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Speculation that financial planners could enter the mortgage distribution space has been dismissed by Liberty Financial’s Brendan O’Donnell.
Speaking to The Adviser, Mr O’Donnell said while it is essential for brokers and planners to diversify their core offering, individuals will never offer both services.
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“Diversification is necessary. On the mortgage broking side, slow credit growth teamed with borrower caution means brokers now have to work twice as hard in order to generate the same level of income that they earned a few years ago,” he said.
“While both industries will continue to grow, brokers and planners still need to think about diversification and other ways that they can make additional revenue.
“There is a lot of talk in the industry about the convergence of financial planning. I don’t believe there will ever be a convergence in terms of one individual providing wealth preservation and credit advice.
“Given the complexity of both industries, the products and the legislation, it would be almost impossible for one person to offer both services.”
Mr O’Donnell said the industry was likely to see more brokerage groups or financial planning groups hiring financial planners and brokers to offer their services in-house.
“I expect to see a lot of brokerages hiring financial planners to help service and cross sell to their database,” he said.
