:

  • The goals, preferences and details used in your research
  • A summary of the options you considered and your specific recommendation(s)
  • Your rationale for why your recommendation meets the client’s best interests
  • Confirms key factors that influenced your recommendation, specifically interest rates, product features, turnaround times, lender preferences, credit policy, borrowing capacity and any other factors. 
  • Fees and charges your client is liable to pay (i.e. application and valuation fees); commissions you will receive from the lender and the amount of commissions you will pay third parties such as referrers (if applicable).
  • Confirmation from your client(s) authorising you to proceed to submitting the loan application 

If there is a material change to the loan post the Game Plan being issued to the client(s), this should be re-issued to reflect changes made. You should not proceed to submit an application to a lender prior to having an executed Game Plan.

Remember - this is where you’re showing your client(s) that your recommendation is in their best interests. This may lead to questions about the recommendation(s), options and information that you provide. If further information is presented, notes should be captured to reflect this. 

For more information please email compliance@loanmarket.com.au