Powered by MOMENTUM MEDIA
subscribe to our newsletter

Brokers can’t be planners, says aggregator

There is ‘no way’ that a mortgage broker can also be a financial planner, according to the head of a national mortgage aggregator and financial planning dealer group.

Speaking to Mortgage Business, Astute Financial director Brad Wood said that while his multi-service company provides both mortgage broking and financial advice, both businesses operate independently.

“They have their own management structures and they have their own cost centres,” Mr Wood said.

“What we are looking to create is the opportunity for clients to have a one-stop shop where they can come in and talk about their mortgage with a professional mortgage broker,” he said.

“They can talk about their requirements in equipment finance or commercial lending with an experienced and qualified equipment finance or commercial lending broker.

Advertisement
Advertisement

“If they want to talk about insurance or wealth creation, those are completely separate disciplines that require different skill sets and different training and understanding.”

Mr Wood has been quick to point out that Astute is not a business where customers visit a broker who can also provide them with insurance and wealth advice.

“I don’t think you can be an expert in everything,” he said.

“You need to specialise in a certain area but then have access and availability to refer to other professionals in other disciplines to make sure your clients are getting the same level of professionalism that you are providing in your discipline.”

The convergence of financial services has divided the industry, with some diversified operators claiming brokers can become financial planners, while others, like Mr Wood, argue the two professions must remain separate under one roof.

PROMOTED CONTENT


Yellow Brick Road chief executive Matt Lawler told Mortgage Business last month that mortgage broking is a ‘sub-segment’ of financial planning, sparking a reaction from a national brokerage.

Mortgage Choice chief executive Michael Russell dismissed the idea.

Responding to Mr Lawler’s claims, Mr Russell said brokers should not fall victim to being a ‘jack of all trades’.

“There is no way that someone who specialises in mortgages with all the requirements and regulations that you need to be across has got the same amount of time to devote to a discipline like planning,” Astute’s Mr Wood said.

“How can you do both to the best of your ability? It doesn’t work.”

Brokers can’t be planners, says aggregator
mortgagebusiness

Latest News

Mortgage Business’ sister brand The Adviser’s Australian Broking Awards 2021 recognised the crème de la crème of the mortgage and fina...

Australian capital city dwelling prices will peak in the first half of 2022, according to a research firm, which has tipped further APRA int...

The Customer Owned Banking Association has welcomed moves for greater banking regulations, suggesting a regulatory initiatives grid could be...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think APRA's bank buffer changes will see more borrowers use non-banks?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.