NZMBA develops new process for brokers

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A six step advice process has been developed to help mortgage brokers prepare their businesses for the new requirements in the Financial Advisers Act.

Tuesday, February 9th 2010, 10:52AM

by Jenha White

NZMBA president Darren Pratley says the six step advice process is based on industry standards set by ETITO and is available to NZMBA members in its final draft form.

“It has been designed to meet the principles and standards developed by ETITO for advisers which are now being registered on the NZQA framework.”

The six step process is:

1. Client Relationship - Disclosure Document & Scope of Service
2. Needs Analysis - Fact Find and Needs analysis
3. Develop Recommendations (Application Process)
4. Negotiate Recommendations - Final selection and confirmation
5. Implementation
6. Review Process

Pratley says the NZMBA has developed a draft set of forms and materials that will help NZMBA members to implement this process into their businesses.

“These standards are areas advisers need to focus on and these forms are specifically designed for advisers who are focusing on the quality of process.”

The NZMBA is also assisting ETITO in developing courses to specifically suit the mortgage and insurance broking industries.

“There are changes to come in the legal requirements and definitions around the Financial Adviser Act so the NZMBA is assisting in building product course material so advisers can get an educational pathway to meet regulation requirements in the mortgage broking and insurance industry.”

He says the NZMBA has been receiving great support from the membership and suppliers and it looks forward to developing more opportunities for the industry to grow and to provide consumers with great advice and service.

This focus on regulation ticks the first box in the NZMBA’s new strategic plan which focuses on five key principles:

1. To provide the framework for transition towards a regulatory environment.
2. To develop and build a sales and compliance process to support members providing risk solutions to clients.
3. To provide industry outcomes which benefit NZMBA members.
4. To provide learning and development opportunities that enhance the professional image of NZMBA members.
5. To encourage the use and promotion of the NZMBA brand.

Pratley says the NZMBA will also be working to provide support to an increasing number of mortgage advisers who are now providing insurance services as part of their adviser role with assistance from suppliers and brokers alike.

Jenha is a TPL staff reporter. jenha@tarawera.co.nz

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