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A preference for dealing with high-net-worth clients may see some financial planners miss out on securing the valuable next generation of clients, particularly if mortgage broking groups position themselves to provide advice in the wealth accumulation space.
Professional Investment Services (PIS) recently entered into a joint venture with mortgage broking franchise company Refund Home Loans. Under the current agreement, Refund Home Loans will offer PIS’ financial planning products to its existing clients, but the group aims to use this as a base on which to build its own full service financial planning division. The group’s initial focus will be on providing risk insurance advice, having introduced property and general insurance advice to its services last year.
Refund Home Loans executive chairman Wayne Ormond believes “many financial planners are selective in their clientele, preferring to deal only with high-net-worth individuals”. His group, however, is tapping into young families and wealth accumulators as they purchase their own homes. Refund Home Loans has more than 300 franchises across Australia, providing the group with a large pool from which to secure new clients.
Furthermore, Ormond said the “ideal time for customers to review their [life insurance] cover is when they are borrowing”.
The head of the newly-created Refund Financial Planning, Philip Ezzy, described it as a “logical next step” for a Refund Home Loans adviser to enquire into whether a client has adequate income protection or life insurance after having arranged a home loan.
Refund Home Loans said it has already appointed a number of qualified financial planners “who see the benefits of association” with home loan activities. The group is now recruiting in the areas of accountancy and banking to find people who wish to become financial planners under its model.
