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New research suggests that a majority of brokers believe it is feasible for them to offer financial advice.
The Financial Services Convergence survey, conducted by The Adviser and sister publication ifa (Independent Financial Adviser), has revealed just 32.4 per cent of respondents said they believe it is not practical for qualified brokers to provide financial advice while more than 55 per cent said they believe it is.
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“We know their financial position and it would be a simple step to discuss their financial goals and provide solutions,” commented one survey respondent.
“[A] majority of info for both can be collected at the same time, plus NCCP should ensure we collect the info to determine suitability,” said another.
Elite Business Writer Tony Bice of Finance Made Easy told The Adviser he began offering financial advice on top of broking five years ago, and it was the best move he has ever made.
“I could see way back then that the mortgage broking market was getting saturated by brokers and if you wanted to really survive in this industry you had to have a uniqueness about your business model so that it would attract clients,” Mr Bice said.
“It has been brilliant; it was the best move I have ever made. If you want to strip it right down, we can do the simple maths: if I was to try and get the remuneration I get now and I wasn’t a financial planner, I would have to write twice the amount of home loans I do,” he said.
“At the end of the day, my clients are sticky, they are not going to go anywhere because I've got their home loan, I've got their risk and [their] super all tied in under the one roof.”
The survey also revealed 71.6 per cent of the industry believes it is a genuinely valuable proposition to be able to offer solutions to all a client’s financial needs.
Anne Clarence, mortgage broker and financial adviser from Advanced Financial and Accounting Solutions, said she offers financial advice to give her client a holistic financial experience.
“The reason why I went ahead and did my financial planning is because I believe my clients need, from whoever they are working with, the ability to get holistic advice,” she said.
“If you’re just offering a product, i.e. a broking service, how do you know without having done some sort of financial planning or accounting course, if you don’t have some understanding of the tax implications of some of the loans, how do you give your clients holistic advice?”
