Whatever new rules governing financial advice are adopted, they should cover mortgage brokers advising on mortgages to purchase owner-occupied houses as well as investment properties, says New Zealand Mortgage Brokers Association chief executive Megan Salt.
Tuesday, July 12th 2005, 5:46AM
by The Landlord
In the association's submission on the Financial Intermediaries Task Force's option paper, Salt says excluding advice on owner-occupied houses could result in the most vulnerable in society being excluded from the protections being considered by the task force.
"The task force appears to be of the view that advice on residential property should remain outside the scope of the review and the options for regulation while advice surrounding the purchase and funding of an investment property should be within the scope," the submission says.
Salt gives two examples to illustrate why this isn't a good idea.
A retired couple with a modest income and a modest, mortgage-free home seeking advice on an equity release product wouldn't be covered by the task force's deliberations and the subsequent regulation.
