The four grades
Each file gets one of four grades, so firms, software and reviewers all reach the same answer for the same file.
Meets standard
Every required item present, no unexplained red flags
Proceed
Meets with notes
All items present, minor gaps in wording or detail
Proceed; adviser tidies the file within an agreed period
Gaps to fix
A required item is missing, or a red flag has no written reason
Do not submit until fixed
Does not meet
The evidence points against the recommendation (for example, consolidation costs the client more with no valid reason)
Stop; re-advise, decline or refer elsewhere
Software can apply the first three grades automatically, as a pre-check. "Does not meet" always needs a human reviewer, and no automated grade counts as compliance sign-off.
No automated grade is compliance sign-off. Only a person can grade a file 'Does not meet'.
In the rule pack, each rule's severity is the grade a file gets when that rule fails. Read the schema.
The Specialist Lending File Standard is not legal or compliance advice and does not replace FCA rules. Information for professional intermediaries, not advice. Comment on the draft.