Home' MFAA Prosper : Mortgage and Finance Brief 19 Contents 18 Mortgage & Finance brief
FINANCE IN FOCUS
OUR EXPERTS OUTLINE THE LATEST DEVELOPMENTS AND OPPORTUNITIES IN THEIR SECTORS.
There is a trend in the industry for
broking and financial planning and
ser vices to meld together. The entire
industry is moving closer together and,
at the same time, it is becoming more
Being a broker, a financial planner or an accountant these
days comes down to being a conduit for a range of financial
services. If brokers and financial planners fail to provide
comprehensive financial ser vices, it is only inviting the banks
to move in and take a larger market share.
I think brokers can act as financial planners and vice versa as
long as they hold the appropriate authorities and accreditation.
They need to be an authorised member of a financial ser vices
group or they must be the holder of an Australian Financial
Ser vices Licence.
There is no doubt that there are risks and pitfalls in
providing broking ser vices and financial planning at the same
time, especially if you are not qualified. It is a hell of a risk to
provide financial advice, particularly if you lack the proper
accreditation. It can mean financial losses, loss of licence and
potentially even a jail term.
At Ballast we offer broking, financial planning,
accounting, estate planning, life insurance and
superannuation, and we have 40 financial planners and around
150 brokers. Some cross over from broking to financial
planning, but they all refer work to each other. We make sure
that all our brokers and financial planners undergo rigorous
checks, including credit checks, asset checks, police checks --
plus we look into their track record with other aggregators
before accepting them at Ballast.
So we actively encourage the crossover of professions in the
industry, but with the proviso that our people have the skills,
experience and judgement to get the best financial outcomes
for their clients.
Australian Capital Home Loans
and Financial Planning
For someone who is serious about providing
holistic financial advice, I don't see any risks
or conflicts of interest between brokers and
It is easy for a financial planner to write loans, but it's not as
easy for a broker to recom mend planning. Brokers who want
to upskill need to be with a group that can train, mentor and
develop them over time. Ideally, the broker would work with an
experienced planner so that they can eventually offer a full suite
of financial ser vices to their customers.
The only pitfall I can see is having too much on your plate
at once and having to hire staff to help you -- but then again, I
don't think that's a bad problem to have. The growth period may
mean extra work, but if done cor rectly it will lead to a successful
future and a stronger business. Of course, offering both services
will only work if you can provide both competently. If you have
dedicated the time to study both areas and know your products,
I believe you will be a success in our industry.
When brokers turn to planning or when planners turn to
broking, they can be sure they are giving the client the best
advice because they are viewing the client's financial position
holistically, rather than addressing just one element. A financial
planner would want their customer to be in a home loan that was
going to put them in the best financial position for the future, so
that the planner could help them further with a financial plan.
Having done this with Australian Capital Home Loans and
Financial Planning for some time now, I can see the synergy
achieved when one professional takes care of their clients for
their full financial lives. In my experience, it provides better
outcomes for the clients, as well as increased income for the
broker/planner. It's a win-win situation.
Note: planners and brokers require appropriate licensing/appointment, training and
accreditation to enable a crossover to both activities.
In my experience, it provides better outcomes for
the clients, as well as increased income for the
broker/planner. It's a win-win situation.
I think brokers can act as financial planners and
vice versa as long as they hold the appropriate
authorities and accreditation.
Lines are blurring between mortgage brokers and financial planners. Some industry leaders
encourage the crossover, others demand high levels of skill, experience and sound judgement.
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