With effect from 6th April 2007 some Islamic Home Finance products have been regulated by the Financial Services Authority (FSA).
Islamic mortgages are referred to as Home Purchase Plans (HPP’s). Frequently Asked Questions regarding this product are available on the FSA website.
HPP products are regulated by the FSA to establish standards and procedures to treat customers fairly and seek to ensure that all information given is accurate fair and not misleading in any way. This will give customers a degree of protection and confidence to enter into HPP agreements having been made fully aware of the key facts and risks involved in the proposed transaction.
To arrange HPP business in the regulated market all intermediaries must be authorised and registered with the FSA to do so. Please refer to the FSA for further clarification regarding regulated HPP products.
Such authority must be registered under the name of the intermediary who offers to undertake such business.
If intermediaries are authorised, then alburaq can provide them with direct access to the Bristol & West “Links For Brokers” website. This will enable them to arrange for an Agreement in Principle (“AIP”) to be confirmed by Bristol & West. It should be noted that before an AIP is issued a full credit score and credit search of the intermediary’s customer will be undertaken by Bristol & West.
alburaq will provide the relevant intermediaries with a supply of the necessary Marketing Materials and Application Packs to send to prospective clients.
The following Key Fact information is required to be submitted to clients (in the required FSA format) before an Application Form is submitted or an AIP is requested by a client.
- the Initial Disclosure Document (IDD) – which the intermediary must provide under cover of its own letter head and logo (samples of which are available from FSA)
- the Risks and Features Statement (R&FS) - which is supplied by Bristol & West and available from alburaq
- the Financial Information Statement (FIS) which will be available via this website or via alburaq
To register with alburaq as an authorised intermediary please contact the alburaq helpdesk on 0800 587 8866.
Referrals Only
If an Independent Financial Adviser (“IFA”) is not authorised by the FSA to arrange and introduce HPP business but is nevertheless authorised by the FSA to undertake other business, then such an IFA may make referrals to alburaq.
The IFA must obtain and advise the correct full name and contact details of the prospective client and make it clear that they are not authorised to undertake the HPP business themselves but only to refer such business to alburaq.
If the application is concluded then alburaq will pay the IFA a referral fee upon completion at such rate that is separately agreed with alburaq.
Following any such referral alburaq will then assume direct contact with the client.
Please contact us on 0800 587 8866 to discuss this in more detail.
Registered intermediaries please login. If you do not have login details please call alburaq for access details.
If you have been appointed by alburaq to provide referrals only, then please submit the details using the following link.
