So mortgage brokers don’t want to join with financial planners, huh. Rather they want to keep their own association to push their issues with regulators and the like.
The idea of a merger between the Financial Planners and Insurance Advisers and NZ Mortgage Brokers Association has never been publicly discussed – but clearly has been something people have considered.
However, the NZMBA has made it pretty clear that it wants to build its own empire rather than joining forces with the FPIA.
While many people out there will think great. They look at the other side and say they are not part of my industry. Well, I say what rot! This decision, to my mind is a little unfortunate. Advisers – and I use that word in the broadest sense - need to look at this issue from the eyes of the consumer.
Why? The first, and biggest financial commitment people get in their lives is their mortgage. Research shows us that an increasing chunk of this mortgage business is being done through mortgage brokers. Currently about a quarter to one third of mortgages come through this channel. If New Zealand follows Australia and the United States then it is quite conceivable that brokers will write the majority of mortgages. The theory is once people get rid of their debt and have assets then they start saving for their retirement. Who do they go to – why a financial planner or insurance adviser.
It seems logical then that a good source for new business for a financial planner would be a mortgage broker. All three types of advisers are on a continuum of the financial passages lifestage, yet there are few integrated businesses.
If you accept this argument, then it makes sense that all “intermediaries” in the financial services industry – no matter what they sell – should be working together.
Likewise, the experience of the FPIA and its predecessors (IIAA and IAFP) show that size matters. For the NZMBA to be effective with 600 members or in a merged body with the lenders is questionable. Likewise the idea of working with Australian ideas is something that is fraught with difficulty as the regulations governing advisers in both countries are quite different.
I’m sure these stories will generate some good debate amongst advisers.
Mortgage brokers to go alone
FPIA disappointed with mortgage brokers
Maybe a note: If you are an adviser in Auckland then consider going to the FPIA Auckland branch debate "That New Zealand Financial Advisers need regulating by legislation". For more info contact Barry Read barry.read@nz.towerlimited.com
Forums – Have Your Say!
Which brings me to the question: Have you visited the Forums on Good Returns yet? The forums are a place you can discuss issues and kick around ideas.
At Good Returns we are keen to encourage discussion amongst people in the financial services industry, or with an interest in savings and financial planning and the forums are a way of doing that.
The forums can be found at http://www.goodreturns.co.nz/section.php?CategoryID=19
There are four areas, Editorial, General, Policy and SuperTalk.
The Political/Policy one has some interesting ideas on Tim Sole’s suggestion that people select their own retirement age.
The story Select your own retirement age is here.
If you are interested in discussing shares and investment issues then visit www.sharechat.co.nz
Other stories this week:
INGsurance
ING has confirmed it still wants to sell insurance products
BNZ reopens funds
Five BNZ funds closed because of tax problems have been reopened now BNZ has chucked $7 million of its own money into them. (Will heads roll over this?)
FINANCIAL PLANNER OF THE YEAR AWARDS – For more details go to http://awards.goodreturns.co.nz/
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