Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Brokers better suited to serve financial planners' clients, counters aggregator CEO

Notify me of new replies via email
Australian Broker | 22 Mar 2013, 07:00 AM Agree 0
In a heated response to yesterday's comments by Max Franchitto, one aggregator CEO says brokers should, in fact, be targeting financial planners' clients
  • Dean | 22 Mar 2013, 10:32 AM Agree 0
    Here, here.
  • John Graham | 22 Mar 2013, 10:42 AM Agree 0
    Tim you are ill informed or just naive. The simpe truth is a broker is about the transaction. Very few brokers actively "service" their clients. Contact with them is not service by the way. The Financial Planning industry despite the bad apples has for some time provided active advice and strategy AND ongoing service by reviewing their clients progress to goals and objectives. And now with FoFA, true client engagement will be paramount. I agree that it is possible for both industries to cross pollenate but a planner these days is a more highly qualified professional and already has discussions around debt whereas a broker does not traditionally discuss the breadth of advice areas a planner does. So your comments Tim look desperate and defensive.
  • Brent Kelly | 22 Mar 2013, 10:54 AM Agree 0
    I am a financial planner moving into the broker space. The main reason, I am sick of seeing brokers 'over lend' to average mums and dads who can’t afford it.
    my thoughts on those brokers who move into FP space, I am terrified they are taking the FP industry back to the dark days of product flog at any cost- comments by Mr. Brown re 'give clients products they want' convinces me he has no idea what a good financial planner actually does- terrifying comments really. These brokers entering the FP space are there to increase their business revenue at the detriment of the client outcomes. (do they know what a PRS is). For me, as a long term 'fee for service' planner it is scary stuff and I would encourage ASIC to 'fire a shot across the bow' of these broker FP dealer groups before it’s too late.

  • BJ | 22 Mar 2013, 10:59 AM Agree 0
    “Selling them products they don’t want”. What a narrow view and particularly weighted as self-interest.
    Finance brokers “sell” bank products “loans”. The vast majority of finance brokers have fewer than 5 accreditations with lenders, most of which are the Big Four and are caught in the transactional mode! Surely Mr Brown you could articulate a response which is more balanced and not open the industry to further criticism specific to self-interest.
    Mr Franchitto’s comments are quite frankly equally self-serving.
    The discussion needs to move to how best the two professions can grow in unison and maximise the potential benefit for all, client first.
    Financial Planners and Brokers are like oil and water, they simply do not mix well, but, in an environment where both skill sets are harnessed much is achieved. The fact is, a growing number of Financial Planning practices are moving to embrace credit advice and this is a positive move. The most successful have the finance broker embedded within the practice and moving to equity participation. JV’s where all interests are aligned and not simply a referral source.
    The problem for finance brokers and financial planners is one of how best to achieve business integration. A few are doing it well, but the issue is locating quality brokers who are not handcuffed to the aggregator. Financial Planners have a lack of confidence in our industry. Now why would that be the case Mr Franchitto and Mr Brown.
    What a bazaar industry, where you enter only to find that you are tied to the wheel. Not so with financial planning, where they, as a profession have the freedom to move and take their clients inclusive of the service fees (trail commission).

  • Country Broker | 22 Mar 2013, 11:19 AM Agree 0
    Great reply , could not agree more except for Superannuation commentb , tes we can and do larrange loans for SMSF but so complex , need a good relationship with an accountant and or planner to be effective and safe in that space .
    i really thought the comments yesterday were basically self serving rubbish.
  • Gibbo | 22 Mar 2013, 12:38 PM Agree 0
    I am both a Broker & Planner and absolutely concur with these comments. I have also owned both types of practices and have found that Planners only really want Type A clients and typically have poor or slow client response times.

    Whereas a good Broker will build a more trusted relationship and is better placed to certainly service the client better for Insurance & Super needs, given they are trained correctly.
  • Melbourne Broker | 22 Mar 2013, 12:53 PM Agree 0
    Couldn't agree more. Let's not forget that most planners are glorified insurance salespeople who ranked down there with second hand car salespeople.
  • BCJ | 22 Mar 2013, 06:52 PM Agree 0
    Comments from a man who is out to sell a product i.e. Vow Financial Planning.
    I can only assume that what Mr Brown described as alleged industry practice for Financial Planners won't be interpreted as an attack on the established advisers in his FP AFSL.
  • Melbourne Planner | 26 Mar 2013, 09:09 AM Agree 0
    Re Melbourne Broker;
    What an absolute immature comment you have made, FYI my company is constantly being contacted by mortgage brokers to form a relationship, i have resisted and have the service in house, this is due to the fact that people with your limited intelligence cause no end of disharmony between our two professions.
    I recommend you read your post prior to putting it online, it is an embarrassment.
Post a reply