tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, April 2nd, 10:34PM

Mortgages

rss
Latest Headlines

Jeff Royle targets industry leavers

High profile mortgage adviser Jeff Royle of iLender is offering an alternative service for brokers who want to exit the industry.

Wednesday, March 11th 2020, 3:05PM 1 Comment

Although the deadline for transitional licensing for financial advisers is the end of June, just 15% of mortgage advisers had applied for or received their transitional licence at the end of February.

Part of the reason is that a number of groups, including the largest player, NZ Financial Services Group, had not disclosed their proposition to the market.

Royle said advisers had been told there were three possible outcomes post the June 29 transitional licensing deadline; exit the industry, become a FAP or become a licensee under someone else’s FAP: “Until now these seemed to be the only options for all mortgage advisers,” he said. “The good news is there is a fourth option.”

Royle and his wife Heather, who used to lead Kepa’s mortgage offering, have developed a service called “Refer Direct”.

It is based on their experiences in the United Kingdom when regulatory changes turned the industry on its head in the early 2000s.

Jeff Royle says brokers exiting the industry, for whatever reason, found that the value of their client books fell off a cliff, due mainly to the large number of books available. Also, the few adviser firms able to take on another adviser's clients was small, as the cost of due diligence was too high and the compliance risk too great.

Their Refer Direct model proved to be a viable alternative.

“The introducer simply referred a client and the regulated firm dealt directly with the client, providing the appropriate advice. This stopped the slightly uncomfortable conversation of 'sorry, I’m not in business anymore, so I can’t help'.”

The introducer received a percentage of the revenue generated and so continued to receive an income stream. In this way the introducer was still able to benefit from years of previous work in developing their client book.

The iLender service will give introducers' clients ongoing advice and provide brokers leaving the sector with an ongoing income stream.

Jeff Royle says Refer Direct will be limited to 100 introducers “to ensure quality of advice and consistency of client service”.

Tags: Financial Services Legislation Amendment Act Jeff Royle licensing Refer Direct

« Mortgage rate drop will be minor: ASBGroups apply for transitional licensing »

Special Offers

Comments from our readers

On 12 March 2020 at 12:45 pm Veteran Charles said:
Good for you Jeff, you are taking action instead of just talking about it. I wish you all the best with that. You are the man to make it work.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Advisers 'will drop out'
    “@gavin austin - actually our focus is on getting Advisers to ask their existing customers "What can we do to help you?"...”
    3 hours ago by Andrew Scott GM Newpark
  • Advisers 'will drop out'
    “Interesting comments Andrew. I take it from your comment about Dgs being worth their salt that you've provided your members...”
    6 hours ago by gavin austin adviser business compliance
  • AML flexibility offered
    “AML flexibility is great and well received. What are the law society and the JP organisation doing to find ways to reduce...”
    7 hours ago by Tony Walker
  • Advisers 'will drop out'
    “@Fred Dodds - with respect, focusing on your Level 5 qualification, or for that matter your transitional FAP licence, is...”
    10 hours ago by Andrew Scott GM Newpark
  • Covid withdrawals possible 'but not always desirable'
    “Very few of us have any idea what facing homelessness and potentially starvation (literally and figuratively) is like. As...”
    10 hours ago by Chris Hardcastle
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.55 3.89 3.99
AIA Special - 3.05 3.39 3.69
ANZ 4.44 3.55 3.85 4.49
ANZ Special - 3.05 3.35 3.99
ASB Bank 4.45 3.55 3.89 3.99
ASB Bank Special - 3.05 3.39 3.69
Bluestone 4.44 4.44 4.29 4.34
BNZ - Classic - 3.09 3.35 3.69
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.75 4.10 4.55
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.15 3.15 3.19
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union North 6.45 - - -
Credit Union South 5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 ▼2.95 ▼3.09 ▼3.50
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 3.94 4.08 4.39
Kiwibank 4.40 3.84 4.14 4.40
Kiwibank - Capped - - - -
Kiwibank - Offset 4.40 - - -
Kiwibank Special - 3.09 3.39 3.65
Liberty 5.69 - - -
Lender Flt 1yr 2yr 3yr
Napier Building Society - - - -
Nelson Building Society 4.95 ▼4.09 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.45 3.89 3.94
RESIMAC Special - - - -
SBS Bank 4.54 4.85 5.05 5.49
SBS Bank Special - ▼3.09 ▼3.39 ▼3.69
The Co-operative Bank - Owner Occ 4.40 3.25 3.45 3.69
The Co-operative Bank - Standard 4.40 3.75 3.85 4.19
Lender Flt 1yr 2yr 3yr
TSB Bank 5.34 ▼3.89 ▼4.15 ▼4.49
TSB Special 4.54 ▼3.09 ▼3.35 ▼3.69
Wairarapa Building Society 4.99 3.95 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - 3.09 3.39 3.69
Median 4.60 3.65 3.89 3.99

Last updated: 31 March 2020 8:55am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com