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Mortgage Choice has revealed its plans to add a wealth management arm to its broking business.
Speaking at a media function in Sydney yesterday, Mortgage Choice chief executive officer Michael Russell said the brokerage will launch a wealth management business in 2012 as part of the company's diversification strategy.
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"Last year, we unveiled our year DREAM strategy. The 'D' stands for diversification and adding a wealth management arm to our business will help us do just that," Mr Russell said.
Mr Russell said Mortgage Choice had the right brand and expertise to offer wealth management services to Australians.
"A lot of Australians are receiving very ordinary financial advice and we want to change that," he said.
"Not only that, but we believe the Mortgage Choice brand will stretch nicely over this space."
But while Mr Russell said the wealth management business would help its brokers' businesses, he was quick to point out that the new business would sit alongside the broking business, not within it.
"Our brokers will refer customers that need additional financial advice on to the wealth management arm. They will not hold an ACL and an AFSL [Australian Financial Services Licence]," he said.
"At Mortgage Choice, we believe it is too onerous for brokers to hold a broking licence as well as a planner license. As such, we will ask them to refer business to the fully accredited financial planners we will have working in the wealth management business."
