Planners lift mortgage broking standards
Adelaide-based consultant Max Franchitto (pictured) claims there is nothing new in financial planners moving into the mortgage broking sector, with much of the motivation being the poor quality of the advice handed out by mortgage brokers.
He said that while the National Consumer Credit Protection Act (NCCP) had played a part in the decision-making of some planners, it had not proved to be the ultimate catalyst.
Franchitto said he believed the NCCP would have much the same impact on the mortgage broking sector as the Financial Services Reform Act had had on the financial planning sector in terms of flushing out bad players.
He also questioned whether commissioned-based remuneration would survive in the mortgage broking sector in circumstances where mortgage product commissions carried the same burden of ‘conflict of interest’ and ‘fiduciary duty’ as investment platforms and products.
Franchitto predicted that, increasingly, mortgage broking would cease to exist as a single channel and would give way to a one-stop shop based on financial planning and the delivery of other services.
AUTHOR
Mike Taylor
Recommended for you
Adviser willingness is the key hurdle to the uptake of ESG matters by financial advisers; they should not feel afraid or embarrassed if they are less familiar with what clients are seeking.
In his first move since the acquisition by Count, former Diverger managing director Nathan Jacobsen has taken up a new leadership role in the financial advice space.
Medical grounds are no excuse for compliance failures as a Victorian AFSL is sentenced for failing to lodge annual financial reports.
The balance of ASIC enforcement activity is skewed towards civil rather than criminal cases, but the corporate regulator says it is seeking to redress this balance.
