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Jessica Darnbrough
Brokers need not shy away from the term 'advice', MFAA chief executive Phil Naylor has claimed.
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Many brokers are worried about using the term ‘advice’ when referring to themselves and their services; however, this fear is unfounded, Mr Naylor told The Adviser.
“I have a lot of brokers tell me that they cannot provide advice under the NCCP. This is simply not the case,” he said.
“Nowhere in the NCCP does it say that mortgage brokers cannot provide advice. At the end of the day, what would a borrower go to a broker for if not to receive advice?
“At the MFAA, we believe brokers do provide advice, which is why we will be transitioning to the term ‘credit adviser’ come February 2013.
“Mortgage brokers will no longer be referred to as brokers, but rather mortgage advisers. This is just one step on the journey to true professionalism.”
Mr Naylor’s comments were echoed by Loan Market Group’s Mark De Martino who said brokers should realise they provide much more than a home loan service.
“Brokers are not just service providers, they are credit advisers,” Mr De Martino said. “Whether or not brokers feel technically comfortable saying they provide advice, they must realise that they are, in fact, providing sound and reliable advice to their clients.”
